First IPO in weeks expected on Wednesday
Tuesday September 15, 1:35 pm Eastern Time
NEW YORK, Sept 15 (Reuters) - Galacticomm Technologies Inc. is set to go public Wednesday in the first initial public offering in more than two weeks, but the deal is seen as too small to turn around the dreary IPO market.
''It certainly is not going to give anyone warm and fuzzy feelings that it is safe to go back into the market,'' said David Menlow, president of the IPO Financial Network in Springfield, N.J.
Galacticomm, a software development company, is expected to sell 1.8 million units at $6.10 in a deal underwritten by Security Capital Trading Corp. Each unit is a combination of a share and a warrant to purchase a share.
Several larger offerings, underwritten by big Wall Street houses like Goldman Sachs and Morgan Stanley, are tentatively planned for the week of Sept. 21.
Galacticomm had planned to go public two weeks ago, but postponed the deal when the Dow Jones Industrial Average plunged 512 points in its second-worst drop ever.
''We had all the orders, we just decided to wait two weeks and see how the market was doing,'' said Ron Tasso, syndicate manager at Security Capital Trading Corp., the lead underwriter on the IPO.
Scores of companies have postponed their IPOs in recent months as increasing volatility in the stock market killed demand for most new issues. Those deals have not yet returned to the IPO pipeline.
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