By John E. Fitzgibbon, Jr.

Wall Street’s bankers have cranked up the dream machine to create an IPO calendar for the coming week that’s right up Red Herring’s alley. It’s technology, technology, and more technology.

For the week of February 5, the IPO calendar has 12 deals on its launching pad. Eight companies fall under the technology umbrella. Three are pharmaceutical companies and the final one is a “blank check” carryover from last week. Some of these businesses are fascinating.

If all goes as planned, bankers hope to raise $2.2 billion.

The deals range from an Israeli cell phone provider that some call “the Verizon of Israel,” to a robotic surgery company that has turned its financials around from deep losses to profits, to a profitable Chinese pharmaceutical company and another solar company out of China.

China

Here they are:

Cellcom Israel is a leading, if not the leading telecommunications company in Israel. Over the last 12 months, the company reported net income over $100 million on revenues over $1 billion, and employed almost 3,500 people (see profile below).

Accuray is the provider of a robotic radiosurgery system that treats solid tumors with radiation while minimizing damage to surrounding tissue. The company believes it is the leader in its industrial sector, and its financials look like they have turned the corner. Consider:

·          For the nine months ending September 30, Accuray reported net income of $2 million, compared with a net loss of $10.2 million for the same period a year ago.

·          For the nine months ending September 30, Accuray reported total revenues of $32.8 million, up 741 percent from total revenues of $3.9 million for the same period a year ago (see profile below).

3SBio is an established and profitable Chinese pharmaceutical company. How many pharmaceutical IPOs do you see that can make that claim?

The company offers genetically engineered, protein-based products and product candidates that address large markets with significant unmet medical needs in nephrology, oncology, supportive cancer care, inflammation, and infectious diseases. 3Bio has been around for 14 years and seems to be hitting its stride. Consider the following:

·          For the nine months ending September 30, 3SBio reported total revenues of RMB92.6 million (US$11.7 million), up 21.7 percent compared with total revenues of RMB76.1 million for the same period a year ago.

·          For the nine months ending September 30, 3SBio reported net income of RMB23.3 million (US$3 million, up 80.6 percent compared with net income of RMB12.9 million on total revenues of RMB76.1 million for the same period a year ago (see profile below).

JA SolarHoldings is a Chinese manufacturer of high-performance solar cells that convert sunlight into electricity. This isn’t the first Chinese solar company to make its debut in the U.S. capital markets.

In December, two of its competitors stepped into the Yankee sunlight and didn’t do all that well by year’s end. Since then, they have been flying. They are Solarfun Power Holdings and Trina Solar.

Trina Solar

Solarfun Power Holdings, a Qidong, China-based maker of photovoltaic (PV) cells and PV modules, priced 12 million shares at $12.50 each on December 19. On December 29, it closed at $11.69, down 6 percent from its initial offering price. On February 1, it closed at $14.99, up 28.2 percent from its close at year-end 2006.

Trina Solar, a Changzhou, China-based manufacturer of integrated solar-power products, priced 5.3 million shares at $18.50 each on December 18. On December 29, it closed at $18.90, up 2.2 percent from its initial offering price. On February 1, it closed at $27.67, up 46.4 percent from its close on December 29.

This brings us to the heavy-laden technology IPO calendar for the week of February 5.

Inside This Week’s IPO Calendar

This week’s new-issues calendar lists 12 deals, including three carryovers from last week. Here are the industrial sectors:

·          A cellular service provider (Cellcom Israel)

·          A fabless semiconductor provider (Mellanox Technologies)

·          An ID tag provider (VeriChip)

·          An interconnection and colocation services provider (Switch and Data)

·          Three pharmaceutical companies (Optimer Pharmaceuticals, 3SBio, and Synta Pharmaceuticals)

·          An online auto parts provider (U.S. Auto Parts Network)

·          An operator of digital in-theater networks (National CineMedia)

·          A robotic surgery equipment provider (Accuray)

·          A solar cells manufacturer (JA Solar)

The carryovers:

·          The “blank check” company (Union Street Acquisition)

If everything gets priced, bankers expect to raise $2.2 billion.

Company Profiles

—Accuray, a Sunnyvale, California-based provider of what it believes to be the first and only commercially available intelligent robotic radiosurgery system, plans to price 13.3 million shares at $14 to $16 each to raise $200 million. The company will offer 7.3 million shares and selling shareholders will offer 6 million shares.The IPO is to start trading on Thursday.

As of September 30, Accuray reported an accumulated deficit of $118.7 million.

Accuray

Formed in 1990, Accuray has about 386 employees.

