This week’s new-issues calendar reflects what has been barreling down the IPO Expressway lately: technology and China. This is where the action is.

The IPO calendar for the week of March 12 has four deals that are looking to raise about $555 million. Among them are two technology deals and a China-based pharmaceutical company.

As of Friday morning, March 9, bankers have priced 31 IPOs this year, according to available reports. Of that number, 14 were from the technology-related sector. And two were among 2007’s top aftermarket performers.

They were: Accuray, a Sunnyvale, California-based maker of the CyberKnife system used to treat solid tumors as an alternative to traditional surgery—yes, it’s technology—and JA SolarHoldings, a Ningjin, China-based manufacturer of high-performance solar cells—yes, that’s technology and China.

Accuray priced 16 million shares at $18 each on February 7. The IPO sold at a high of $31.09 on February 9, and closed on Thursday, March 8, at $24.86, up 38.1 percent from its initial offering price.

JA Solar Holdings priced 15 million shares at $15 each on February 6. The IPO sold at a high of $21.10 on February 23, and closed Thursday, March 8, at $19.80, up 32 percent from its initial offering price.

JA Solar was the last Chinese IPO to make its debut in the United States capital markets until this morning, Friday, March 9.

—Xinhua Finance Media, a Shanghai-based media company that provides financial news and data in China, priced 23.1 million shares at $134 each.

This week’s technology companies going public are BigBand Networks and Photowatt Technologies. And the Chinese deal is Tongjitang Chinese Medicines.

BigBand Networks and Accuray have something else in common besides the technology sector. That common thread can be found in their respective profit-and-loss statements.

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

Accuray turned the corner to profitability.

For the three months ending September 30, Accuray reported total revenue of $32.8 million, compared with total revenue of $3.9 million for the same period a year ago. That was up 741 percent.

Accuray’s revenue was soaring.

BigBand Networks reported net income of $8.9 million for the three months ending December 31, compared with a net loss of $5.8 million for the same period a year ago.

BigBand turned the corner to profitability.

For the three months ending December 31, BigBand Networks reported total revenue of $63 million, compared with total revenue of $26.7 million for the same period a year ago. That was up 136 percent.

BigBand’s revenue was soaring.

This might be a reason why some are calling BigBand Networks “the pick of the week.”

But investors might have to wait until the end of the week to see most of the fireworks. All but BigBand are scheduled to be priced Thursday evening to be traded in Friday’s market. BigBand is expected to be priced Tuesday evening to trade in Wednesday’s market.

Inside This Week’s IPO Calendar

This week’s IPO calendar lists four deals:

The New Faces

A broadband provider (BigBand Networks)

A commodity-trading firm (FCStone Group)

A solar cell manufacturer (Photowatt Technologies)

A Chinese pharmaceutical company (Tongjitang Chinese Medicines)

They are expected to raise about $555 million.

Company Profiles

—BigBand Networks is a Redwood City, California-based provider of network-based technology. Its products enable cable operators and telephone companies to offer video, voice, and data services across coaxial, fiber, and copper networks. The company believes it was the first to implement what has become the industry’s de facto network architecture for digital simulcast. Its product applications of digital simulcast, telco TV, switched broadcast, and high-speed data and voice over IP are a combination of modular software, programmable video, and data hardware.

BigBand Networks plans to price 7.5 million shares at $10 to $12 each to raise $117.7 million. The company will offer 7.5 million shares and selling shareholders will offer 3.2 million shares.The IPO is to start trading on Wednesday.

For the year ending December 31, BigBand Networks reported net income of $8.9 million on total revenue of $176.6 million, compared with a net loss of $25.5 million on total revenue of $98 million for the same period a year ago.

As of December 31, BigBand Networks reported an accumulated deficit of $111.3 million.

Formed in 1998, BigBand Networks has about 562 employees.

Underwriters: Morgan Stanley and Merrill Lynch are the joint-lead managers. Acting as co-managers are Jefferies, Cowen, and ThinkEquity Partners.

Selected Principal Shareholders: Redpoint Ventures, Charles River Partners, Meritech Capital, Evergreen Partners, Pilot House Ventures, Cedar Funds, Time Warner, Star Ventures, and High Street Investors

52-Week Percentage Change:

Dow Jones U.S. Telecommunications Equipment Index: up 0.03 percent

Nasdaq Composite Index: up 6.13 percent

—FCStone Group is a West Des Moines, Iowa-based commodity risk management company. FCStone provides risk management consulting and transaction execution services to more than 7,500 commercial commodity intermediaries, end users, and producers.

FCStone Group plans to price 4.64 million shares at $21 to $24 each to raise $104.3 million. The IPO is to start trading on Friday.

For the three months ending November 30, FCStone Group reported net income of $6.3 million on total revenue of $499.7 million, compared with net income of $3.4 million on total revenue of $350 million for the same period a year ago.

Formed in 1968, FCStone Group has about 437 employees.

Underwriters: BMOC Capital Markets and Banc of America Securities are the joint-lead managers. Acting as co-managers are William Blair, Raymond James, and Sandler O’Neill.

52-Week Percentage Change:

Dow Jones U.S. Investment Services Index: up 13.8 percent

Nasdaq Composite Index: up 6.13 percent

—Photowatt Technologies is an Ontario, Canada-based designer of solar cells and modules that provide clean renewable energy by converting sunlight into electricity through a process known as the photovoltaic effect. The company operates two segments. One is Photowatt International, its core business based on wafer technology. The other is Spheral Solar, a development project based on a spheral technology using thousands of tiny silicon spheres instead of silicon wafers.

Photowatt Technologies plans to price 10.9 million shares at $15 to $17 each to raise $175 million. The IPO is to start trading on Friday, March 16, 2007.

For the nine months ending December 31, Photowatt Technologies reported a net loss of $6.5 million on total revenue of $99.4 million, compared with a net loss of $144,000 on total revenue of $87.2 million for the same period a year ago.

Formed in 1979, Photowatt Technologies has about 681 employees.

Underwriters: BMO Capital Markets and UBS Investment Bank are the joint-lead managers. Acting as co-managers are Cowen, GMP Securities, Scotia Capital, and Sprott Securities.

52-Week Percentage Change:

Dow Jones U.S. Electric & Components Index: up 4.10 percent

Nasdaq Composite Index: up 6.13 percent

—Tongjitang Chinese Medicines is a Shenzhen, China-based specialty pharmaceutical company focusing on developing modernized traditional Chinese medicine. The company believes it is the leading provider of traditional Chinese medicine to treat osteoporosis in China.

Tongjitang Chinese Medicines plans to price 9.87 million shares at $15 to $17 each to raise $157.8 million. The IPO is to start trading on Friday, March 16, 2007.

For the year ending December 31, 2006, Tongjitang Chinese Medicines reported net income of RMB134.3 million ($17.2 million) on net revenue of RMB485 million ($62.1 million), compared with net income of RMB110.8 million ($14.3 million) on net revenue of RMB364 million ($47 million) for the same period a year ago.

Formed in 1995, Tongjitang Chinese Medicines has about 1,654 employees.

Underwriters: Merrill Lynch and UBS Securities are the joint-lead managers. Acting as co-managers are CIBC World Markets.

Selected Principal Shareholders: Hanmax Investment, Samtung Investment, Lodway Investment, Yangtse Holdings, Paraway Investment, and ML Funds

52-Week Percentage Change:

Dow Jones U.S. Pharmaceuticals Index: up 5.72 percent

By John E. Fitzgibbon, Jr.

The news from the world’s financial capitals this week was bad. Nevertheless, the forward IPO calendar coming from Wall Street was good—no, make it great. Here’s the backdrop:

On Tuesday, the Dow Jones Industrial Average lost 416 points to close at 12,216.24. That was a drop of 3.29 percent from Monday’s close of 12,632.26.

That was a pretty big cloud that rolled over Wall Street. But here’s the silver lining. Neither the point loss nor the percentage decline were anywhere near records.

There have been five times the Dow Jones Industrial Average has given up more than 500 points in a single day, according to available records. They are:

On September 17, 2001, the DJIA fell 684.81 points, off 7.13 percent from its previous close of 9,605.51.

On April 14, 2000, the DJIA fell 617.78 points, off 5.66 percent from its previous close of 10,305.77.

On October 27, 1997, the DJIA fell 554.26 points, off 7.18 percent from its previous close of 7,715.41.

On August 31, 1998, the DJIA fell 512.61 points, off 6.37 percent from its previous close of 8,051.68.

On October 19, 1987, the DJIA fell 508.32 points, off 22.6 percent from its previous close of 2,246.73.

Tuesday’s 3.29 percent decline didn’t even rank in the top 20. The sharpest single-day loss was

December 12, 1914. The Dow lost 24.4 percent to close at 54 that day, down from its previous close of 71.42.

No. 20 on the sharpest percentage decline list is January 8, 1988. The Dow lost 6.85 percent to close at 1,911.31, down from its previous close of 2,051.89.

Some experts think the underlying stock market may be bumpy over the near future. But there’s reason to take heart.

Tuesday’s stock market decline jumped to the front page from the business section of most newspapers. Normally, that’s a reverse indication of better times ahead.

Warming Up

The outlook for the IPO market is starting to look good.

First, it is coming out of a “seasonal slowdown period” that runs from mid-February into early March. From February 15 through March 1, only one IPO was priced. That’s the bad news.

The good news? There are five deals on the calendar for the week of March 5. It includes two carryovers from last week. Bankers are expecting to raise slightly over $1 billion.

Next, 2007’s aftermarket performance has been outstanding. Consider this: As of March 1, bankers had priced 28 IPOs (excluding 11 unit offerings).

On Thursday, 19 of those 28 IPOs closed above their initial offering prices. They had an average gain of 13.7 percent.

This was a very favorable comparison with the Nasdaq Composite Index. It closed Thursday at 2,404.21, down 0.46 percent for the year.

But the IPO news gets better.

Since October 18, bankers have priced 100 IPOs and, on Thursday, 73 of them closed above their initial offering prices. They had an average gain of 25.2 percent, compared with a 2.87 percent gain by the Nasdaq Composite Index.

This week, the 2007 IPO calendar starts to come back to life after its mid-February slowdown. Bankers are planning to price three IPOs, plus a “blank check.” That’s more than what has been priced over the previous two weeks.

Each of this week’s three new faces are high-profile deals. All are reportedly in demand from investors. Each has attracted some buzz as a “hot issue.”

If all three do as well as the experts think and the stock market holds up, then we’ll be in for a good ride on the IPO train.

Inside This Week’s IPO Calendar

This week’s IPO calendar lists five deals, including two carryovers from last week.

The new faces

A Chinese news media company (Xinhua Finance Media)

A network security provider (Sourcefire)

A wireless equipment provider (Clearwire)

The carryovers

The blank check: (Symmetry Holdings)

A pharmaceutical (OncoGenex Technologies)

All five deals are expected to raise $1.1 billion.

Company Profiles

—Clearwire, based in Kirkland, Washington, builds and operates next-generation wireless broadband networks that offer fast, portable, and affordable Internet service to over 206,000 subscribers. Clearwire’s service is available in Alaska, Hawaii, California, Idaho, and eight other states, as well as in Belgium, Denmark, and Ireland.

Clearwire plans to price 20 million shares at $23 to $25 each to raise $480 million. The IPO is to start trading on Thursday.

For the year ending December 31, 2006, Clearwire reported a net loss of $284 million on total revenues of $100.2 million, compared with a net loss of $140 million on total revenues of $33.5 million for the same period a year ago.

As of December 31, 2006, Clearwire reported an accumulated deficit of $458.6 million.

Formed in 2003 by cell phone pioneer Craig O. McCaw, Clearwire has about 930 employees.

Underwriters: Merrill Lynch, Morgan Stanley, and JPMorgan are the joint-lead managers. Acting as co-managers are Wachovia Securities, Bear Stearns, Citigroup, Jefferies,Raymond James, ThinkEquity Partners, and Stifel Nicolaus.

Selected Principal Shareholders: EagleRiver Holdings, Intel, Motorola, BellCanada, andOB Wireless LLC.

52-Week Percentage Change:

Dow Jones U.S.Mobile Telecommunications Index: up 2.43 percent

Nasdaq Composite Index: up 4.02 percent

—Sourcefire, based in Columbia, Maryland, provides network security technology designed to detect and block hackers. It is best known for Snort, one of the industry’s leading open source intrusion detection products.

Sourcefire plans to price 5.77 million shares at $12 to $14 each to raise $75 million. The company will offer 5.32 million shares and selling shareholders will offer 450 billion shares.The IPO is to start trading on Friday.

For the year ending December 31, 2006, Sourcefire reported a net loss of $932,000 on total revenues of $44.9 million, compared with a net loss of $5.5 million on total revenues of $32.9 million for the same period a year ago.

As of December 31, 2006, Sourcefire reported an accumulated deficit of $38.9 million.

Formed in 2001, Sourcefire has about 182 employees.

Underwriters: Morgan Stanley and Lehman Brothers are the joint-lead managers. Acting as co-managers are UBS Investment Bank and Jefferies.

Selected Principal Shareholders: Core Capital Partners and entities affiliated with Sequoia Capital.

