By John E. Fitzgibbon, Jr.

The 2007 IPO market kicks off with one of its earliest starts in years. Bankers plan to price one deal in the week that starts on January 8. It is an oil and gas limited partnership, but more on this later.

Let’s flip the calendar quickly back to December. For the first time in history, bankers were pricing deals running into the Christmas break.

For the entire month of December, a total of 36 IPOs were priced. You have to go back over six years to find a busier month. It was August 2000, when 69 IPOs were priced, according to available records.

The 2006 IPO year closed with a rush, led by technology. The headliners were: Guidance Software, IPG Photonics, and Isilon Systems. Those three ended the year with an average gain of 63.3 percent above their initial offering prices. Here are the details:

Guidance SoftwareIsilon Systems

—Guidance Software, a Pasadena, California-based provider of software for digital investigations, priced 5 million shares at $11.50 each on December 12. Guidance closed the year at $15.57, up 35.4 percent from its initial offering price.

Pasadena, California-based provider of

—IPG Photonics, an Oxford, Massachusetts-based developer of a broad line of high-performance fiber lasers, priced 9 million shares at $16.50 each on December 12. IPG closed the year at $24, up 45.5 percent from its initial offering price.

—Isilon Systems, a Seattle-based provider of clustered storage systems for digital content, priced 8.35 million shares at $13 each. Isilon closed the year at $27.37, up 110.5 percent from its initial offering price.

Staying Connected

That set the stage for other technology deals. Consider this. The last three companies to file for IPOs were technology providers, through the close of business on January 4. (No pricing dates yet.) But here they are:

—BigBand Networks filed for an IPO to raise $140 million on December 22. Based in Redwood City, California, BigBand develops, markets, and sells network-based systems that let cable operators and telephone companies offer video, voice, and data services across coaxial, fiber, and copper networks.

Formed in 1998, the company has about 507 employees. For the nine months ending September 31, BigBand Networks reported a net loss of $66,000 on total revenues of $113.6 million, compared with a net loss of $19.7 million on total revenues of $71.2 million for the same period a year ago.

The underwriters are Morgan Stanley, Merrill Lynch, Cowen, and ThinkEquity Partners.Selected principal shareholders are Redpoint Ventures, ADC Telecommunications, Charles River Partners, Meritech Capital, Evergreen Partners, Pilot House Ventures, and Cedar Funds.

Redpoint Ventures, ADC Telecommunications, Charles River Partners, Meritech Capital, Evergreen Partners, Pilot House Ventures, and Cedar Funds

—MetroPCS Communicationsfiled for an IPO to raise $1.125 billion on January 4 (see MetroPCS Files for IPO). Based in Dallas, MetroPCS provides wireless broadband personal communication services on a no-long-term contract, flat-rate, unlimited usage basis in selected major metropolitan markets in the United States.

Formed in 2002, the company has about 1,860 employees. For the nine months ending September 30, 2006, MetroPCS reported net income of $52.1 million on total revenues of $1.1 billion, compared with net income of $163.5 million on total revenues of $750 million for the same period a year ago.

The underwriters are Bear Stearns, Banc of America Securities LLC, Merrill Lynch, and Morgan Stanley. Selected principal shareholders are Accel Partners, First Plaza Group Trust, M/C Venture Partners, Madison Dearborn Capital Partners, and TA Associates.

Accel Partners, First Plaza Group Trust, M/C Venture Partners, Madison Dearborn Capital Partners, and TA Associates.

—Omneon Video Networks filed for an IPO to raise $115 million on December 29. Based in Sunnyvale, California, Omneon provides digital content storage and processing systems used by media companies to enable efficient production and distribution of high-quality digital video and audio.

Formed in 1998, the company has about 209 employees. For the three months ending September 30, 2006, Omneon Video reported net income of $6.3 million on total revenues of $60.3 million, compared with net income of $1.4 million on total revenues of $36.3 million for the same period a year ago.

The underwriters are JPMorgan, Deutsche Bank Securities, Canaccord Adams, Needham, and JMP Securities. Selected principal shareholders are Norwest Venture Partners, Accel Venture Partners, Advanced Technology Ventures, INVESCO Private Capital, Meritech Capital Partners, and Lucent Venture Partners.

Canaccord Adams, Needham, and JMP Securities

Yes, We’re Open

Given the surge in the December IPO traffic, it should come as no surprise that bankers are itching to hang out the “Open for Business” sign as soon as possible.

They are doing it.

This week’s calendar marks one of the earliest starts in the last 10 years. The earliest was in 2004.

On January 8, 2004, K-Sea Transportation Partners LP, an East Brunswick, New Jersey-based provider of marine transportation services to oil companies, oil traders, and refiners, priced its IPO of 3.6 million shares at $23.50 each. The original IPO buyers have done well. Three years later, on December 29, 2006, K-Sea closed at $36.09, up 53.6 percent from its initial offering price.

East Brunswick

Inside This Week’s IPO Calendar

This week’s new-issues calendar lists one deal. Bankers expect to raise $117 billion.

Company Profile:

—Legacy Reserves LP is a Midland, Texas-based independent oil and natural gas limited partnership focusing on the acquisition and exploitation of oil and natural gas properties located mostly in the PermianBasin of West Texas and Southeastern New Mexico.

Legacy Reserves plans to price 6 million units representing a limited partnership interest at $18.50 to $20.50 each to raise $117 million. The IPO is to start trading on Friday, January 12.

The company expects to make quarterly cash distributions of $0.41 per unit or at an annualized rate of $1.64 per unit to yield about 8.63 percent.

$1.64 per unit to yield about 8.63 percent.

For the nine months ending September 30, Legacy Reserves reported pro forma net income of $6.9 million on pro forma total revenues of $56.7 million.

Legacy Reserves

Formed in 2005, Legacy Reserves has about 24 employees.

Legacy Reserves

Underwriters: Wachovia Securities and Friedman Billings Ramsey are the joint-lead managers. Acting as co-managers are Raymond James, RBC Capital Markets, Oppenheimer, and Stifel Nicolaus.

lead managers. Acting as co-managers are Raymond James, RBC Capital Markets, Oppenheimer, and Stifel Nicolaus.

Selected Principal Shareholders: Moriah Group, Moriah Properties, Brothers Group, Brothers Production Properties, Brothers Production Co., MBN Properties, and Newstone Group

52-Week Percentage Change:

Dow Jones U.S. Exploration & Production Index: down 3.41 percent

U.S.Nasdaq Composite Index: up 7.75 percent