Accuray

Underwriters: JPMorgan and UBS Investment Bank are the joint-lead managers. Acting as co-managers are Piper Jaffray and Jefferies.

lead managers. Acting as co-managers are Piper Jaffray and Jefferies.

Selected Principal Shareholders: President (BVI) International Investment Holdings and Marubeni

52-Week Percentage Change:

Dow Jones U.S. Medical Equipment Index: up 2.49 percent

U.S.

Nasdaq Composite Index: up 8.19 percent

—Cellcom Israel, a Netanya, Israel-based provider of a broad range of cellular services in Israel, including basic and advanced cellular telephone services, text and multimedia messaging services, and advanced cellular content and data services, plans to price 18.98 million ordinary shares at $16 to $18 each to raise $322.6 million. The IPO is to start trading on Tuesday.

Cellcom IsraelIsrael

For the nine months ending September 30, Cellcom Israel reported net income of NIS374 million (US$87 million) on revenues of NIS4,191 million (US$974 million), compared with net income of NIS460 million on revenues of NIS3,845 million for the same period a year ago.

Cellcom Israel

Formed in 1994, Cellcom Israel has about 3,488 employees.

Cellcom Israel

Underwriters: Goldman Sachs, Citigroup, and Deutsche Bank are the book-runners. Merrill Lynch is a joint-lead manager. Acting as co-managers are Jefferies and William Blair.

lead manager. Acting as co-managers are Jefferies and William Blair.

Selected Principal Shareholders: Discount Investment, Goldman Sachs International, and Leumi & Co. Investment House

52-Week Percentage Change:

Dow Jones U.S.Mobile Telecommunications Index: up 3.67 percent

Mobile

Nasdaq Composite Index: up 8.19 percent

—JA SolarHoldings, a Ningjin, China-based manufacturer of high-performance solar cells that convert sunlight into electricity, plans to price 15 million American Depositary Shares representing 45 million ordinary shares at $12.50 to $14.50 each to raise $202.5 million. The IPO is to start trading on Wednesday.

JA SolarNingjin, China-based

For the nine months ending September 30, JA Solar Holdings reported net income of RMB55 million (US$7 million) on total revenues of RMB347.0 million (US$43.9 million).

JA Solar

Formed in 2005, JA Solar Holdings has about 564 employees.

JA Solar

Underwriters: CIBC World Markets and Piper Jaffray are the joint-lead managers. Acting as co-managers are Needham and RBC Capital Markets.

lead managers. Acting as co-managers are Needham and RBC Capital Markets.

Selected Principal Shareholders: Jinglong Group, Marlins Fame Limited, Si Fab International, and Improve Forever Investments Limited

52-Week Percentage Change:

Dow Jones U.S. Electrical Component & Equipment Index: up 6.75 percent

U.S.

Nasdaq Composite Index: up 8.19 percent

—Mellanox Technologies, a Yokneam, Israel-based fabless semiconductor company providing high-performance interconnect technology, plans to price 6 million ordinary shares at $12 to $14 each to raise $78 million. The IPO is to start trading on Thursday.

Mellanox Technologiesplans to price 6 million ordinary shares at $12 to $14 each to raise $78 million. The IPO is to start trading on Thursday.

For the nine months ending September 30, Mellanox Technologies reported net income of $3.4 million on total revenues of $32.7 million, compared with net income of $1.9 million on total revenues of $29.9 million for the same period a year ago.

Mellanox Technologies

As of September 30, Mellanox Technologies reported an accumulated deficit of $73.1 million.

Mellanox Technologies

Formed in 1999, Mellanox Technologies has about 148 full-time employees and about 23 part-time employees.

Mellanox Technologies

Underwriters: Credit Suisse and JPMorgan are the joint-lead managers. Acting as co-managers are Thomas Weisel Partners and Jefferies.

lead managers. Acting as co-managers are Thomas Weisel Partners and Jefferies.

Selected Principal Shareholders: Bessemer Venture Partners, Intel Atlantic, Sequoia Capital Partners, and U.S. Venture Partners

52-Week Percentage Change:

Dow Jones U.S. Semiconductors Index: down 8.13 percent

U.S.

Nasdaq Composite Index: up 8.19 percent

—National CineMedia is a Centennial, Colorado-based operator of the largest digital in-theater network in North America. The company distributes advertising and other content for its digital content network. The company’s network services about 13,000 screens in 46 states and the District of Columbia, which covered about 500 million patrons or about 36 percent of the total U.S. theater attendance in 2005.