52-Week Percentage Change:

Dow Jones U.S. Software Index: up 8.08 percent

Nasdaq Composite Index: up 4.02 percent

—Xinhua Finance Media, based in Shanghai, is a media company that provides financial news and data in China. The company has ties to Xinhua News Agency, the state-controlled news agency of China.

Xinhua Finance Media plans to price 23.1 million shares at $12 to $14 each to raise $300 million. The company will offer 17.3 million shares and selling shareholders will offer 5.8 million shares.The IPO is to start trading on Friday.

For the year ending December 31, 2006, Xinhua Finance Media reported net income of $5.7 million on total net revenues of $59 million, compared with pro forma net income of $466 billion on total net revenues of $5.7 million for the same period a year ago.

Formed in 2005, Xinhua Finance Media has about 623 employees.

Underwriters: JPMorgan and UBS Investment Bank are the joint-lead managers. Acting as co-managers are CIBC World Markets, WR Hambrecht + Co., and ABN AMRO Rothschild.

Selected Principal Shareholders: Xinhua Finance Limited, Patriarch Partners Media Holdings, Sino Investment Holdings Limited, Dragon Era Group Limited, and Honour Rise Services Limited.

52-Week Percentage Change:

Dow Jones U.S. Publishing Index: up 4.57 percent

Nasdaq Composite Index: up 4.02 percent

The Carryovers

—OncoGenex Technologies is a Vancouver, Canada-based biopharmaceutical company developing new cancer therapies to address treatment resistance in cancer patients. The company has three products in development designed to selectively inhibit the production of proteins associated with treatment resistance.

OncoGenex Technologies now plans to price 5 million shares at $7.50 to $8.50 each to raise $40 million. The deal was reduced from 4.5 million shares at $10 to $12 each to raise $49.5 million. The IPO is to start trading during the week of March 5.

Formed in 2000, OncoGenex Technologies has never generated any revenues. As of September 30, it reported an accumulated deficit of $26.7 million.

OncoGenex Technologies has about 25 employees.

Underwriters: RBC Capital Markets is lead manager. Acting as co-managers are Needham, Lazard Capital Markets, Canaccord Adams, and Susquehanna Financial Group.

Selected Principal Shareholders: Ventures West 7 Limited Partnership, H.I.G. Horizon, Working Opportunity Fund (EVCC), BDC Capital, and Milestone Medica.

52-Week Percentage Change:

Dow Jones U.S. Pharmaceutical Index: up 6.04 percent

Nasdaq Composite Index: up 4.02 percent

—Symmetry Holdings, of Briarcliff Manor, New York, is a “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, businesses in North America that are in or are suppliers to the basic industries sector, including energy and energy-related infrastructure.

The company plans to price 18.8 million units consisting of one share of common stock and one warrant at $6 each. The units are expected to trade on Tuesday.

By John E. Fitzgibbon, Jr.

Wall Street’s investment bankers are reaching across the United States borders to bring us an IPO calendar this week. There are only two companies scheduled to go public, one based in Canada and the other in Israel.

They are OncoGenex Technologies (Canada) and Rosetta Genomics (Israel).

If you wish to count the “blank check” companies in the IPO vineyard, then this week’s IPO traffic swells to four deals. One blank check deal is new to the calendar and the other is a carryover from last week.

And if all four deals get done, bankers hope to raise $329.5 million. Though that dollar amount is small by Wall Street’s standards, the companies going public touch on two things it’s hard to do without these days—drugs and money.

Pricing dates for the blank check companies have always been problematical. There’s a general consensus among their underwriters that every time they think they have gotten the green light from the U.S. Securities and Exchange Commission to go ahead and price the deal, the agency comes back with more questions.

That causes delays and the reason that blank check deals are listed as “the week of … ” instead of a pricing date.

Now let’s take a look at this week’s current offerings. Both are pharmaceutical companies, except one calls itself a biopharmaceutical company.

Once again, the SEC played a hand in this week’s calendar. The Canadian IPO bills itself as a “biopharmaceutical” company and the Israeli one did not identify its industrial sector. But the SEC did.

The agency classified both companies as “pharmaceutical” and assigned each the Standard Industrial Classification code number of 2834 for pharmaceutical.

Many who follow the IPO market confuse pharmaceutical companies with biotech companies. The SEC’s Standard Industrial Classification, or SIC, code for the latter sector is 2836. Pharmaceuticals deal with drugs, while biotechs deal with genes.

Nevertheless, the opening-day performances of pharmaceutical/biotech/biopharmaceuticals IPOs are lackluster. They generally underperform the market. Consider the following opening-day performances:

In 2007 (through February 23)

Bankers priced 27 IPOs, according to available reports. This figure excludes 10 unit offerings, of which nine were “blank check” deals.

Number of pharmaceutical/biotech/biopharmaceutical IPOs: 4

Closed above their initial offering prices: 2

Closed below their initial offering prices: 2

Average opening-day gain: Minus 1 percent

Number of other IPOs: 23

Closed above their initial offering prices: 21

Closed below their initial offering prices: 2

Average opening-day gain: 17.8 percent

In 2006

Bankers priced 201 IPOs. This figure excludes 39 unit offerings, of which 38 were blank check companies.

Number of pharmaceutical/biotech/biopharmaceutical IPOs: 21

Closed above their initial offering prices: 12

Closed below their initial offering prices: 6

Closed unchanged from their initial offering prices: 3

Average opening-day gain: 6.3 percent

Number of other IPOs: 180

Closed above their initial offering prices: 134

Closed below their initial offering prices: 35

Closed unchanged from their initial offering prices: 11

Average opening-day gain: 14.1 percent

This week’s two pharmaceutical/biotech/biopharmaceutical IPOs have a few things in common. Each was formed in 2000, neither has generated any revenues, and each has accumulated deficits reaching into the millions of dollars.

It should come as no surprise that the buzz from the IPO players is that neither deal is in great demand.

Inside This Week’s IPO Calendar

This week’s IPO calendar lists two deals, or four counting the blank check companies.

The blank checks: Churchill Ventures and Symmetry Holdings

Two pharmaceuticals: OncoGenex Technologies and Rosetta Genomics

All four deals are expected to raise $329.5 million.

Company Profiles

—OncoGenex Technologies is a Vancouver, Canada-based biopharmaceutical company developing new cancer therapies to address treatment resistance in cancer patients. The company had three products in development, which are designed to selectively inhibit the production of proteins that are associated with treatment resistance and are over-produced in response to a variety of cancer treatments.

The company’s aim is to disable the tumor cell’s adaptive defenses, render the tumor cells susceptible to attack with a variety of cancer therapies, including chemotherapy, and facilitate tumor cell death.

OncoGenex Technologies plans to price 4.5 million shares at $10 to $12 each to raise $49.5 million. The IPO is to start trading on Wednesday.

Formed in 2000, OncoGenex Technologies has never generated any revenues. As of September 30, it reported an accumulated deficit of $26.7 million.

OncoGenex Technologies has about 25 employees.

Underwriters: RBC Capital Markets is lead manager. Acting as co-managers are Needham, Lazard Capital Markets, Canaccord Adams, and Susquehanna Financial Group

Selected Principal Shareholders: Ventures West 7 Limited Partnership, H.I.G. Horizon, Working Opportunity Fund (EVCC), BDC Capital, and Milestone Medica Corp.

—Rosetta Genomics Ltd.is a Rehovot, Israel-based development-stage company seeking to develop and commercialize new diagnostic and therapeutic products based on a recently discovered group of genes known as microRNAs.

MicroRNAs are produced using instructions encoded in DNA and are believed to play an important role in regulating protein production. The company claims to have filed patent applications potentially covering about 350 biologically validated human microRNAs and 48 biologically validated viral microRNAs. Rosetta believes it is the first commercial enterprise to focus on the emerging microRNA field.

Rosetta Genomics plans to price 3.75 million shares at $7.50 to $8.50 each to raise $30 million. That is below the 3 million shares at $11 to $13 each to raise $36 million originally filed on September 1, 2006. The IPO is to start trading on Tuesday.

Formed in 2000, Rosetta Genomics has never generated any revenues. As of September 30, it reported an accumulated deficit of $18.7 million.

Rosetta Genomics has about 37 employees.

Underwriters: C.E. Unterberg, Towbin is the lead manager. Acting as the co-manager is Oppenheimer.

Selected Principal Shareholders: Kadima Hi-Tech Ltd., Harmony 2000, Instanz Nominees Pty Ltd., and Insight Capital Ltd

52-Week Percentage Change:

Dow Jones U.S. Pharmaceutical Index: up 8.86 percent

Nasdaq Composite Index: up 10.8 percent

The “Blank Checks”

—Churchill Ventures, of Scarborough, New York, is a 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 communications, media or technology industries.

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 26. The underwriter is Banc of America Securities.

—Symmetry Holdings, of Briarcliff Manor, New York, is a 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, businesses in North America that are in or are suppliers to the basic industries sector, including energy and energy-related infrastructure.

By John E. Fitzgibbon, Jr.

Now would be a good time for IPO players to skip out of town for a winter vacation. The only deal on the calendar this week is a “blank check” offering and the following week doesn’t show much more. There’s another “blank check” deal and two small biopharmaceuticals.

But don’t be so fast as to write off the new-issues market. It’s only a seasonal lull, and the future started building in mid-February.

This year’s IPO market is following the same path that it has in over the recent past. Consider this:

In 2006, bankers had priced 37 IPOs by February 15, according to available reports. Three more IPOs were priced by the end of February. In 2006, bankers priced a total of 240 IPOs for the entire year.

In 2005, bankers had priced 38 IPOs by February 17. One more IPO was priced by the end of February. In 2005, bankers priced a total of 236 IPOs.

In 2004, bankers had priced 23 IPOs by February 13. Three more IPOs were priced by the end of February. In 2004, bankers priced a total of 248 IPOs.

And this year, 2007, bankers have priced 37 IPOs by February 15. There are four more IPOs on the forward IPO calendar.

A Little Groundwork

In the meantime, bankers were seeding the IPO vineyard last week.

During the week of February 12, 16 companies filed plans to go public. That was almost as many new filings that had been done during this year’s first six weeks. By the close of business on Friday, February 9, a total of 19 companies had filed to go public.

The largest of last week’s 16 IPOs was Solera Holdings, a San Ramon, California-basedprovider of software and services to the automobile insurance claims processing industry. Here are the offering’s details:

—Solera filed for an IPO to raise $460 million on February 12. For the three months ending September 30, the company reported a net loss of $17.9 million on total revenues of $111.5 million.

Formed in 1966, Solera Holdings has about 2,136 employees. The underwriters are Goldman Sachs, JPMorgan, Citigroup, Deutsche Bank, and Lehman Brothers. A selected principal shareholder is GTCR Funds.

But there were many more IPOs. And among the more interesting filings: Cavium Networks, a Mountain View, California-based provider of integrated semiconductor processors that enable intelligent networking, communications, and security applications, and ShoreTel, a Sunnyvale, California-based provider of IP telecommunications systems that enable multi-site enterprises to be served by a single telecommunications system. Here are the details on each.

—Cavium Networks filed for an IPO to raise $86.3 million on February 13. For the year ending December 31, 2006, the company reported a net loss of $9 million on total revenues of $34.2 million, compared with a net loss of $11.7 million on total revenues of $19.4 million for the same period a year ago.

Formed in 2000, Cavium Networkshas about 157 employees. The underwriters are Morgan Stanley, Lehman Brothers, Thomas Weisel Partners, Needham, and JMP Securities. The selected principal shareholders are Menlo Ventures, Alliance Ventures, Diamondhead Ventures, and NeoCarta.

—ShoreTel filed for an IPO to raise $85 million on February 12. For the three months ending September 30, the company reported net income of $1 million on total revenues of $20.4 million, compared with net income of $103,000 on total revenues of $11.2 million for the same period a year ago.

Formed in 1996, ShoreTel has about 223 employees. The underwriters are Lehman Brothers, JPMorgan, Piper Jaffray, JMP Securities, and Wedbush Morgan. The selected principal shareholders are Crosspoint Venture Partners, Foundation Capital, J.P. Morgan Direct Venture Capital, and Lehman Brothers Venture Partners.

One to Watch

And what’s an IPO Watch without mentioning a deal that is on somebody’s “Most Wanted” list? That one was filed the previous week.

It is TechTarget, a Needham, Massachusetts-based provider of specialized online content that brings together buyers and sellers of corporate information technology products. The company operates a network of about 35 web sites, each of which focuses on a specific IT sector, such as storage, security, or networking.

—TechTarget filed for an IPO to raise $75 million on February 7. For the nine months ending September 30, TechTarget reported operating income of $7.9 million on revenues of $55.9 million, compared with operating income of $4.7 million on total revenues of $48.5 million for the same period a year ago.

Formed in 1999, TechTarget has about 457 employees. The underwriters are Morgan Stanley, Lehman Brothers, Cowen, and Piper Jaffray. The selected principal shareholders are Technology Crossover Ventures and Polaris Venture Partners.

Inside This Week’s IPO Calendar

This week’s IPO calendar lists one deal. It is a “blank check” company (Symmetry Holdings). It is expected to raise $150 million.

Company Profile

--Symmetry Holdings, of Briarcliff Manor, New York, is a “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, businesses in North America that are in or are suppliers to the basic industries sector, including energy and energy-related infrastructure.

By John E. Fitzgibbon, Jr.

