To: IFLY_Trader who wrote (7078 ) 6/11/1999 9:13:00 PM From: Spytrdr Respond to of 13953
"COMMSCAN CITES PLAYERS IN ONLINE INVESTMENT BANKING ARENA NEWS ROUNDUP INVESTMENT BANKS MOVING ONLINE By Gary James & Tom Zita CommScan Analytics The role of the e-underwriter has evolved quickly, and is becoming a prominent position for several investment banks. To date, 87 deals have priced utilizing the services of an e-underwriter, a syndicate member that issues shares in its public offering strictly via the Internet. Thus far, seven banks have filled the role, Wit Capital, Charles Schwab, DLJdirect, E*TRADE, E*OFFERING, W.R. Hambrecht, and Discover Brokerage Direct. W.R. Hambrecht's deal, Ravenswood Winery (RVWD), was actually one that it lead managed using its Open IPO format which allows investors to bid for shares online. The deal was priced at $10.50, the low-end of its range, and has traded relatively flat since. W.R. Hambrecht currently has another deal in backlog that will be priced using the same format, Salon.com (SALN), which is expected for the week of July 21st. The 87 deals that used an e-underwriter have returned an average of 32%. However, the 63 that were IPOs have returned an average of 48%. Also, 54 of the deals that utilized an e-underwriter were Internet-related, 40 of which were IPOs. Credit Suisse First Boston has played the role of bookrunner on the most deals that utilized an e-underwriter. With 26 deals of this nature, CSFB has nearly doubled second place Donaldson Lufkin & Jenrette's total of 13. Notably, the e-underwriter for every one of CSFB's deals was Charles Schwab, while the e-underwriter for 11 of DLJ's 13 deals was DLJdirect, with Wit Capital on two deals and E*TRADE and E*OFFERING on one deal apiece. Typically, share participation among e-underwriters is equivalent to that of the underwriting syndicate, and more specifically, that of the major bracket. Of the 87 deals with e-underwriters, 18 were not syndicated. Within the remaining 69 that were syndicated, 13 e-underwriters received less than the major underwriting bracket, 10 received more shares, and 46 received the same number. Wit Capital's participation on its own IPO, which priced on June 3rd, was 1.82 MM shares. Aside from this deal, the largest participation an e-underwriter received on any deal was the 940,000 shares that Wit received on Barnesandnoble.com's (BNBN) IPO. The deal priced on May 25th and raised $450 MM via the sale of 25 MM shares. Goldman Sachs (sole-bookrunner) and Morgan Stanley led the deal for the online retailer of books and information products. Additional information is available upon request. E*TRADE holds a minority equity interest in E*OFFERING and the two companies have entered into a contractual relationship. In all other respects the two companies are independent enterprises and the actions, commitments or responsibilities of one shall not be attributed to the other. While the information contained in this Article and the opinions contained herein are based on sources believed to be reliable, E*OFFERING Corp. has not independently verified the facts, assumptions, and estimates contained in this Article. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness, or correctness of the information and opinions contained in this report."