nice writeup on EBNX on ipoisland:
eBenX Inc. (EBNX):
eBenX, is a provider of software and solutions that allow businesses to manage and automate their health care plans for employees. The company's software allows businesses, primarily large ones, to integrate the current networks and technology systems, with the back-end systems of health care providers. The company's online service, eBenX, online allows it's customers, to access and view current transactions and information regarding their company's health plans. Key customers include, regional telephone company, Bell Atlantic, soft drink maker, PepsiCo, and multinational, G.E.
Key Competitors: Healtheon WebMD, Shared Medical Systems, McKesson HBOC, CareInsite
Financial Information:
1998 Sales: 10.1 million dollars
1998 Sales Growth: 42.7%
1998 Net Income: Loss of 1 million dollars
IPO Information:
Range: 10.50 to 12.50
Float: 5 million shares
Post-Offering Shares: 15 million
IPO Valuation (based on a price of 12.50): 187.5 million dollars
Underwriters:
Lead: BancBoston Robertson Stephens
Others: Warburg Dillon Read, Thomas Weisel Partners
Analysis: Although, Internet health care stocks, have not been as in favor as they once were, we are still high on this deal. The company unlike many recent Internet health care IPOs, doesn't operate in the content sector, instead the company operates in the less crowded but more lucrative back-office sector. In general back-office stocks, and those of back-office health care stocks, have performed well lately. Companies such as Jim Clark's Healtheon, and CareInsite, both had successful debuts. The IPO valuation is reasonable if not cheap, and the underwriting team is strong, led by one of our favorites, BancBoston Robertson Stephens. If this were any other week, this deal would be one investors would have marked down on their calendars in anticipation, instead it's one of the many strong yet not killer deals, this weak. Despite the crowded and strong weak, expect a very nice premium.
jim |