In the IPO market, a few tech companies have begun showing off the black ink on the bottom line. It’s Wall Street’s answer to that fashion favorite—the LBD, or little black dress.

Turning a profit is always in style on the Street. Opnext is a case in point. It’s one of five IPOs on the calendar for the coming week, when bankers hope to raise $619 million.

Opnext could very well wind up on everybody’s “Most Wanted” list. Based in Eatontown, New Jersey, Opnext provides optoelectronic components for high-speed fiber optic data and voice communications networks. The company was established in 2000 as a subsidiary of Hitachi.

What could make Opnext a sleeper is what the company chose to highlight in its prospectus. Opnext turned the corner on profitability—big time—in its fiscal third quarter ending December 31. For those three months, Opnext reported net income of $3.2 million on sales of $61.7 million, compared with a net loss of $4.1 million on sales of $38.6 million for the same period a year ago.

Put in perspective, Opnext reported a profit for its most recent quarter. That’s a swing from a loss in the year-ago period. Worth noting: Its sales jumped 60 percent.

A caveat: Opnext still has an accumulated deficit. It has reported losses for every year it’s been in business. From its inception in 2000 through December 31, 2006, Opnext had an accumulated deficit of more than $280 million. But that deficit has come down, due to the recent quarter’s profit.

Opnext plans to price 16.9 million shares at $13 to $15 each to raise $236.7 million.

Remember last week’s Accuray?TheSunnyvale, California-based company makes the CyberKnife, a robotic radiosurgery system.

Accuray turned the corner to profitability—big time—in 2006. For the nine months ending September 30, the company reported net income of $2 million on total revenues of $32.8 million, compared with a net loss of $10.2 million on total revenues of $3.9 million for the same period a year ago.

It, too, had a big loss. As of September 30, Accuray reported an accumulated deficit of nearly $119 million.

And what happened to its IPO?

Accuray priced 16 million shares at $18 each on Wednesday evening, February 7. That was well above its filing of 13.3 million shares at $12 to $14 each. On Thursday, Accuray closed its opening day at $28.47 per share, up 58.2 percent from its initial offering price.

And now, back to the present.

Inside This Week’s IPO Calendar

This week’s new-issues calendar lists five deals. Here are the industrial sectors:

The “blank check” company (Geneva Acquisition)

A fertilizer company (Converted Organics)

A high-speed network provider (Opnext)

An online human resources solution provider (Salary.com)

A real estate finance company (Quadra Realty Trust)

If everything gets priced, bankers expect to raise $619 million.

Company Profiles

—Converted Organics, of Boston, is a development-stage company seeking to use organic food waste as raw material to manufacture all-natural soil amendment products. The company plans to distribute its products in the agribusiness, turf management, and retail markets.

Converted Organics plans to price 2 million units at $5 to $6 each to raise $11 million. Each unit consists of one share of common stock, one Class A warrant, and one Class B warrant. The IPO is to start trading on Thursday.

Converted Organics has never generated any revenues since commencing operations in 2003. As of September 30, 2006, Converted Organics reported an accumulated deficit of $5.9 million.

Converted Organics has four employees.

Underwriters: Paulson Investment Co. is the lead manager. Acting as co-managers are Investors Capital and National Securities.

Selected Principal Shareholder: Weston Solutions

52-Week Percentage Change:

Dow Jones U.S. Specialty Chemical Index: up 25.8 percent

Nasdaq Composite Index: up 9.41 percent

—Opnext plans to price 16.9 million shares at $13 to $15 each to raise $236.7 million. The IPO is to start trading on Thursday.

For the year ending March 31, 2006, Opnext reported a net loss of $30.5 million on sales of $138.4 million, compared with a net loss of $27.7 million on sales of $79.4 million for the same period a year ago.

For the nine months ending December 31, 2006, Opnext reported net income of $925,000 on sales of $157.5 million, compared with a net loss of $27.7 million on sales of $105.4 million for the same period a year ago.

Formed in 2000 as a subsidiary of Hitachi, Opnext has about 405 employees.

Underwriters: Goldman Sachs is the lead manager. Acting as co-managers are JPMorgan, CIBC World Markets, Cowen, and Jefferies.

Selected Principal Shareholders: Hitachi and Clarity Partners

52-Week Percentage Change:

Dow Jones U.S. Telecommunications Equipment Index: up 13.5 percent

Nasdaq Composite Index: up 9.41 percent

—Quadra Realty Trust, of New York City, is a newly organized, commercial real estate finance company. Quadra was formed to invest in commercial mortgage investments and related products.

Quadra Realty Trust plans to price 16.7 million shares at $15 to $17 each to raise $266.7 million. The IPO is to start trading on Thursday.

Underwriters: Credit Suisse and Wachovia are the joint-lead managers. Acting as co-managers are A.G. Edwards, KeyBanc Capital Markets, and Stifel Nicolaus.

Selected Principal Shareholders: Hypo Real Estate Capital

52-Week Percentage Change:

Dow Jones U.S. REIT Index: up 38.5 percent

Nasdaq Composite Index: up 9.41 percent

—Salary.com is a Waltham, Massachusetts-based provider of on-demand compensation management technology. The company offers systems to improve the effectiveness of its customers’ compensation spending.

Salary.com plans to price 5 million shares at $8 to $10 each to raise $45 million. The company will offer 4.2 million shares and selling shareholders will offer 800,000 million shares.The IPO is to start trading on Thursday.

For the year ending March 31, Salary.com reported a net loss of $3.1 million on total revenues of $13 million, compared with a net loss of $2.3 million on total revenues of $8.6 million for the same period a year ago.

For the six months ending September 30, Salary.com reported a net loss of $2 million on total revenues of $9.3 million compared with a net loss of $1.2 million on total revenues of $5.8 million for the same period a year ago.

As of September 31, Salary.com reported an accumulated deficit of $23.1 million.

Formed in 1999, Salary.com has about 190 employees.

Underwriters: Thomas Wiesel Partners and William Blair are the joint-lead managers. Acting as co-managers are Needham, Wachovia, and Pacific Crest Securities.

Selected Principal Shareholder: Lyric Ventures

52-Week Percentage Change:

Dow Jones U.S. Business and Employment Agencies Index: up 17.4 percent

Nasdaq Composite Index: up 9.41 percent

The “Blank Check”

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.

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.

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.

Formed in 1990, Accuray has about 386 employees.

Underwriters: JPMorgan and UBS Investment Bank are the joint-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

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.

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.

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

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.

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

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.

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).

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

Underwriters: CIBC World Markets and Piper Jaffray are the joint-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

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.

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.

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

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

Underwriters: Credit Suisse and JPMorgan are the joint-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

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 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.

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

Formed in 2005, National CineMedia has about 447 employees.

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.

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

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.

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

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

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.

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

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.

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

Underwriters: RBC Capital Markets and Thomas Wiesel Partners are the joint-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

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.

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.

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

Formed in 2001, VeriChip has about 172 employees.

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

Selected Principal Shareholder: Union Street Capital Management

52-Week Percentage Change:

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

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.

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.

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

Formed in 1998 Optimer Pharmaceuticals has about 39 employees.

Underwriters: Piper Jaffray and Jefferies are the joint-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.

Formed in 1993, 3SBio has about 308 employees.

Underwriters: UBS Investment Bank is the 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.

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.

Selected Principal Shareholder: CxSynta LLC

52-Week Percentage Change:

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

Nasdaq Composite Index: up 8.19 percent

The “Blank Checks” Carryover

One quick glance at today’s forward IPO calendar tells you all you need to know about the new-issues market.

Over the next two weeks, bankers have 19 new faces on the new-issues calendar. Last year, bankers priced 201 IPOs for an average of about eight deals over a two-week period.

This does not include the carryovers from last week.

The current IPO traffic breakdown is about evenly divided. This week, bankers have nine new faces on this week’s IPO calendar. Those deals are expected to raise about $1.47 billion. And for the following week, February 5, bankers have another 10 new faces on the IPO calendar. Those deals are expected to raise about $1.38 billion.

But there is a difference in what is going public.

This week’s offerings consist of a pharmaceutical company (Molecular Insight Pharmaceuticals) that’s been in the IPO pipeline since November 2005 and a development-stage medical equipment company (Xtent), plus the usual suspects. Those suspects are a handful of “blank check” companies and another oil and gas limited partnership.

The IPO calendar for the week of February 5 is a bit more interesting. It is sprinkled with technology companies.

Waiting in the wings to go public are such companies as a robotic surgery company (Accuray), an Israeli cellular service provider (Cellcom Israel), a Chinese solar cell producer (JA Solar), a networking products provider (Switch and Data), and others.

Checking the Pulse

Now let’s turn back to this week and the medical equipment and biopharmaceutical offerings.

In the past year, there has been a developing trend in pricing IPOs from those industrial sectors. It is the emergence of the old Econ 101 theory—supply versus demand.

When the supply (number of shares being offered at a given price range) is greater than the demand for the IPO (not enough buyers willing to pay the original offering price), then the terms have to be reduced to get the deal out the door. Once the supply side (the IPO) and the demand side (its buyers) are in tune, then the deal gets done at a lower price.

Consider the following: In 2006, bankers priced 33 IPOs from the medical equipment and biopharmaceutical sectors, according to available records. Of that number, 23 IPOs were priced below their original filing ranges.

And, in most cases, they lacked any aftermarket punch.

In 2006, bankers priced a total of 201 IPOs.

The 33 IPOs from the medical equipment and biotech sectors had an average opening-day gain of 6.4 percent.

The 168 IPOs from all the other industrial sectors had an average opening-day gain of 14.4 percent.

This isn’t to say that this week’s medical equipment and pharmaceutical IPOs will lack an aftermarket punch. But at press time, there haven’t been any signs of either being on anyone’s “most wanted” list.

However, this is Wall Street. Anything can happen.

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:

·          Three “blank check” companies (Dekania, Information Services Group, and Union Street)

·          An insurance company (Employers Holdings)

·          An oil and gas limited partnership (Duncan Energy Partners)

·          A medical equipment provider (Xtent)

·          A pharmaceutical company (Molecular Insight Pharmaceuticals)

·          A real estate services provider (HFF)

·          A veterinary products supplier (Animal Health International)

The carryovers:

·          Three “blank check” companies (China Health Care, NTR Acquisition, and Renaissance Acquisitions)

The bankers expect to raise $1.84 billion.

Company Profiles

—Animal Health International is a Westlake, Texas-based distributor of animal health products. The company sells over 35,000 products to more than 62,000 customers from 68 distribution locations strategically located across the United States and Canada.

Animal Health International plans to price 11.8 million shares at $10 to $12 each to raise $129.8 million. The company will offer 9.1 million shares and selling shareholders will offer 2.7 million shares. The IPO is to start trading on Wednesday.

For the three months ending September 30, 2006, Animal Health International reported net income of $901,000 on net sales of $145.7 million, compared with net income of $742,000 on net sales of $127.7 million for the same period a year ago.

Formed in 1954, Animal Health International has about 815 employees.

Underwriters: JPMorgan is the lead manager. Acting as co-managers are William Blair, Piper Jaffray, and Robert W. Baird.

Selected Principal Shareholder: Charlesbank Funds

52-Week Percentage Change:

Dow Jones U.S. Industrial Suppliers Index: down 8.59 percent

Nasdaq Composite Index: up 6.62 percent

—Duncan Energy Partners L.P. is a Houston-based limited partnership recently formed by Enterprise Products Partners to operate a diversified portfolio of midstream energy assets. The company gathers, transports, markets, and stores natural gas. It also transports and stores natural gas liquids and petrochemicals.

Duncan Energy Partners L.P. plans to price 13 million common units representing partnership interests at $19 to $21 each to raise $260 million. The IPO is to start trading on Tuesday.

The company plans an initial distribution of $0.40 per unit per quarter, or $1.60 per unit per year.

Underwriters: Lehman Brothers and UBS Investment Bank are the joint-lead managers. Acting as co-managers are Citigroup, Goldman Sachs, Morgan Stanley, and Wachovia.

Selected Principal Shareholder: Enterprise Product OLP

52-Week Percentage Change:

Dow Jones U.S. Pipeline Index: up 12.99 percent

Nasdaq Composite Index: up 6.62 percent

—Employers Holdings is a Reno, Nevada-based specialty provider of workers’ compensation insurance to select small businesses engaged in low- to medium-hazard industries. The company has historically targeted employers in several Western states, primarily California and Nevada.

Employers Holdings plans to price 23 million shares at $14 to $16 each to raise $345 million. The IPO is to start trading on Thursday, February 1.

For the nine months ending September 30, 2006, Employers Holdings reported net income of $116.5 million on total revenues of $359.2 million, compared with net income of $63.1 million on total revenues of $371 million for the same period a year ago.

Formed in 2000, Employers Holdings has about 628 employees.

Underwriters: Morgan Stanley is the lead manager. Acting as co-managers are Cochran Caronia Waller, Fox-Pitt Kelton, and Keefe Bruyette & Woods.

52-Week Percentage Change:

Dow Jones U.S. Full Line Insurance Index: up 5.83 percent

Nasdaq Composite Index: up 6.62 percent

—HFF is a Pittsburgh-based provider of commercial real estate and capital markets services to the real estate industry. The company operates 18 offices nationwide with more than 130 transaction professionals and about 270 support associates.