National CineMedia North America

National CineMedia plans to price 38 million shares at $18 to $20 each to raise $722 million. The IPO is to start trading on Thursday.

For the year ending December 31, National CineMedia reported a pro forma net loss of $5.2 million on pro forma total revenues of $116.8 million, compared with net income of $20.6 million on total revenues of $95.3 million for the same period a year ago.

National CineMedia

As of September 30, National CineMedia reported an accumulated deficit of $900,000.

National CineMedia

Formed in 2005, National CineMedia has about 447 employees.

National CineMedia

Underwriters: Credit Suisse, JPMorgan, Lehman Brothers, and Morgan Stanley are the joint-lead managers. Acting as co-managers are AGM Securities, Allen, Banc of America, Bear Stearns, Citigroup, Deutsche Bank, Goldman Sachs, Merrill Lynch, and UBS Investment Bank.

lead managers. Acting as co-managers are AGM Securities, Allen, Banc of America, Bear Stearns, Citigroup, Deutsche Bank, Goldman Sachs, Merrill Lynch, and UBS Investment Bank.

Selected Principal Shareholders: AmericanMulti-Cinema, Cinemark Media, Madison Dearborn Capital Partners, Regal CineMedia Holdings, and The Anschutz Co.

52-Week Percentage Change:

Dow Jones U.S. Media Agencies Index: up 23.9 percent

U.S.

Nasdaq Composite Index: up 8.19 percent

—Switch and Data, a Tampa, Florida-based provider of network neutral interconnection and colocation services to Internet-dependent businesses, including telecommunications carriers, Internet service providers, online content providers, and enterprises, plans to price 11.7 million shares at $14 to $16 each to raise $175 million. The company will offer 9 million shares and selling shareholders will offer 2.7 million shares.The IPO is to start trading on Thursday.

For the nine months ending September 30, Switch and Data reported a net loss of $10 million on revenues of $82.5 million, compared with a net loss of $7.3 million on revenues of $78.7 million for the same period a year ago.

Switch and Data

As of September 30, Switch and Data reported an accumulated deficit of $208.9 million.

Switch and Data

Formed in 1998, Switch and Data has about 272 employees.

Switch and Data

Underwriters: Deutsche Bank and Jefferies are the joint-lead managers. Acting as co-managers are CIBC World Markets, RBC Capital Markets, Raymond James, Lazard Capital Markets, and Merriman Curhan Ford.

lead managers. Acting as co-managers are

Selected Principal Shareholders: The CapStreet Group, Seaport Capital, and Tudor Ventures

52-Week Percentage Change:

Dow Jones U.S. Computer Services Index: up 20.4 percent

U.S.

Nasdaq Composite Index: up 8.19 percent

—U.S. Auto Parts Network, a Carson, California-based online provider of aftermarket auto parts, such as body parts, engine parts, performance parts, and accessories, plans to price 10 million shares at $10 to $12 each to raise $110 million. The company will offer 8 million shares and selling shareholders will offer 2 million shares.The IPO is to start trading on Friday.

For the nine months ending September 30, U.S. Auto Parts Network reported net income of $3.6 million on net sales of $83.5 million, compared with net income of $4.8 million on net sales of $44 million for the same period a year ago.

U.S. Auto Parts Network

Formed in 1995, U.S. Auto Parts Network has about 218 employees.

U.S. Auto Parts Network

Underwriters: RBC Capital Markets and Thomas Wiesel Partners are the joint-lead managers. Acting as co-managers are Piper Jaffray and JMP Securities.

lead managers. Acting as co-managers are Piper Jaffray and JMP Securities.

Selected Principal Shareholder: Oak Investment Partners

52-Week Percentage Change:

Dow Jones U.S. Specialty Retailers Index: up 7.82 percent

U.S.

Nasdaq Composite Index: up 8.19 percent

—VeriChip, a Delray Beach, Florida-based provider of radio frequency identification, or RFID, systems used to identify, locate, and protect people and assets, plans to price 4.3 million shares at $6.50 to $8.50 each to raise $32.3 million. The IPO is to start trading on Thursday.

Delray Beach, Florida-based provider of

For the nine months ending September 30, VeriChip reported a net loss of $3.5 million on revenues of $19.1 million, compared with a net loss of $2.7 million on revenues of $8.5 million for the same period a year ago.

VeriChip

As of September 30, VeriChip reported an accumulated deficit of $13.8 million.

VeriChip

Formed in 2001, VeriChip has about 172 employees.

