Netpliance, Universal Access kick off Universal Access doubles; Netpliance cools after open
By Steve Gelsi, CBS MarketWatch
Last Update: 7:32 PM ET Mar 17, 2000
New! IPOWatch section
Net Stocks
NEW YORK (CBS.MW) -- Universal Access shares almost tripled and Netpliance stock rose above its offering price Friday as Wall Street gave a friendly greeting to the latest stock-market debutantes.
With the tech-laden Nasdaq solidly higher, Netpliance and Universal Access posted strong gains. But a new U.S. listing from Uproar fell below its offering price.
Only Universal Access and Integrated Information Systems rose convincingly in the aftermarket, a possible signal that the glut of deals so far this year may finally be catching up with the IPO sector.
It's another sign that the IPO market, except for the hottest deals, may be returning to earth. Two out of four new issues that fell below their offering prices on Thursday continued to drop on Friday. See related story.
In 1999, 75 IPOs were completed, raising $8.4 billion by March 16. This year, 112 deals had raised $24.4 billion as of March 16, according to data from CommScan Analytics.
Universal Access
Universal Access (UAXS: news, msgs) closed at 37, up 164 percent from its $14 price. The stock opened at 28 and climbed on volume of 13.5 million.
The company priced at $14, above its $11-to-$13 price range, in a sign of strength ahead of its open.
Universal Access may have benefited from the star power of Internet Capital Group (ICGE: news, msgs), a major shareholder. Shares of Internet Capital, a holding company for Web firms, debuted Aug. 4 at an offering price of $12 a share. The stock has gained 1,857 percent since then, according to CommScan Analytics. It split 2-for-1 on Dec. 2.
In a bullish sign, Chicago-based Universal Access boosted its price range from $8 to $10 per share.
The company provides network services to more than 75 clients, including AboveNet Communications, BCE Nexxia, Fiber Network Solutions, GTE Internetworking, IDT and Teleglobe Communications.
Universal Access bills itself as a Web-enabled, business-to-business intermediary for service providers and transport suppliers.
"Everyone seems to like this deal -- I am one of them," said John Greer of IPO Pros.
Universal Access was looking for $154 million in proceeds with lead underwriter Goldman Sachs.
Universal Access Chief Executive Patrick C. Shutt said the company's specialty is "stitching networks together," to improve the performance of the Internet.
It's currently building eight new database centers and will have 15 up and running by the end of the year. Analysts project positive cash flow by 2003 after a big buildup.
Integrated Information Systems
Tempe, Ariz.-based Integrated Information Systems (IISX: news, msgs) closed at 20 15/16, up 40 percent from its $15 price.
The provider of Internet business solutions opened at 19 and rose in the aftermarket on volume of 6.8 million.
Netpliance
Netpliance (NPLI: news, msgs) closed at 22 1/16, a rise of 23 percent over its $18 price. The stock opened at 24 3/4 and dipped on volume of 12.6 million.
The Austin, Texas, company sells devices that tap into the Internet, but it's positioning itself as a service provider across multiple platforms such as hand-held computers and wireless phones.
"We're not a hardware company; we're all about the service and the portal," said CEO Kent Savage.
The company is eyeing the roughly 54 million households that don't have Internet access, especially Americans over 40 years old.
Along with lead underwriter Donaldson, Lufkin & Jenrette, it was seeking $128 million in proceeds.
The company priced its shares at $18 per share, above its $15-to-$17 range.
It also made two bullish moves on Thursday by upping its price range to $15 to $17 and increasing the size of its offering to 8 million shares from 7 million.
Disney and US West have stakes in Netpliance, which advertises an Internet access device at a price of $99, plus a monthly service fee of $21.95. It was one of several ".com" companies to advertise on the Super Bowl.
"They have a very short operating history, but a pretty novel business model," said Greer of IPO Pros. "I'd make the short-term bet on the IPO. Long term? Let's see a couple more quarters of revenue first."
Uproar
Uproar (UPRO: news, msgs) fell below its offering price in Its U.S. debut.
The media company operates an entertainment Web site that features, among other things, game shows such as "The Family Feud."
The stock, which has traded on Easdaq since 1997, opened at 33 3/4, close to its $33.88 offering price. It closed at 26 3/4 on volume of 2.3 million.
Caldera Systems
Caldera Systems (CALD: news, msgs) upped its price range ahead of its debut. It now expects to offer its shares at between $10 and $12 rather than between $7 and $9.
The Orem, Utah, vendor of Linux software products may be headed for big gains, but it's unlikely to race out of the gates to the degree that other Linux-related IPOs have. VA Linux Systems (LNUX: news, msgs) and Red Hat (RHAT: news, msgs), to name two, debuted at warp speed last year.
Caldera is offering 5 million shares in a bid to raise about $55 million with Robertson Stephens. It's not expected to debut until next week.
Beating the IPO drum
Beatnik Inc. said late Friday that it has filed with the Securities and Exchange Commission for an initial public offering to be led by Robertson Stephens, along with CIBC World Markets and Piper Jaffray.
San Mateo, Calif.-based Beatnik was founded in 1996 by musician Thomas Dolby, whose best-known songs are "She Blinded Me With Science" and "Hyperactive." He now goes by the name Thomas Dolby Robertson.
According to a Beatnik news release, the company brings interactive music and sound to the Web through its technology, content and community.
cbs.marketwatch.com |