HFF plans to price 14.3 million shares at $15 to $17 each to raise $228.8 million. The IPO is to start trading on Wednesday.

For the nine months ending September 30, 2006, HFF reported net income of $31.7 million on total revenues of $156.5 million, compared with net income of $29 million on total revenues of $137.3 million for the same period a year ago.

Formed in 2006, HFF has about 408 employees.

Underwriters: Goldman Sachs and Morgan Stanley are the joint-lead managers. Acting as co-managers are Banc of America Securities, Wachovia Securities, and JPMorgan.

Selected Principal Shareholder: HFF Holdings LLC

52-Week Percentage Change:

Dow Jones U.S. Real Estate Development & Holding Index: up 35.6 percent

Nasdaq Composite Index: up 6.62 percent

—Molecular Insight Pharmaceuticals is a Cambridge, Massachusetts-based pharmaceutical company specializing in molecular medicine in improving patient healthcare by addressing unmet needs. The company is targeting radio therapeutics and molecular imaging pharmaceuticals with applications in the areas of oncology and cardiology.

Molecular Insight Pharmaceuticals plans to price 5 million shares at $14 to $16 each to raise $75 million. The IPO is to start trading during the week of January 29.

Formed in 1997, Molecular Insight Pharmaceuticals has never generated revenues. It had an accumulated deficit of $77 million on September 30.

The company has about 37 employees.

Underwriters: RBC Capital Markets and Jefferies are the joint-lead managers. Acting as co-managers are A.G. Edwards and Oppenheimer.

Selected Principal Shareholder: Cerberus Partners L.P.

52-Week Percentage Change:

Dow Jones U.S. Pharmaceutical Index: up 14.3 percent

Nasdaq Composite Index: up 6.62 percent

The “blank check” companies:

—Dekania is a Philadelphia-based “blank check” company recently formed to focus on identifying prospective targets in the insurance industry that are incorporated in the United States, Canada, Bermuda, or the Cayman Islands and that have substantially all of their business, and all of their insurance risk, in the United States.

The company plans to price 9.7 million units consisting of one share of common stock and one warrant at $10 each. The units are expected to trade during the week of January 29. The underwriters are Merrill Lynch and Maxim Group.

—Information Services Group is a Stamford, Connecticut-based “blank check” company recently formed for the purpose of effecting a merger, capital stock exchange, asset, stock acquisition, or other similar business combination with one or more domestic or international operating businesses engaged in the information services industry, including business, media, marketing, and consumer information opportunities.

The company plans to price 18.8 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 January 29. The underwriters are Deutsche Bank, Morgan Joseph, and Lazard Capital Markets.

—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 January 29. The underwriters are Banc of America Securities and Morgan Joseph.

The “Blank Checks” Carryovers

—China Healthcare Acquisition is a Pasadena, California-based “blank check” company recently formed to acquire one or more businesses with operations primarily in the People’s Republic of China. The company plans to price 8.5 million units consisting of one share of common stock and two warrants at $6 each. The units are expected to trade during the week of January 29. The underwriters are Ferris Baker Watts and Ladenburg Thalmann.

—NTR Acquisition is a Danbury, Connecticut-based “blank check” company recently formed to acquire one or more businesses with operations in refining, distributing, and marketing petroleum products in North America. The company plans to price 25 million units consisting of one share of common stock and one warrant at $10 each. The units are expected to trade during the week of January 29. The underwriters are Citigroup and Ladenburg Thalmann.

This week’s IPO calendar picks up where December’s left off. Investors will be able to select from technology, blank checks, and China when they look at the deals on this week’s new-issues launching pad.

When we last saw the IPO market chugging along in December, technology, blank checks, and Chinese IPOs were in play. About a month later, the formula is the same.

Bankers plan to price seven IPOs during the week of January 22. They expect to raise over $1 billion. For next week, January 29, they plan on pricing another seven IPOs. They expect to raise over another $1 billion.

That’s not a shabby start, especially if you take a look at this time a year ago.

For the week of January 23, 2006, bankers were looking to price six IPOs to raise $578.6 million, according to available reports. And, for the week of January 30, bankers were looking to price one IPO to raise $434.8 million.

Then it should come as no surprise to hear that bankers are expecting a big IPO year for 2007. That’s what the buzz is up and down Wall Street.

Stealth Play

Here’s the lowdown on this week’s IPO traffic:

AeroVironmentis said to be on everybody’s “Most Wanted” list. Based in Monrovia, California, AeroVironment is a manufacturer of technologically advanced small unmanned aircraft systems (UAS), which are sold to the U.S. Department of Defense.

The company designs its small UASs to be man-portable, capable of being launched by one person and operated through a handheld control unit. The unmanned aircraft systems are electrically powered and configured to carry electro-optical or infrared sensors.

They provide real-time situational awareness and intelligence, fly quietly at speeds up to 50 miles per hour, and travel up to 20 miles from their launch location on a modular, replaceable battery pack. These characteristics make them suited for reconnaissance, surveillance, target acquisition, and battle damage assessment operations.

There seems to be a marketplace for them. Consider the following:

For the fiscal year ended April 30, 2006, AeroVironment reported revenue of $139.4 million, income from operations of $15.9 million, and net income of $11.2 million.

For the fiscal year ended April 30, 2001, AeroVironment reported revenues of $45.8 million, income from operations of $2 million, and net income of $541,000.

On April 30, 2006, the company reported a funded backlog of $79.6 million, up from $70.4 million for the same period a year ago. AeroVironment’s unfunded backlog on April 30, 2006, was reported at $475.5 million, up from $262.8 million for the same period a year ago.

The rest of this week’s calendar is loaded with “blank check” companies, also known as Specified Purpose Acquisition Companies, or SPACs. There are three such offerings looking to raise $379 million. One was formed to acquire one or more business operations in China. It is China Healthcare Acquisition, but more on this below.

Inside This Week’s IPO Calendar

This week’s new-issues calendar lists seven deals, including a carryover from last week. Here are the industrial sectors:

Three “blank check” companies (China Healthcare Acquisition, NTR Acquisition, and Renaissance Acquisition)

A full-service real estate company (Meruelo Maddux Properties)

A fertilizer company (Converted Organics)

A medical device company—the carryover (Oculus Innovative Sciences)

An unmanned aircraft manufacturer (AeroVironment)

Bankers expect to raise $1.04 billion.

Company Profiles

—AeroVironment plans to price 6.7 million shares at $14 to $16 each. The company will offer 4.5 million shares and selling shareholders will offer 2.2 million shares.The IPO is to start trading on Wednesday.

For the year ending April 30, AeroVironment reported net income of $11.2 million on revenues of $139.4 million, compared with net income of $14.6 million on revenues of $14.2 million for the same period a year ago.

Formed in 1971, AeroVironment has about 447 employees.

Underwriters: Goldman Sachs is the lead manager. Acting as co-managers are Friedman Billings Ramsey, Jefferies Quarterdeck, Raymond James, Stifel Nicolaus, and Thomas Weisel Partners.

52-Week Percentage Change:

Dow Jones U.S. Defense Index: up 25.6 percent

Nasdaq Composite Index: up 6.14 percent

—Converted Organics is a Boston-based development-stage company seeking to use organic food waste as raw material to manufacture all-natural soil amendment products. The company plans to distribute its products in the agribusiness, turf management, and retail markets.

Converted Organics plans to price 2 million units at $5 to $6 each. Each unit consists of one share of common stock, one Class A warrant, and one Class B warrant. The IPO is to start trading on Friday.

Converted Organics has never generated any revenues since commencing operations in May 2003. As of September 30, 2006, Converted Organics reported an accumulated deficit of $5.9 million.

Converted Organics has four employees.

Underwriters: Paulson Investment Co. is the lead manager. Acting as co-managers are Investors Capital and National Securities.

Selected Principal Shareholder: Weston Solutions

52-Week Percentage Change:

Dow Jones U.S. Specialty Chemicals up 26.2 percent

Nasdaq Composite Index: up 6.14 percent

—Meruelo Maddux Properties is a Los Angeles-based full-service real estate company recently formed to develop, redevelop, and own commercial and residential properties in downtown Los Angeles and other urban markets in California. The company will own, lease with rights to purchase, and have rights to acquire interests in 34 development and redevelopment projects and 19 projects that have been developed.

Meruelo Maddux Properties plans to price 25 million shares at $12 to $14 each. The IPO is to start trading on Tuesday.

Underwriters: Friedman Billings Ramsey and UBS Investment Bank are the joint-lead managers. Acting as co-managers are KeyBanc Capital Markets, RBC Capital Markets, Baylock, Cabrera Capital Markets, and De La Rosa.

52-Week Percentage Change:

Dow Jones U.S. Real Estate Index: up 29.3 percent

Nasdaq Composite Index: up 6.14 percent

The “blank check” companies:

China Healthcare Acquisition is a Pasadena, California-based “blank check” company recently formed to acquire one or more businesses with operations primarily in China. The company plans to price 8.5 million units consisting of one share of common stock and two warrants at $6 each. The units are expected to trade during the week of January 22. The underwriters are Ferris Baker Watts and Ladenburg Thalmann.

NTR Acquisition is a Danbury, Connecticut-based “blank check” company recently formed to acquire one or more businesses with operations in refining, distribution, and marketing of petroleum products in North America. The company plans to price 25 million units consisting of one share of common stock and one warrant at $10 each. The units are expected to trade during the week of January 22. The underwriters are Citigroup and Ladenburg Thalmann.

Renaissance Acquisition is a Pompano Beach, Florida-based “blank check” company recently formed to acquire one or more businesses. The company does not have any specific business combination under consideration. The company plans to price 13 million units consisting of one share of common stock and one warrant at $6 each. The units are expected to trade during the week of January 22. The underwriters are Ladenburg Thalmann EarlyBird Capital.

The carryover:

—Oculus Innovative Sciences is a Petaluma, California-based pharmaceutical company that has developed products intended to help prevent and treat infections in chronic and acute wounds. The company’s main technology, Microcyn, is a non-toxic, electronically charged, or super-oxidized, water-based solution that is designed to treat a wide range of organisms that cause disease.

Oculus Innovative Sciences plans to price 3.5 million shares at $8 to $10 each to raise $31.5 million. The IPO is to start trading during the week of January 22.

As of September 9, 2006, Oculus Innovative Sciences reported an accumulated deficit of $59.3 million.

Formed in 1999, Oculus Innovative Sciences has about 76 employees.

Underwriters: Roth Capital is the lead manager. Acting as co-managers are Maxim Group and Brookstreet Securities.

Selected Principal Shareholder: Brookstreet Securities

52-Week Percentage Change:

Dow Jones U.S. Medical Equipment Index: down 0.7 percent

Since the start of the year, tech IPOs have been making news.

The first two companies to file plans to go public this year were from the technology sector: MetroPCS Communications and GSI Technology.

The timing of the MetroPCS filing was good. It came within a week of Apple’s long-awaited unveiling of the iPhone at the Consumer Electronics Show in Las Vegas. This could be a sign that 2007 may be the year when cell phone service and hardware became much easier to use—and a lot cooler.

The business of GSI Technology, on the other hand, is about providing speedy and energy-efficient memory products for computer networking and telecommunications equipment. This will be GSI Technology’s second attempt to go public.

Let’s take a look at the details of both deals:

—MetroPCS Communications kicked off the year with a blockbuster filing of $1.125 billion on January 4.

The Dallas-based company is a cell phone service provider on a no-long-term contract, flat-rate, unlimited usage basis in selected major metropolitan markets in the United States.

Formed in 2002, MetroPCS 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.

—GSI Technology filed for an IPO to raise $57.5 million on January 10.

The Santa Clara, California-based company is a provider of “very fast” static random access memory, or SRAM, products that are used in high-performance networking and telecommunications equipment, such as routers, switches, wide area network infrastructure equipment, wireless base stations and network access equipment.

GSI serves the needs of the military, industrial, test equipment and medical markets for high-performance SRAMs.Formed in 1995, GSI has about 100 employees.

For the six months ending September 30, 2006, GSI Technology reported net income of $4.5 million on net revenues of $28.9 million, compared with net income of $2.2 million on net revenues of $21.6 million for the same period a year ago.

The underwriters are Needham, WR Hambrecht+Partners, Robert W. Baird, and Stanford Group.

Selected principal shareholders are Ameroc, HolyStone Enterprises, Koowin, and WestTech Electronics.

For GSI, this will be the second time around the IPO block. On April 13, 2004, GSI filed for an IPO to raise $103.5 million. Its underwriters were Merrill Lynch, Needham, Friedman Billings Ramsey, and C.E. Unterberg Towbin. On November 10, 2005, the deal was withdrawn. Its joint-lead manager is now Needham.

If anyone noticed a slight breeze last week at the U.S. Securities and Exchange Commission’s filing window, that’s because there was some more action.

Strolling Toward the IPO Calendar

Two more technology companies posted proposed offering terms last week, but no pricing dates had been set at press time. They were National CineMedia and Xtent. Details:

—National CineMedia, of Centennial, Colorado, believes it operates the largest digital in-theater network in North America, allowing the company to distribute advertising and other content for its advertising, meetings, and events businesses using its proprietary digital content network.

The company filed on January 11 to price 38 million shares at $18 to $20 each to raise $722 million.

Organized in 2006, National CineMedia has about 447 employees.

