Audible IPO seen strong but not week's noisiest
By Eric Wahlgren
NEW YORK, July 13 (Reuters) - Although Audible Inc. (Nasdaq:ADBL - news) is in the trendy business of selling audio versions of books, newspapers and radio shows online, its market debut may not make as much noise as some other IPOs this week.
The company, which allows consumers to download onto their computers content ranging from Frank McCourt's book ''Angela's Ashes'' to National Public Radio's folksy ''Car Talk,'' hopes to raise as much as $40 million in its initial public offering.
But with Chinese Internet service provider China.com Corp.(Nasdaq:CHINA - news) and other hot IPOs this week generating serious buzz, some IPO experts fear that Wayne, N.J.-based Audible may not draw as big of an investor audience as they feel it deserves.
China.com on Monday had 4.2 million shares priced above the anticipated range at $20 a share. The stock is expected to open at a sharp premium.
''The problem is that (Audible is) coming this week, when it is so loaded with top-quality IPOs,'' said Irv DeGraw, research director at WorldFinanceNet.com. ''I am afraid they may get overlooked.''
Audible plans to price four million shares in the $8-$10 range. Credit Suisse First Boston is the lead underwriter.
Despite the bevy of much-anticipated IPOs on the calendar this week, DeGraw said Audible stock could still rise as much as 75 percent on its first day of trade.
John Paulson, an analyst with Paulson Investment Co. in Portland, Ore., said the delivery of audio on-demand over the Internet will become a ''huge industry'' in the future, but cautions companies like Audible may face strong competition.
''The barriers to entry are not that great,'' Paulson said. ''If Amazon.com (Inc. (Nasdaq:AMZN - news)) wanted to start doing it, they could do it quickly.''
Audible's competitors include Broadcast.com Inc. (Nasdaq:BCST - news), Audiohighway.com (Nasdaq:AHWY - news) and Command Audio -- some of which also offer the delivery of music online.
''Audible is still relatively small,'' DeGraw said.
Audible lost $8.1 million on $376,000 in revenues in 1998 compared with a $8 million loss in 1997 on $60,000 in revenues.
With Audible's ''AudibleManager'' and ''AudiblePlayer'' software, consumers can download more than 15,000 hours of content including The New York Times onto personal computers and handheld electronic devices.
It costs 95 cents for a daily audio issue of The Times.
International Data Corp. estimates that shipments of hand-held companion devices will increase to more than 14 million globally by 2002 from 4.5 million in 1998.
Audible has pacts with companies such as Compaq Computer Corp. (NYSE:CPQ - news) and Philips Electronics that allow its software to be installed on these companies' hand-held electronic devices.
''The alternative Internet device is absolutely untapped right now,'' said Emily Meehan, an analyst with the Yankee Group.
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