NEW YORK (CBS.MW) -- Claimsnet.Com kicks off a week full of Web virtuosos, including W.R. Hambrecht's very-first Internet offering called Ravenswood Winery, a $150 million IPO from Rhythms Netconnections and an IPO for Generation Y, called iTurf.
Claimsnet.Com (CLAI) is expected to price 2.5 million shares between $7 to $9, Monday evening. The Dallas-based company processes health-care claims over the Net. While the online claims processing business was an estimated $4 billion market last year, Claimsnet is trailing behind some big competitors such as Healtheon (HLTH)
"Claimsnet has a hard road ahead of it," said Peony Kao, Internet analyst at Renaissance Capital. "It missed the first-to-market advantage and it is much smaller than its rivals."
Claimsnet has 1,000 clients. The company posted $154,653 in revenues last year and lost $4.6 million as it waived subscription fees in an effort to attract health care providers.
Even with Claimsnet's less than stellar financials and underdog status, one might view the dot-com tag as a magical plug. But think again. There have been 25 Internet initial offerings this year, of which 9 ended with dot-com. Those 9 deals are up 154 percent on average, compared to an average gain of 220 percent for the other 16, according to CommScan Equidesk.
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