The underwriters are Credit Suisse, JPMorgan, Lehman Brothers, Morgan Stanley, AGM Securities, Allen & Company, Banc of America Securities, Bear Stearns, Citigroup, Deutsche Bank Securities, Goldman Sachs, Merrill Lynch, and UBS Investment Bank.

Selected principal shareholders are AmericanMulti-Cinema, Cinemark Media, Madison Dearborn Capital Partners, Regal CineMedia Holdings, and The Anschutz Co.

—Xtent, of Menlo Park, California, is a development-stage medical device company working on innovative customizable drug-eluting stent systems to treat coronary artery disease. Xtent filed on January 11 to price 4.7 million shares at $16 to $185 each to raise $79.9 million.

Formed in 2002, Xtent has about 100 employees.

Xtent had never generated any revenues. As of September 30, 2006, Xtent reported an accumulated deficit of $60 million.

The underwriters are Piper Jaffray, Cowen, Lazard Capital Markets, and RBC Capital Markets.

Selected principal shareholders are Morgenthaler Partners, Advanced Technology Ventures,Latterell Venture Partners, and St. Paul Venture Capital.

Inside This Week’s IPO Calendar

This week’s new-issues calendar lists two deals. Here’s the industrial sector breakdown:

An oil and natural gas investment trust (MV Oil Trust)

A medical device company (Oculus Innovative Sciences)

The bankers expect to raise $181.5 million.

Company Profiles

—MV Oil Trust, based in Wichita, Kansas, was formed in August 2006, by MV Partners. Immediately before the closing of this offering, MV Partners will convey a term net profits interest to the trust that represents the right to receive 80 percent of the net proceeds from all of MV Partners’ interests in oil and natural gas properties in the trust.

MV Oil Trust plans to price 7.5 million trust units at $19 to $21 each to raise $150 million. The IPO is to start trading on Friday, January 19, 2007.

Underwriters: Raymond James & Associates is the lead manager. Acting as co-managers are A.G. Edwards, RBC Capital Markets, and Oppenheimer.

52-Week Percentage Change:

Dow Jones U.S. Exploration & Production Index: down 8.28 percent

Nasdaq Composite Index: up 6.58 percent

—Oculus Innovative Sciences is a Petaluma, California-based pharmaceutical company that has developed products intended to help prevent and treat infections in chronic and acute wounds. The company’s main technology, Microcyn, is a non-toxic, electronically charged, super-oxidized, water-based solution designed to treat a wide range of organisms that cause disease.

Oculus Innovative Sciences plans to price 3.5 million shares at $8 to $10 each to raise $31.5 million. The deal has been reduced from 3.1 million shares at $12 to $14 each to raise $40 million on January 3. The IPO is to start trading during the week of January 15.

As of September 9, 2006, Oculus Innovative Sciences reported an accumulated deficit of $59.3 million.

Formed in 1999, Oculus Innovative Sciences has about 76 employees.

Underwriters: Roth Capital is the lead manager. Acting as co-managers are Maxim Group and Brookstreet Securities.

Selected Principal Shareholder: Brookstreet Securities

52-Week Percentage Change:

Dow Jones U.S. Medical Equipment Index: down 2.12 percent

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 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.

—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.

—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.

—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.

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.

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.

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.

Formed in 2005, Legacy Reserves has about 24 employees.

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.

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

The 2006 IPO market rolled out of town this past week and there’s nothing on the calendar for the foreseeable future. But not to worry!

This is a seasonal factor. By the time Santa’s sleigh touches down, Wall Street looks like a ghost town. And while bankers dream up ways to blow their bonus money, the rest of us can look at December’s brisk IPO traffic for a clue about what to expect as we move into 2007.

Winter Wonderland

Dating back over the past decade, the earliest date for an IPO to make its debut was on January 8, 2004:

—K-Transportation, an East Brunswick, New Jersey-based provider of maritime transportation services to oil companies, refiners, and oil traders on the East Coast, priced its IPO of 3.6 million shares at $23.50 each.

On December 21, 2006, K-Transportation closed at $35.62, up 51.6 percent from its initial offering price.

In contrast, the latest date for the year’s first IPO to appear was on February 10, 2003:

—Bancshares of Florida, a Naples, Florida-based bank-holding company, priced its IPO of 900,000 shares at $10 each.

On December 21, 2006, Bancshares of Florida closed at $20.10, up 101 percent from its initial offering price.

In most years, bankers get back to business by mid-January and start pricing their IPOs.

In 2006, Linn Energy Partners, a Houston-based developer of gas and oil fields in the Appalachian Basin, priced 11.8 million shares at $21 each on January 12.

On December 21, 2006, Linn Energy closed at $33.28, up 58.5 percent from its initial offering price.

These examples show that it doesn’t really matter whether the year’s first IPO baby arrives early or late—or just about when you’d expect it. On Wall Street, it’s the numbers that matter most. No one shies away from gains of 50 percent or more.

Tech Stars and China

Two areas made a big impact in the IPO market in the closing days of December. They were technology and China.

During the week of December 11, bankers priced 18 IPOs, according to available reports. The top three winners were technology-related companies:

—Isilon Systems is a Seattle-based provider of clustered storage systems for digital content. Isilon priced its IPO of 8.4 million shares at $13 each on December 13. On Friday, December 15, the IPO closed at $23.10 per share, up 77.7 percent from its initial offering price.

A week later, on Thursday, December 21, Isilon closed at $26.23, now up 101.8 percent from its initial offering price.

—Guidance Software is a Pasadena, California-based developer of forensic software. Guidance priced its IPO of 5 million shares at $11.50 each on December 12. On Friday, December 15, the IPO closed at $17.15 per share, up 49.1 percent from its initial offering price.

A week later, on Thursday, December 21, Guidance closed at $15.94, up 38.6 percent from its initial offering price.

—IPG Photonics is an Oxford, Massachusetts-based provider of high-performance fiber lasers. IPG priced its IPO of 9 million shares at $16.50 each on December 12. On Friday, December 15, the IPO closed at $24.60 per share, up 49.1 percent from its initial offering price.

A week later, on Thursday, December 21, IPG closed at $26.40, still up 49.1 percent from its initial offering price.

With aftermarket performances of this nature, you don’t need a fortune teller to figure out that bankers will be rushing more technology IPOs to market in 2007.

Out of China

Three high-profile Chinese IPOs were priced during the week of December 18:

—Melco PBL Entertainment (Macau) is a Hong Kong-based operator of casino and entertainment facilities in Macau. Melco priced its IPO of 60.3 million shares at $19 each to raise $1.15 billion on December 18. The IPO opened the next day at $22 per share and hit a high of $23.55 before closing its opening day at $21.55.

On Thursday, December 21, Melco fell to a low of $18.88, below its offering price, and closed at $20.06 per share.

Many had rated the IPO as “the pick of the week” and predicted a good opening-day pop. At the time, that was a fair call. The proposed offering terms were 53 million shares at $16 to $18 each to raise $901 million. Then the unexpected happened.

Bankers increased the size of the offering by nearly 7 million shares.

The sharply higher number of shares took a lot of aftermarket orders off the table. The shares were handed out in the offering and people didn’t have to bid up the price to complete their position. It showed in Melco’s lackluster aftermarket performance.

The other two Chinese IPOs were solar power companies. To put it kindly, they didn’t shine.

—Trina Solar Limited is a Changzhou, China-based maker of solar power modules. Trina priced its IPO of 5.3 million shares at $18.50 each on December 18. It was priced well above its filing range of $13.50 to $15.50 a share. The IPO opened at $26 per share, ran up to a high for the day at $26.75 and collapsed to close at $20.28.

On Thursday, December 21, Trina closed at $19.22 per share. It had given back most of its opening day-pop.

—Solarfun Power Holdings is a Qidong, China-based producer of solar cells and modules. Solarfun priced its IPO of 12 million shares at $12.50 each on December 19. The IPO opened unchanged from its initial offering price and collapsed. It closed at $9.96, down 20.3 percent from its initial offering price.

On Thursday, December 21, Solarfun closed at $10.39 per share—still well below its initial offering price.

IPO experts believe that “hot money” has been chasing the Chinese solar IPOs and when Trina tanked in the aftermarket, it spooked them. Solarfun was priced the next day. Its 20 percent collapse made Solarfun one of the worst opening-day performers of 2006.

By John E. Fitzgibbon, Jr.

For the first time in memory, Wall Street is preparing for a blizzard of IPOs just before St. Nick blows into town.

Bankers aim to price 11 deals for the week of December 18. They expect to raise about $1.95 billion.

That’s remarkable when you consider that for decades, December’s IPO traffic has run hot and heavy until around mid-month—and then stopped, so everyone could head home for the holidays.

The coming week’s calendar calls for more than twice the average weekly volume for 2006. This year, an average week amounted to 4.4 IPOs that raised $860 million, according to available records.

But there’s more to this week’s calendar than a sleigh full of deals. Four Chinese companies are waiting to make their debuts this week. And a few are on everybody’s “most wanted” list, according to reliable sources.

“Most Wanted” Deals

They are the hotel-casino operator Melco PBL Entertainment (Macau) and the solar power providers Solarfun Power and Trina Solar.

—Melco PBL Entertainment (Macau) is a Hong Kong-based operator of casino gaming and entertainment resort facilities in Macau. The company’s subsidiary, MPBL Gaming, is one of six companies licensed to operate casinos in Macau. Melco PBL is a 50/50 joint venture between Melco and PBL. It is the exclusive vehicle of Melco and PBL to carry on casino, gaming machines, and casino hotel operations in Macau.

The IPO buzz is the deal is hot. The IPO handicappers are looking for a sharp opening premium, according to reliable sources.

—Solarfun Power Holdings is a Qidong, China-based manufacturer of photovoltaic (PV) cells and PV modules in China. Solarfun recently incorporated Shanghai Linyang to provide system integration services in China. In November, it won a competitive bid to provide a substantial majority of the PV modules to be used in a 1 MW solar power plant in Shanghai.

Look at the numbers: For the nine months ending September 30, Solarfun Power Holdings reported net income of RMB72.9 million (US$9.2 million) on total net revenues of RMB386.2 million (US$72.9 million), compared with net income of RMB4.2 million on total net revenues of RMB86.5 million for the same period a year ago.

—Trina Solar is a Changzhou, China-based manufacturer of integrated solar-powered products. The company produces standard solar power modules built to general specifications or designed to fit customers’ specs.

Look at the numbers: For the nine months ending September 30, 2006, Trina Solar reported net income of US$7.8 million on total revenues of US$75.7 million compared with net income of US$1.1 million on total revenues of US$11.4 million for the same period a year ago.

It’s not surprising that Wall Street likes to order from the Chinese IPO menu. Take a look at what’s happened since Labor Day:

Home Inns & Hotel Management, a Shanghai-based economy hotel chain operator, priced 7.9 million shares at $13.80 each on October 25. On December 14, the IPO closed at $34.50, up 150 percent from its initial offering price. (Some people call this company China’s answer to Motel 6.)

Mindray Medical International Limited, a Shenzhen, People’s Republic of China-based manufacturer of medical devices, priced 20 million shares at $13.50 each on September 6. On December 14, the IPO closed at $25.35, up 87.8 percent from its initial offering price.

New Oriental Education & Technology Group, a Beijing-based provider of educational programs, services, and products, priced 7.5 million shares at $15 each on September 6. On December 14, the IPO closed at $35.62, up 137.5 percent from its initial offering price.

This brings us to 2006’s final IPO calendar.

Inside This Week’s IPO Calendar

This week’s new-issues calendar lists 11 deals. Eight are new faces at the IPO window. There are also three carryovers from last week. Here’s the industrial sector breakdown:

Two “blank check” companies (Freedom Acquisition and Transforma Acquisition Group—carryovers)

A construction materials supplier (Dayton Superior)

A Chinese hotel and casino operator (Melco PBL Entertainment)

A medical equipment company (Oculus Innovative Sciences)

A pharmaceutical company (Artes Medical—a carryover)

A Chinese plastic film provider (Fuwei Films)

A power products distributor (Universal Power Group)

A steel products company (Claymont Steel)

Two Chinese solar cell providers (Solarfun Power and Trina Solar)

The bankers expect to raise $1.95 billion.

Company Profiles

—Artes Medical, a San Diego, California-based medical technology company developing a new category of injectable aesthetic products for the dermatology and plastic surgery markets to smooth facial wrinkles, plans to price 4.6 million shares at $12 to $14 each. The IPO is to start trading on Tuesday.

Formed in 1999, Artes Medical has about 109 employees.

Artes Medical has no record of revenues. It has reported an accumulated deficit of $71.6 million.

Underwriters: Cowen and Lazard Capital Markets are the joint-lead managers. Acting as a co-manager is Stifel Nicolaus.

52-Week Percentage Change:

Dow Jones U.S. Pharmaceuticals Index: up 13.5 percent

Nasdaq Composite Index: up 8.55 percent

—Claymont Steel Holdings is a Claymont, Delaware-based company that believes it is the only non-union mini-mill producing custom discrete steel plate in North America.

Claymont Steel Holdings plans to price 6.25 million shares at $15 to $17 each to raise $100 million. The IPO is to start trading on Tuesday.

For the 39 months ending September 30, Claymont Steel Holdings reported net income of $29.6 million on sales of $247.7 million.

