avatar
Archives

IPO calendar is nothing but Net


The IPO calendar for April's final week features seven Internet deals that will likely blast into outer space. (There are four other IPOs, not tech-related.) In addition to the 11 new issues scheduled for the week of April 26, another 16 offerings are on tap for the week of May 3.

Last week's new issue calendar produced 11 offerings that raised $593 million. Four of the IPOs were Internet-related, and small-cap dealers underwrote two offerings. Despite Monday's 138-point plunge in the Nasdaq, stock prices rebounded as the Dow Jones Industrial Average soared into record-breaking new highs and Nasdaq recovered all of its losses.

HOT IPOS, WEEK OF APRIL 26AppliedTheory provides Internet solutions to about 650 midsize businesses and public sector institutions, mostly New York public institutions. The company has solid revenue growth, up 143 percent over the last two years. That's enough for IPO traders to rate this IPO's aftermarket performance as very good.

Marimba is a provider of Internet-based software management solutions that enable companies to expand their market reach. The company supplies the tools to those hoping to cash in on the Web. It's the hottest deal of the week.

Mpath Interactive develops technologies that enable Internet sites to create and manage live communities. The company is located in Mountain View, California.

Razorfish deals in the high-end Internet development and enhancement services. Sales soared over 280 percent in 1998 from the year before, and the IPO is hot and getting hotter. The consensus rating has gone up over the past several days to the highest rating, A+.

For offering details on all these companies, look at the charts.

HOT IPOS, WEEK OF MAY 3The Goldman Sachs Group is neither an Internet IPO nor from Silicon Valley, but the 130-year-old broker dealer is the last of Wall Street's crown jewels to come public. Consensus rating is very high. The proposed price range has already been increased from $40 to $50 a share, which is always a good sign that the deal is hot. Some think the Goldman Sachs IPO could open at a premium of $20 a share above its initial offering price.

MapQuest provides Internet-based mapping and geographic information services. In January 1999, the company delivered over 70 million maps and 13.5 million driving directions over the Internet. The Mountville, Pennsylvania-based company has been in business for more than 30 years. Recently, MapQuest signed a two-year agreement with AOL's Digital City, a local content network and interactive community guide. IPO traders think the IPO could open big in the aftermarket.

NorthPoint Communications, located in San Francisco, is a provider of high-speed local data network services. The company services 12 metropolitan areas in the U.S. and plans to expand to 28 by year-end. Microsoft announced a $30 million investment in NorthPoint, consisting of warrants to buy 1.67 million shares of common stock and to buy another $30 million's worth of warrants to buy stock at $27 a share.

The latest consensus rating for the Flycast IPO is very hot. The company provides Web-based advertising to advertisers, e-commerce companies, direct-response marketers, interactive agencies, and organizations. Sales have gone from about $600,000 in 1997 to over $8.0 million in 1998.

Media Metrix provides Internet audience measurement products and services for Amazon.com, America Online, eBay, ETrade, and all the other leading Internet companies. Recently, Media Metrix announced a new e-commerce measurement service and launched the Online Shopping Report.

NetObjects is a provider of e-business software and solutions. The company's major product is NetObjects Fusion, a desktop software application used to build Web sites.

Portal Software develops customer management and billing software for Internet-based services. Revenues have grown 434 percent over the past two years to $26.7 million in 1998, up from $5.0 million in 1996. Consensus rating is an A+; traders expect the IPO to open sharply above its offering price.

Silknet Software provides Internet-oriented sales, electronic commerce, and customer support software. The company is located in Manchester, New Hampshire. Silknet's sales are exploding. For the six-month period ended December 31, 1998, the company reported sales of $5.5 million versus $635,000 for the same period a year ago. Policy Management Systems (NYSE: PMS), for one, announced plans to use Silknet's eService solution. The IPO could do better than its A rating suggests.

TenFold develops customized software applications. This is another fast-growing company. Its sales have exploded to $40.1 million -- up from 1996's sales of $3.0 -- and the company is profitable. In 1998, TenFold reported a net income from operations of $1.8 million. With an underwriting team lead by Goldman Sachs, the aftermarket performance could be much better than the A consensus rating. The company is located in Draper, Utah.

For offering details on all these companies, look at the charts.

Ratings explained
Rated A
Hot. IPO is expected to start trading 2 points or more above its initial offering price.
Rated B
Good. IPO is expected to start trading 1 to 2 points above its initial offering price.
Rated C
OK. IPO is expected to start trading 1/2 to 1 point above its initial offering price.
Rated D
Has a chance. IPO is expected to start trading flat to up a 1/2 point above its initial offering price.
Source: General consensus from poll taken from various IPO experts.