"IPO VIEW - Internet IPOs rush back to market"
NEW YORK, Nov 22 (Reuters) - "Internet companies are again stars of the new issues market, with deals that were sidelined by investor jitters now rushing to benefit from renewed excitement.
Following unexpectedly riveting performances by new Internet stocks EarthWeb (Nasdaq:EWBX - news) and theglobe.com (Nasdaq:TGLO - news), six cyberdeals that were in the initial public offerings pipeline for months have been scheduled for the next few weeks...But in spite of the stock market decline of recent months that sent the value of many once-hot IPOs below their offering price, analysts expect these upcoming cyberdeals to soar....''It's clear the quality of the company is having little impact on whether a deal is successful,'' said Ryan Jacob, manager of the Internet Fund. ''theglobe and EarthWeb were not top tier companies, and they did very well.''
EarthWeb and theglobe, both money losing companies, were trading on Friday 3 and 5 times, respectively, above their IPO price two weeks ago.
As long as these and other hot Internet stocks continue to fly high, analysts expect the next series of cyberdeals to benefit.
The schedule of IPOs for the upcoming week is relatively slim in light of the Thanksgiving holiday. But the following six Internet-related companies are tentatively slated for the two weeks after that: Ticketmaster Online-CitySearch, Internet auction company uBid, AboveNet Communications, InfoSpace.com, Internet America, and Xoom.com.
''The ones able to get out of the gate first will be advantaged,'' Jacob said..."
source: © Nov 22 1998 Reuters
biz.yahoo.com
Signs of IPO Revival Growing as More Companies Plan Sales
New York, Nov. 20 (Bloomberg) -- Demand for initial public
stock sales is improving, leading an insurer, two Internet firms,
and one telecommunications equipment maker to schedule sales in
the next two weeks, with others expected before year-end.
Issuers raised $3.99 billion in the last three weeks, more
than was raised in either August, or September. The total was
swollen by the $2.81 billion sale by Fox Entertainment Group
Inc., and also included smaller offerings from Mony Group Inc., a
life insurer; the Internet companies EarthWeb Inc. and
Theglobe.com, Inc. and Delicious Brands Inc., which sells cookies
and crackers.
The rebound in small stocks has helped rekindle investor
interest in IPOs. The Russell 2000 index of small companies is up
27 percent since Oct. 8, Bloomberg's IPO Index, which tracks the
performance of stocks during their first year of trading, is up
52 percent from that date. Fox, Mony, Earthweb and Theglobe.com
all closed Friday above their sale price.
''The emotional elements of the IPO market are on a full
boil, meaning that investors have made money on their recent
purchases and as a result of that, they feel more eager to
participate in the next offering,'' Sipprelle said...''We are seeing signs of life,'' said Scott Sipprelle, co-founder of Midtown Research Group, which advises institutional investors on IPOs. ''It's just unclear whether it's the reflex twitch of a dying man or else the body come back to life.''...Also, ''there's only a few weeks left before the IPO market shuts down for the better part of a month'' because of the year-end holiday lull. There is a feeling among investors that ''if
you want to play the January rally early, why not do it by buying
some new issues?'' Sipprelle said...''There is a looming bulge of January and February IPOs, and it will be substantial, and it will test the capacity and liquidity of investors,'' he said..."
source: © Bloomberg News November 20, 1998, 3:46 p.m. PT
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