Formed in 2005, Claymont Steel Holdings has about 406 employees.

Underwriters: Jefferies is the lead manager. Acting as co-managers are CIBC World Markets, KeyBanc Capital Markets, and Morgan Joseph.

Selected Principal Shareholder: H.I.G. Capital LLC

52-Week Percentage Change:

Dow Jones U.S. Steel Index: up 67.7 percent

Nasdaq Composite Index: up 8.55 percent

—DaytonSuperior is a Dayton, Ohio-based provider of specialized products for use in concrete construction serving the domestic, non-residential construction market.

Dayton Superior plans to price 7.85 million shares at $13 to $15 each to raise $109.9 million. The IPO is to start trading on Wednesday, December 20.

As of September 30, Dayton Superior reported an accumulated deficit of $290 million.

Formed in 1924, Dayton Superior has about 1,700 employees.

Underwriters: Robert W. Baird is the lead manager. Acting as co-managers are CIBC World Markets, KeyBanc Capital Markets, and BB&T Capital Markets.

Selected Principal Shareholders: Odyssey Investment Partners

52-Week Percentage Change:

Dow Jones U.S. Construction & Materials Index: up 14.3 percent

Nasdaq Composite Index: up 8.55 percent

—Fuwei Films (Holdings) is a Weifang Shandong, China-based developer of high-quality plastic film using the biaxial-oriented stretch technique for use in consumer-based packaging, imaging, electronics, and electrical industries and in magnetic products.

Fuwei Films (Holdings) plans to price 3.75 million shares at $8 to $12 each to raise $37.5 million. The IPO is to start trading during the week of December 18.

For the six months ending June 30, Fuwei Films (Holdings) reported net income of US$4 million on revenues of US$27.5 million.

Formed in 2003, Fuwei Films (Holdings) has about 243 employees.

Underwriters: Maxim Group is the lead manager. Acting as co-managers are WR Hambrecht+Co and Chardan Capital Markets.

Selected Principal Shareholders: Apex Glory Holdings Limited and Easebright Investments Limited

52-Week Percentage Change:

Dow Jones U.S. Container & Packaging Index: up 11.3 percent

Nasdaq Composite Index: up 8.55 percent

—Melco PBL Entertainment (Macau) plans to price 53 million American Depositary Shares at $16 to $18 each to raise $901 million. Each ADS represents three Ordinary Shares. The IPO is to start trading on Tuesday.

As of September 30, Melco PBL Entertainment reported an accumulated deficit of $24.6 million.

Formed in 2004, Melco PBL Entertainment has about 521 employees.

Underwriters: Credit Suisse, Citigroup, and UBS Investment Bank are the joint-lead managers. Acting as co-managers are CLSA Asia-Pacific Markets, JPMorgan, CIBC World Markets, and Deutsche Bank.

Selected Principal Shareholders: Melco Leisure and Entertainment Group Limited and PBL Asia Investments Limited

52-Week Percentage Change:

Dow Jones U.S. Gaming Index: up 44.5 percent

Nasdaq Composite Index: up 8.55 percent

—Oculus Innovative Sciences is a Petaluma, California-based manufacturer of products designed to prevent infection in wounds.

Oculus Innovative Sciences plans to price 3.1 million shares at $12 to $14 each to raise $40.8 million. The IPO is to start trading during the week of December 18.

For the six months ending September 30, Oculus Innovative Sciences reported a net loss of $8.9 million on total revenues of $2.3 million, compared with a net loss of $9.7 million on total revenues of $1.1 million for the same period a year ago.

As of September 30, Oculus Innovative Sciences reported an accumulated deficit of $59.3 million.

Formed in 1999, Oculus Innovative Sciences has about 76 employees.

Underwriters: Roth Capital is the lead manager. Acting as co-managers are Maxim Group and Brookstreet Securities.

Selected Principal Shareholder: Brookstreet Securities

52-Week Percentage Change:

Dow Jones U.S. Medical Equipment Index: down 1.28 percent

Nasdaq Composite Index: up 8.55 percent

—Solarfun Power Holdings plans to price 12 million shares at $13.50 to $15.50 each to raise $150 million. The IPO is to start trading on Wednesday, December 20.

Formed in 2004, Solarfun Power Holdings has about 502 employees.

Underwriters: Goldman Sachs (Asia) is the lead manager. Acting as co-manager is CIBC World Markets.

Selected Principal Shareholders: Yonghua Solar Power Investment Holding, WHF Investment Co.,Citigroup Venture Capital International, Hony Capital, LC Fund, and Good Energies Investments Limited

52-Week Percentage Change:

Dow Jones U.S. Electrical & Components Index: up 9.94 percent

Nasdaq Composite Index: up 8.55 percent

—Trina Solar plans to price 5.3 million American Depositary Shares at $13.50 to $15.50 each to raise $76.85 million. Each ADS represents 100 Ordinary Shares. The IPO is to start trading on Tuesday, December 19, 2006.

Formed in 1997, Trina Solar has about 910 employees.

Underwriters: Merrill Lynch and Cowen are the joint-lead managers. Acting as a co-manager is CLSA Asia-Pacific Markets.

Selected Principal Shareholders: Topower International Limited,Divine Land International Investment Limited,Sino Base Investment Co. Limited,South Great Investment Limited,Good Energies Investments Limited,Indopark Holdings Limited,Milestone Solar Holdings I Limited,Perseverance International Investment Limited,Triumph Sky Technology Limited,IPROP Holdings Limited,VDCI S.A.,Milestone Solar Holdings II Limited, and Accurate Group Holdings Limited

52-Week Percentage Change:

Dow Jones U.S. Electrical & Components Index: up 9.94 percent

Nasdaq Composite Index: up 8.55 percent

—Universal Power Group is a Carrollton, Texas-based supply chain and third-party logistics service provider of batteries, related portable power products, and security products.

Universal Power Group plans to price 3 million shares at $7 to $9 each to raise $18 million. The company will offer 2 million shares and selling shareholders will offer 1 million shares. The IPO is to start trading on December 18, 2006.

Formed in 1968, Universal Power Group has about 65 employees.

Underwriters: Ladenburg Thalmann and Wunderlich Securities are the joint-lead managers.

Selected Principal Shareholder: Zunicom, Inc.

52-Week Percentage Change:

Dow Jones U.S. Electrical & Components Index: up 9.94 percent

Nasdaq Composite Index: up 8.55 percent

The “Blank Checks” (Carryovers)

—Freedom Acquisition Holdingsis a New York City-based “blank check” company recently formed to acquire one or more operating businesses. But it does not have any specific plans under consideration or contemplation. The company plans to price 30 million units at $10.00 each. Each unit consists of one share of common stock and one warrant. The underwriters are Citigroup and Ladenburg Thalmann. Selected principal shareholder isBerggruen Holdings North America Ltd. The IPO is scheduled to start trading during the week of December 18.

By John E. Fitzgibbon, Jr.

If you think the shopping malls are crowded this holiday season, take a look at this week’s IPO calendar. If everything gets out the door, it will be the busiest IPO week in two years.

Bankers plan to price 20 IPOs during the week of December 11. The last time that more deals made it to market in a single week was during the week of December, 13, 2004, according to available reports. Bankers priced 21 IPOs back then.

The similarities between the traffic and the dates are coincidental.

The IPO production line has been known to turn out heavy traffic running into December’s second week. That’s how it’s shaping up for this week. And that was true during the same period two years ago.

It’s the bankers’ last chance to get their deals into the market before year-end and, oh yes, to collect a few dollars in underwriting fees. Let’s not forget what Wall Street is all about.

To be sure, a few stragglers can get priced the following week. After that, the IPO production line closes down for the rest of the year.

Let’s take a look at mid-December traffic patterns:   

·                      The week of December 13, 2004, bankers priced 21 IPOs. No more were priced in 2004.

·                      The week of December 12, 2005, bankers priced 13 IPOs. Four more were priced the following week.

·                      The week of December 11, 2006, bankers have 20 IPOs on tap. They have another six scheduled for the following week.

V.I.P. Shopping

There’s another reason for the frantic end-of-the year rush. It’s the institutional investor. This is the V.I.P. shopper who makes it worthwhile for Wall Street bankers to skip a holiday cocktail party or two—if they have to—to get their deals priced by December 15 or so.  

Institutions start closing their books by mid-December and no new investments are added until after the first of the year. This includes IPOs. Without institutional investors, bankers don’t price IPOs.

An investment banker, speaking on condition of anonymity, recently told Red Herring his firm was forced to postpone an IPO, even though it was three times oversubscribed. The demand came only from individual investors. There was no interest from institutions. The deal was pulled.

The institutions are still open for business until mid-December. So Wall Street is getting ready for these V.I.P. shoppers with a huge selection of IPOs.

Inside This Week’s IPO Calendar

This week’s new-issues calendar lists 20 deals. Nineteen are new faces at the IPO window. There’s also a carryover from last week. Here’s the industrial sector breakdown:

·                      An aircraft leasing company (Genesis Limited)

·                      A bank holding company (WSB Financial Group)

·                      Two “blank check” companies (Freedom Acquisition and Transforma Acquisition Group)

·                      Two computer services providers (Isilon Systems and MEDecision)

·                      An electrical equipment provider (IPG Photonics)

·                      An electronics component company (Altra Holdings)

·                      An ethanol producer (US BioEnergy)

·                      A financial services provider (NewStar Financial)

·                      A maritime shipping limited partnership (Teekay Offshore Partners L.P.)

·                      An oil and natural gas producer (Atlas Energy Resources)

·                      An oil well services provider (Cal Dive International)

·                      Three pharmaceutical companies (Affymax, Artes Medical, and Obagi Medical Products)

·                      A REIT (DCT Industrial)

·                      A restaurant chain (Carrols Restaurant Group)

·                      Two software providers (Double-Take Software and Guidance Software)

The bankers expect to raise $3.2 billion.

Company Profiles

—Affymax, a Palo Alto, California-based biopharmaceutical company developing peptide-based drug candidates to improve the treatment of serious and often life-threatening conditions, plans to price 3.5 million shares at $22 to $24 each to raise $80.5 million. The IPO is to start trading on Friday.

Note: Affymax has entered into collaboration agreements with Takeda Pharmaceutical, under which Takeda said it will bear the first $50 million of third-party expenses, pay upfront license fees of $122 million, and purchase about $10 million of Affymax’s preferred stock. Affymax also is eligible to receive up to $355 million upon the successful achievement of clinical development and regulatory milestones. It may receive up to $150 million upon the achievement of certain worldwide annual net sales milestones.

As of September 30, Affymax reported an accumulated deficit of $166.3 million.

Formed in 2001, Affymax has about 98 employees.

Underwriters: Morgan Stanley is the lead manager. Acting as co-managers are Cowen, Thomas Weisel Partners, and RBC Capital Markets.

Selected Principal Shareholders: Apax Excelsior, Bear Stearns Health Innoventures Management, Glaxo, JAFCO Life Science No. 1 Investment Enterprise Partnership, MPM BioVentures, Sprout Capital, and Takeda Pharmaceutical

52-Week Percentage Change:

Dow Jones U.S. Pharmaceutical Index: up 15.9 percent

Nasdaq Composite Index: up 8.61 percent

—Altra Holdings, a Quincy, Massachusetts-based designer of a wide range of motion control products, such as industrial clutches and brakes, enclosed gear drives, open gearing, couplings, and other items, plans to price 10 million shares at $14 to $16 each. The company will offer 6.67 million shares and selling shareholders will offer 3.33 million shares.The IPO is to start trading on Friday.

For the nine months ending September 30, Altra Holdings reported net income of $10.7 million on net sales of $347.5 million, compared with net income of $1.2 million on net sales of $273.5 million for the same period a year ago.

Formed in 2004, Altra Holdings has about 2,600 employees.

Underwriters: Merrill Lynch is the lead manager. Acting as co-managers are Jefferies, Robert W. Baird, and Wachovia Securities

Selected Principal Shareholders: Genstar Capital and Caisse de dépôt et placement du Québec

52-Week Percentage Change:

Dow Jones U.S. Electrical Components and Equipment Index: up 13 percent

Nasdaq Composite Index: up 8.61 percent

—Artes Medical, a San Diego, California-based medical technology company developing a new category of injectable aesthetic products for the dermatology and plastic surgery markets to smooth facial wrinkles, plans to price 4.6 million shares at $12 to $14 each. The IPO is to start trading on Thursday.

Formed in 1999, Artes Medical has about 109 employees.

Artes Medical has no record of revenues. It has reported an accumulated deficit of $71.6 million.

Underwriters: Cowen and Lazard Capital Markets are the joint-lead managers. Acting as a co-manager is Stifel Nicolaus.

52-Week Percentage Change:

Dow Jones U.S. Pharmaceuticals Index: up 15.9 percent

Nasdaq Composite Index: up 8.61 percent

—Atlas Energy Resources LLC, aMoon Township, Pennsylvania-based limited liability company formed in 2006 to own and operate the natural gas and oil assets of Atlas America in the Appalachian Basin, plans to price 6.3 million shares representing “Class B” limited liability company interest at $19 to $21 each. The IPO is to start trading on Wednesday.

The company plans to make cash distributions of $0.42 per common unit, or $1.68 annually.