VeriChip

Underwriters: Merriman Curhan Ford & Co. is the lead manager. Acting as co-managers are C.E. Unterberg, Towbin, and Kaufman Bros. LP.

lead manager. Acting as co-managers are

Selected Principal Shareholder: Union Street Capital Management

52-Week Percentage Change:

Dow Jones U.S. Electronic Equipment Index: up 12.6 percent

U.S.

Nasdaq Composite Index: up 8.19 percent

The Pharmaceuticals:

—Optimer Pharmaceuticals is a San Diego, California-based biopharmaceutical company developing anti-infective products focusing on products that treat gastrointestinal infections and related diseases where current therapies have limitations. Optimer plans to price 5.25 million shares at $12 to $14 each to raise $68.3 million. The IPO is to start trading on Thursday.

Optimer Pharmaceuticals biopharmaceutical company developing anti-infective products focusing on products that treat gastrointestinal infections and related diseases where current therapies have limitations. Optimer plans to price 5.25 million shares at $12 to $14 each to raise $68.3 million. The IPO is to start trading on Thursday.

For the nine months ending September 30, Optimer Pharmaceuticals reported a net loss of $8.1 million on collaboration and grant revenues of $847,000, compared with a net loss of $5.5 million on collaboration and grant revenues of $1.5 million for the same period a year ago.

Optimer Pharmaceuticals

As of September 30, Optimer Pharmaceuticals reported an accumulated deficit of $47.5 million.

Optimer Pharmaceuticals

Formed in 1998 Optimer Pharmaceuticals has about 39 employees.

ptimer Pharmaceuticals

Underwriters: Piper Jaffray and Jefferies are the joint-lead managers. Acting as co-managers are JMP Securities and Rodman and Renshaw.

lead managers. Acting as co-managers are JMP Securities and Rodman and Renshaw.

Selected Principal Shareholders: Par Pharmaceutical, Formosa Healthcare Investments, ProQuest Investments, and BB Biotech Ventures

—3SBio, a Shenyang, China-based fully integrated, profitable biotechnology company developing biopharmaceutical products primarily in China, plans to price 7.7 million American Depositary Shares (ADS) representing 53.9 million ordinary shares at $12 to $14 each to raise $100.1 million. The company will offer 7.2 million ADS and selling shareholders will offer 500,000 ADS.The IPO is to start trading on Wednesday.

For the year ending December 31, 3SBio reported net income of RMB16.1 million (US$2 million) on total revenues of RMB102 million (US$12.9 million), compared with net income of RMB6.6 million on total revenues of RMB77.2 million for the same period a year ago.

3SBio

Formed in 1993, 3SBio has about 308 employees.

3SBio

Underwriters: UBS Investment Bank is the lead manager. Acting as co-managers are CIBC World Markets and Pacific Growth Equities.

lead manager. Acting as co-managers are CIBC World Markets and Pacific Growth Equities.

Selected Principal Shareholders: Achieve Well International Limited, Happyview Finance Limited, Lan’s Holdings Limited, Pacven Walden Ventures, Starry Investments Limited, W&W International Investments Limited, Witty Mind International Limited, and Precious Winwin Limited

—Synta Pharmaceuticals is a Lexington, Massachusetts-based biopharmaceutical company developing small-molecule drugs that address severe medical conditions with large potential markets such as cancer and chronic inflammatory diseases. Synta plans to price 6 million shares at $14 to $16 each to raise $90 million. The IPO is to start trading on Tuesday.

Lexington, Massachusetts-based

Since its inception in 2000, Synta has generated about $1.6 million in revenues. It had an accumulated deficit of $225.1 million on September 30.

Synta Pharmaceuticals has about 141 employees.

Underwriters: Bear Stearns and Lehman Brothers are the joint-lead managers. Acting as co-managers are Lazard Capital markets and Montgomery.

lead managers. Acting as co-managers are Lazard Capital markets and Montgomery.

Selected Principal Shareholder: CxSynta LLC

52-Week Percentage Change:

Dow Jones U.S. Pharmaceuticals Index: up 11.7 percent

U.S.

Nasdaq Composite Index: up 8.19 percent

The “Blank Checks” Carryover

—Union Street Acquisition is an Alexandria, Virginia-based “blank check” company recently formed for the purpose of acquiring through a merger, capital stock exchange, stock purchase, asset acquisition, or other similar business combination, an operating business in the business services industry. The company has no specific business combination under consideration. The company plans to price 12.5 million units consisting of one share of common stock and one warrant at $8 each. The units are expected to trade during the week of February 5. The underwriters are Banc of America Securities and Morgan Joseph.