Underwriters: UBS Investment Bank is the lead manager. Acting as co-managers are RBC Capital Markets, Friedman Billings Ramsey, KeyBanc Capital Markets,Credit Suisse, Sanders Morris Harris, and Stifel Nicolaus.

Selected Principal Shareholders: Atlas America and Atlas Energy Management

52-Week Percentage Change:

Dow Jones U.S. Exploration & Development Index: up 12.5 percent

Nasdaq Composite Index: up 8.61 percent

—Cal Dive International, a Houston-based marine contractor providing manned diving, pipe laying, and pipe burial services to the offshore oil and natural gas industry, plans to price 22.2 million shares at $14 to $16 each. The IPO is to start trading on Thursday.

For the nine months ending September 30, 2006, Cal Dive International reported net income of $93.2 million on total revenues of $372.9 million, compared with net income of $20.1 million on total revenues of $127.3 million for the same period a year ago.

Formed in 1975, Cal Dive International has about 1,200 employees.

Underwriters: Banc of America Securities and JPMorgan are the joint-lead managers. Acting as co-managers are Johnson Rice, Raymond James, Simmons & Co., and Natexis Bleichroeder.

Selected Principal Shareholder: After the offering, Helix will own about 73.5 percent of the outstanding common stock or about 69.5 percent if the underwriters exercise in full their over-allotment option.

52-Week Percentage Change:

Dow Jones U.S. Oil Equipment & Services Index: up 17.9 percent

Nasdaq Composite Index: up 8.61 percent

—Carrols Restaurant Group, a Syracuse, New York-based company operating three restaurant brands in the quick-casual and quick-service restaurant arena, plans to price 15 million shares at $14 to $16 each. The company will offer 5.67 million shares and selling shareholders will offer 9.33 million shares.The IPO is to start trading on Friday.

As of September 30, Carrols Holdings Group reported an accumulated deficit of $25.4 million.

Formed in 1986, Carrols Holdings Group has about 16,300 employees.

Underwriters: Wachovia Securities and Banc of America Securities are the joint-lead managers. Acting as co-managers are RBC Capital markets and Raymond James.

Selected Principal Shareholders: BIB Holdings (Bermuda) and Madison Dearborn Capital Partners

52-Week Percentage Change:

Dow Jones U.S. Restaurants & Bars Index: up 19 percent

Nasdaq Composite Index: up 8.61 percent

—DCT Industrial, a Denver-based REIT specializing in bulk distribution and light industrial properties, plans to price 15 million shares at $11.50 to $12.50 each. The IPO is to start trading on Wednesday.

Formed in 2002, DCT Industrial has about 64 employees.

Underwriters: Merrill Lynch and Wachovia Securities are the joint-lead managers. Acting as co-managers are Banc of America Securities, JPMorgan, Morgan Keegan, and Wells Fargo Securities.

52-Week Percentage Change:

Dow Jones U.S. Real Estate Investment Trust Index: up 30.5 percent

Nasdaq Composite Index: up 8.61 percent

—Double-Take Software, a Southborough, Massachusetts-based provider of affordable software that cuts downtime and protects data for business-critical systems, plans to price 7.5 million shares at $9 to $11 each. The company will offer 5 million shares and selling shareholders will offer 2.5 million shares.The IPO is to start trading on Friday.

For the nine months ending September 30, Double-Take Software reported net income of $5 million on total revenues of $41.8 million, compared with a net loss of $1.2 million on total revenues of $28.9 million for the same period a year ago.

As of September 30, Double-Take Software reported an accumulated shareholders’ deficit of $54.6 million.

Formed in 1991, Double-Take Software has about 296 employees.

Underwriters: Cowen and Thomas Weisel Partners are joint-lead managers. Acting as co-managers are CIBC World Markets and Pacific Crest Securities.

Selected principal shareholders: ABS Capital Partners and J. & W. Seligman

52-Week Percentage Change:

Dow Jones U.S. Software Index: up 9.43 percent

Nasdaq Composite Index: up 8.61 percent

—Genesis Lease Limited, a Limerick, Ireland-based company, was recently formed to acquire and lease commercial jet aircraft and other aviation assets. Genesis Lease plans to price 27.86 million American Depositary Shares at $21 to $23 each. The IPO is to start trading on Friday.

Note: In a private placement concurrent with the offering, an affiliate of General Electric will purchase a number of ADS that will equal about 11 percent of the issued and outstanding ADS.

For the nine months ending September 30, Genesis Lease Limited reported net income of $21.7 million on revenues of $111.6 million, compared with net income of $16.9 million on revenues of $87 million for the same period a year ago.

Underwriters: Citigroup and JPMorgan are the joint-lead managers. Acting as co-managers are Merrill Lynch and Wachovia Securities.

Selected Principal Shareholder: General Electric Co.

52-Week Percentage Change:

Dow Jones U.S. Transportation Services Index: up 19.1 percent

Nasdaq Composite Index: up 8.61 percent

—Guidance Software, of Pasadena, California, provides software for digital investigations that lets corporations and government agencies search, collect, preserve, and analyze, from a single location, data across the servers, desktops, and laptops that comprise their entire network. Guidance Software plans to price 5 million shares at $12.50 to $14.50 each to raise $67.5 million. The company will offer 3.25 million shares and selling shareholders will offer 1.75 million shares.The IPO is to start trading on Thursday.

For the nine months ending September 30, 2006, Guidance Software reported a net loss of $2.2 million on total revenues of $39.4 million, compared with a net loss of $1.2 million on total revenues of $27.2 million for the same period a year ago.

As of September 30, Guidance Software reported an accumulated deficit of $8.8 million.

Formed in 1997, Guidance Software has about 305 employees.

Underwriters: Morgan Stanley and Lehman Brothers are the joint-lead managers. Acting as co-managers are Wachovia Securities and A.G. Edwards.

Selected Principal Shareholder: Pasadena Educational Foundation 

52-Week Percentage Change:

Dow Jones U.S. Software Index: up 9.43 percent

Nasdaq Composite Index: up 8.61 percent

—IPG Photonics is an Oxford, Massachusetts-based developer of a broad line of high-performance fiber lasers and amplifiers used in various processes, including the production of medical stents and memory chips. IPG Photonics plans to price 9 million shares at $13.50 to $15.50 each. The company will offer 6.2 million shares and selling shareholders will offer 2.8 million shares.The IPO is to start trading on Thursday.

For the nine months ending September 30, IPG Photonics reported net income of $12.6 million on net sales of $101.1 million, compared with net income of $3.5 million on net sales of $62.2 million for the same period a year ago.

As of September 30, 2006, IPG Photonics reported an accumulated deficit of $130 million.

Formed in 1990, IPG Photonics has about 1,000 employees.

Underwriters: Merrill Lynch and Lehman Brothers are the joint-lead managers. Acting as co-managers are Needham, Jefferies and Thomas Weisel Partners.

Selected principal shareholders: IP Fibre Devices (UK) Ltd., TA Associates Funds, and JDS Uniphase

52-Week Percentage Change:

Dow Jones U.S. Electronic Equipment Index: up 12.8 percent

Nasdaq Composite Index: up 8.61 percent

—Isilon Systems, a Seattle-based provider of clustered storage systems for digital content, plans to price 8.35 million shares at $8.50 to $9.50 each. The IPO is to start trading on Thursday.

For the nine months ending October 1, Isilon Systems reported a net loss of $15 million on total revenues of $41.6 million, compared with a net loss of $15.1 million on total revenues of $12.4 million for the same period a year ago.

As of October 1, Isilon Systems reported an accumulated deficit of $64.7 million.

Formed in 2001, Isilon Systems has about 241 employees.

Underwriters: Morgan Stanley and Merrill Lynch are the joint-lead managers. Acting as co-managers are Needham and RBC Capital Markets.

Selected Principal Shareholders: Atlas Venture, Sequoia Capital, Madrona Venture Group, and Lehman Brothers.

52-Week Percentage Change:

Dow Jones U.S. Computer Hardware Index: up 15.5 percent

Nasdaq Composite Index: up 8.61 percent

—MEDecision, a Wayne, Pennsylvania-based provider of software to healthcare payers, plans to price 5.5 million shares at $14 to $16 each. The company will offer 3.3 million shares and selling shareholders will offer 2.2 million shares. The IPO is to start trading on Wednesday.

For the nine months ending September 30, MEDecision reported a net loss of $6.4 million on total revenues of $33.5 million, compared with a net loss of $4.1 million on total revenues of $24.3 million for the same period a year ago.

As of September 30, MEDecision reported an accumulated deficit of $66.2 million.

Formed in 1988, MEDecision has about 235 employees.

Underwriters: Cowen and CIBC World Markets are the joint-lead managers. Acting as a co-manager is Pacific Growth Equities.

Selected Principal Shareholders: Grotech Capital Group, Stockwell Fund, Liberty Ventures, DWS Investment GmbH, and Britannia Holdings Limited.

52-Week Percentage Change:

Dow Jones U.S. Software Index: up 9.43 percent

Nasdaq Composite Index: up 8.61 percent

—NewStar Financial, of Boston, is a commercial finance company providing customized debt financing to middle-market businesses and mid-sized specialty finance companies, as well as to issuers of asset-backed and commercial mortgage-backed securities, and commercial real estate borrowers. NewStar Financial plans to price 11 million shares at $15 to $17 each. The IPO is to start trading on Thursday.

For the nine months ending September 30, NewStar Financial reported net income of $4.9 million on net interest income of $77.1 million, compared with a net loss of $5.7 million on net interest income of $19.1 million for the same period a year ago.

As of September 30, NewStar Financial reported an accumulated deficit of $627,000.

Formed in 2004, NewStar Financial has about 91 employees.

Underwriters: Goldman Sachs, Morgan Stanley, Citigroup, and Wachovia Securities are the joint-lead managers. Acting as co-managers are Banc of America Securities, JMP Securities, JPMorgan, and Keefe, Bruyette & Woods.

Selected Principal Shareholders: Capital Z Partners, Corsair II Capital, J.P. Morgan Capital, OZ Master Fund, and The Northwestern Mutual Life Insurance Co.

52-Week Percentage Change:

Dow Jones U.S. Specialty Finance Index: up 17.1 percent

Nasdaq Composite Index: up 8.61 percent

—Teekay Offshore Partners LLC is a Nassau, Bahamas-based company formed in August 2006 by Teekay Shipping, a provider of marine services to the global oil and natural gas industries, to further develop its operations in the offshore market. The company plans to price 7 million Common Unitsrepresenting limited partner interestsat $19 to $21 each. The IPO is to start trading on Thursday.

Underwriters: Citigroup and Merrill Lynch are the joint-lead managers. Acting as co-managers are Morgan Stanley, A.G. Edwards, Deutsche Bank Securities, Raymond James,

Simmons & Co., DnB NOR Markets, and Fortis Securities.

Selected Principal Shareholders: Teekay Shipping

52-Week Percentage Change:

Dow Jones U.S. Marine Transportation Index: up 0.42 percent

Nasdaq Composite Index: up 8.61 percent

—Obagi Medical Products, of Long Beach, California, is a specialty pharmaceutical company focused on the aesthetic and therapeutic skin health markets to treat a range of skin conditions, including premature aging, sun damage, hyperpigmentation, acne and soft tissue deficits, such as fine lines and wrinkles. Obagi Medical Products plans to price 5.35 million shares at $13 to $15 each. The company will offer 4 million shares and selling shareholders will offer 1.35 million shares.The IPO is to start trading on Thursday.

For the nine months ending September 30, Obagi Medical Products reported net income of $3.6 million on net sales of $55 million, compared with net income of $6.5 million on net sales of $45.6 million for the same period a year ago.

Formed in 1988, Obagi Medical Products has about 145 employees.

Underwriters: JPMorgan is the lead manager. Acting as co-managers are CIBC World Markets, Thomas Weisel Partners, and Robert W. Baird.

Selected Principal Shareholder: Stonington Capital Appreciation 1994 Fund

52-Week Percentage Change:

Dow Jones U.S. Pharmaceuticals Index: up 15.9 percent

Nasdaq Composite Index: up 8.61 percent

—US BioEnergy, an Inver Grove Heights, Minnesota-based producer and marketer of ethanol and distillers’ grains, plans to price 9.75 million shares at $15 to $17 each. The IPO is to start trading on Friday.

For the nine months ending September 30, US BioEnergy reported a net loss of $523,000 on total revenues of $60.4 million, compared with a net loss of $1 million on total revenues of $10 million for the same period a year ago.

As of September 30, US BioEnergy reported an accumulated deficit of $4.3 million.

Formed in 2004, US BioEnergy has about 220 employees.

Underwriters: UBS Investment Bank and Piper Jaffray are the joint-lead managers. Acting as co-managers are William Blair and A.G. Edwards.

Selected Principal Shareholder: CHS

52-Week Percentage Change:

Dow Jones U.S. Specialty Chemicals Index: up 24.9 percent

Nasdaq Composite Index: up 8.61 percent

—WSB Financial Group, of Bremerton, Washington, is a bank-holding company operating seven full-service branches and three loan product offices located in the west Puget Sound area. WSB Financial Group plans to price 2.3 million shares at $14 to $16 each. The IPO is to start trading on Thursday.

For the nine months ending September 30, WSB Financial Group reported net income of $3.11 million, compared with net income of $1.98 million for the same period a year ago.

Formed in 1999, WSB Financial Group has about 118 employees.

Underwriters: D.A. Davidson is the lead manager.

52-Week Percentage Change:

Dow Jones U.S. Banks Index: up 9.16 percent

Nasdaq Composite Index: up 8.61 percent

The Blank Checks

—Freedom Acquisition Holdingsis a New York City-based “blank check” company recently formed to acquire one or more operating businesses. But it does not have any specific plans under consideration or contemplation. The company plans to price 30 million units at $10.00 each. Each unit consists of one share of common stock and one warrant. The underwriters are Citigroup and Ladenburg Thalmann. Selected principal shareholder isBerggruen Holdings North America Ltd. The IPO is scheduled to start trading during the week of December 11, 2006.

By John E. Fitzgibbon, Jr.

Now that the Thanksgiving break is over, bankers are filling up the IPO calendar for 2006’s end-of-the-year run.

Six deals are scheduled for this week, 13 for the following week, and there are another dozen or more deals waiting in the wings to get out the door by mid-December.

All in all, over 30 IPOs could get priced over the next few weeks. If the IPO bankers’ dreams come true, that would make December 2006 the second-busiest December since 2000.

The busiest December was in 2004, when 33 deals got done.

In the Wings

Going public is a multi-step process.

First comes the planning, next comes the filing (the S-1 filing with the U.S. Securities and Exchange Commission), then comes the setting of the proposed pricing terms (the S-1/A amended filing with the SEC), then it goes onto the IPO calendar with a pricing date and, finally, the deal is priced.

The clue in watching the evolution of the IPO production line is keeping an eye for the S-1/A filings that give the proposed pricing terms. That’s when bankers are getting ready to move their IPOs onto the calendar. Once that’s done, bankers don’t dally in pricing their IPOs.

A long wait between setting pricing terms and pricing the deal can be ruinous. Securities markets have been known to sell off, and any deal caught on the IPO calendar during such times might have to be marked down.

Marking down a deal can make it “damaged goods,” to borrow a phrase from merchandising circles.

There are a dozen IPOs with proposed pricing terms in the pipeline, but no pricing dates—as yet.

Historically, the IPO season runs to mid-December. As such, bankers have until around Dec. 15th to get these deals out the door. If they wait, it’ll be another four to six weeks before the 2007 IPO season starts in mid- to late January.

Inside This Week’s IPO Calendar

This week’s new-issues calendar lists six new faces at the IPO window. Here’s the industrial sector breakdown: An airline company (Allegiant Travel), a “blank check” company (Transforma Acquisition Group), a coal and natural gas limited partnership (Penn Virginia GP Holdings), a moving service provider (Smart Move), a specialty retailer (Heelys), and a marine fuel and lubricants supplier (Aegean Marine Petroleum Network).

The new faces are expected to raise $665 million.

Company Profiles

—Aegean Marine Petroleum Network, an Athens, Greece-based supplier of refined marine fuel and lubricants to ships in port and at sea, plans to price 10 million shares at $14 to $16 each.The IPO is to start trading on Thursday.

For the six months ending June 30, 2005, Aegean Marine Petroleum Network reported net income of $8.6 million on total revenues of $197.3 million, compared with net income of $9.3 million on total revenues of $133.2 million for the same period a year ago.

Aegean Marine Petroleum Network has about 4,048 employees.

Underwriters: Bear Stearns is the lead manager. The co-managers are Johnson Rice and Simmons & Co.

Selected Principal Shareholders: Leveret International and Dimitris Melisanidis

52-week Percentage Change:

Dow Jones U.S. Transportation Services Index: up 17.3 percent

Nasdaq Composite Index: up 7.26 percent

—Allegiant Travel is a Las Vegas-based provider of low-cost airline passenger services linking travelers in small cities to world-class leisure destinations, such as Las Vegas, Orlando, and Tampa/St. Petersburg.

Allegiant Travel plans to price 5 million shares at $15 to $17 each to raise $80 million. The IPO is to start trading on Friday.

For the nine months ending September 30, 2006, Allegiant Travel reported net income of $10.3 million on total operating revenues of $180.2 million, compared with net income of $7.7 million on total operating revenues of $92.4 million for the same period a year ago.

Formed in 1997, Allegiant Travel has about 787 employees.

Underwriters: Merrill Lynch is the lead manager. Acting as co-managers are Bear Stearns and Raymond James.

Selected Principal Shareholders: ComVest Allegiant Holdings and Viva Air Limited

52-Week Percentage Change:

Dow Jones U.S. Airline Index: up 26.6 percent

Nasdaq Composite Index: up 7.26 percent

—Heelys is a Carrollton, Texas-based designer of action sports-inspired footwear products for the youth market. The company’s primary product, HEELYS-wheeled footwear, is dual-purpose footwear that incorporates a stealth, removable wheel in the heel that allows the user to transition from walking or running to skating by shifting weight to the heel.

Heelys sells its products through distribution channels, including full-line sporting goods retailers such as The Sports Authority, Modell’s, and Dick’s Sporting Goods, specialty apparel and footwear retailers, such as Journeys and Bob’s Stores, and select department stores, such as Nordstrom and Mervyn’s.

Heelys plans to price 6.25 million shares at $16 to $18 each to raise $106.3 million. The company will offer 3.125 million shares and selling shareholders will offer 3.125 million shares.The IPO is to start trading on Friday.

For the nine months ending September 30, 2006, Heelys reported net income of $17.7 million on net sales of $117.5 million, compared with net income of $2.9 million on net sales of $29.1 million for the same period a year ago.

Formed in 2000, Heelys has about 38 employees.

Underwriters: Bear Stearns and Wachovia are the joint-lead managers. Acting as co-managers are JPMorgan and CIBC World Markets.

Selected Principal Shareholder: Capital Southwest Venture Corp.

52-Week Percentage Change:

Dow Jones U.S. Specialty Retailers Index: up 8.3 percent

Nasdaq Composite Index: up 7.26 percent

—Penn Virginia GP Holdings is a Radnor, Pennsylvania-based limited partnership formed in 2006 that owns three types of equity interests in Penn Virginia Resource Partners, L.P., a publicly traded limited partnership engaged in the management of coal properties and the gathering and processing of natural gas.

Penn Virginia GP Holdings plans to price 6.3 million common units representing partner interests at $18 to $20 each to raise $119.7 million. It has been reduced from 6 million common units at $19 to $21 each to raise $120 million. The IPO is to start trading on Tuesday.

Upon the closing of this offering, Penn Virginia GP Holdings plans to make quarterly cash distributions of $0.235 per unit, or $0.94 per unit on an annual basis.

Underwriters: Lehman Brothers and UBS Investment Bank are the joint-lead managers. Acting as co-managers are A.G. Edwards, RBC Capital Markets, Wachovia, JPMorgan, BMO Capital Markets, and Stifel Nicolaus.

Selected Principal Shareholder: Penn Virginia

52-Week Percentage Change:

Dow Jones U.S. Coal Index: up 2.04 percent

Nasdaq Composite Index: up 7.26 percent

The Unit Offerings

—Smart Move is a Greenwood Village, Colorado-based provider of moving services in about 61 metropolitan centers in the United States. The company uses its proprietary SmartVault shipping containers as an alternative method of moving household goods.

Smart Move plans to price 2.4 million units at $5 each to raise $12 million. Each unit consists of one common share and one five-year warrant. The IPO is to start trading during the week of December 4, 2006.

For the seven months ending July 31, 2006, Smart Move reported a net loss of $6.6 million on sales of $2.3 million, compared with a net loss of $1.4 million on sales of $278,000 for the same period a year ago.

As of June 30, 2006, Smart Move reported an accumulated deficit of $10.7 million.

Formed in 2004, Smart Move has about 22 employees.

Underwriters: Newbridge Securities and I-Bankers Securities are the joint-lead managers. Acting as co-managers are Neidiger, Tucker, Bruner and Bathgate Capital Partners.

52-Week Percentage Change:

Dow Jones U.S. Specialized Customer Services Index: down 15.9 percent

Nasdaq Composite Index: up 7.26 percent

—Transforma Acquisition Group, a New York City-based “blank check” company formed in 2006 to acquire or control operating businesses in the technology, media, or telecommunications industries, plans to price 18.75 million units at $8.00 each to raise $150 million.

Thanksgiving break isn’t just for school kids. Wall Street has its own version, when investment bankers and the road shows take a short hiatus around the Thanksgiving holiday.

The road show is one of the last steps a company takes in going public.

Road shows are “due diligence” meetings that investment bankers hold to introduce the company going public to potential investors. It can take up to three weeks of traveling from city to city before an IPO gets priced.

For that reason, bankers try to price their deals when there are no holidays on the calendar. Holidays such as Thanksgiving usually mean buyers are out of town.

For all intents and purposes, Thanksgiving time is a three-day work week. The IPO production line slows down. Consider the IPO traffic surrounding the week before, the week of, and the week after Thanksgiving:

In 2004

Week of November 15 (the week before): eight IPOs priced

Week of November 22 (Thanksgiving): one IPO priced

Week of November 29 (the week after): one IPO priced

December: 30 IPOs priced

In 2005

Week of November 14 (the week before): six IPOs priced

Week of November 21 (Thanksgiving): three IPOs priced

Week of November 28 (the week after): two IPOs priced  

December: 21 IPOs priced

In 2006

Week of November 13 (the week before): 10 IPOs priced

Week of November 20 (Thanksgiving): four IPOs priced

Week of November 27 (the week after): three IPOs on the calendar

Flying South of the Border

Yes, there are three deals on this week’s IPO calendar. One seems to be in more demand than the others. But there’s a reason.

Grupo Aeroportuario del Centro Norte, or Central North Airport Group, was formed in 1998 as part of the Mexican government’s program for opening Mexico’s airports to private investment. The company owns concessions to operate, develop, and maintain 13 airports in Mexico.

Another Mexican airport operator went public this year. Its IPO has done very well in the aftermarket. It is Grupo Aeroportuario del Pacifico, or Pacific Airport Group.

PacificAirport was another Mexican airport privatization. The company operates 12 airports located in the Pacific and Central regions of Mexico. On February 24, the company priced 41.5 million American Depositary Shares (ADS) at $21 each. On November 22, the IPO closed at $38.19 per share, up 81.9 percent from its initial offering price.

Before you run down the street looking for your friendly stockbroker to get stock in the Central North Airport IPO, you might consider the difference between the two.

PacificAirport is much larger.

For the nine months ending September 30, Pacific Airport Group reported net income of US$201.8 million on revenues of US$732.6 million.

For the six months ending June 30, CentralNorthAirport reported net income of US$22 million on revenues of US$68 million.

Inside This Week’s IPO Calendar

This week’s new-issues calendar lists two new faces at the IPO window, plus a carryover. Here’s the industrial sector breakdown: A computer company (Netlist), a software provider (Wireless Ronin Technologies), and a transportation service company (Grupo Aeroportuario del Centro Norte)

The new faces are expected to raise $232 million.

Company Profiles

—Grupo Aeroportuario del Centro Norte, or Central North Airport Group, plans to price 10.45 million American Depositary Shares at $14.50 to $16.50 each to raise $162 million. Each ADS represents eight Series B Shares. The IPO is to start trading on Wednesday.

For the year ending December 31, 2005, Grupo Aeroportuario del Centro Norte reported net income of US$31 million on revenues of $122 million.

Formed in 1998, Grupo Aeroportuario del Centro Norte has about 993 employees.

Underwriters: Citigroup is the lead manager. Acting as co-managers are UBS Investment Bank and Scotia Capital.

Selected Principal Shareholders: Aeroinvest and SETA

52-Week Percentage Change:

Dow Jones U.S. Transportation Service Index: up 16.5 percent

Nasdaq Composite Index: up 9.12 percent

—Netlist is an Irvine, California-based manufacturer of high-performance memory subsystems. The company sells its subsystems to original equipment manufacturers in the server, high-performance computing, and communications markets to such companies as IBM, Dell, Gateway, Lenovo, and Hewlett-Packard.

Netlist plans to price 6.25 million shares at $7 to $9 each to raise $50 million. The IPO is to start trading on Thursday.

For the nine months ending September 30, Netlist reported net income of $3.1 million on net sales of $108.4 million, compared with a net loss of $2 million on net sales of $56.5 million for the same period a year ago.

As of September 30, Netlist reported an accumulated deficit of $18.3 million.

Formed in 2000, Netlist has about 115 employees.

Underwriters: Thomas Weisel Partners is the lead manager. Acting as co-managers are Needham and WR Hambrecht+Co.

Selected Principal Shareholder: Serim Paper Manufacturing

52-Week Percentage Change:

Dow Jones U.S. Electronic Equipment Index: up 15.9 percent

Nasdaq Composite Index: up 9.12 percent

The Carryover

There is one carryover from last week:

Wireless Ronin Technologies, an Eden Prairie, Minnesota-based software provider delivering systems that manage, schedule, and deliver digital content over wireless or wired networks, plans to price 4.5 million shares at $4 to $5 each to raise $20.3 million. Feltl and Co. is the lead manager. Selected Principal Shareholders are Spirit Lake Tribe, Galtere International, and SHAG LLC. The IPO is to start trading during the week of November 20.

52-Week Percentage Change:

Dow Jones U.S. Electronic Components & Equipment Index: up 18.9 percent

Nasdaq Composite Index: up 9.12 percent