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Technology Stocks : IPOs: Too many, too fast, to little buyers? -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (67)	3/4/2001 8:02:47 PM
From: RockyBalboa	Read Replies (2) \| Respond to of 84

mad2, the underwriters did a remarkable job in AFCE on Friday, afterhours it was bid already at $21 Here is another one: Loudcloud (Nasdaq:LDCL) Mark Andreessen Floats Back in on Loudcloud By Emma-Kate Symons NEW YORK (Reuters) - Netscape co-founder Marc Andreessen is back. But could his timing be any worse? This week, when the market's appetite for youthful tech companies with no profits has all but disappeared, Andreessen, 29, plans to take his latest software venture Loudcloud Inc. public, in a $180 million new stock offering. When Web browser software firm Netscape had a share offering in the brave new economy world of 1995 (before being taken over by America Online) it inflated the Internet stock bubble and set off a long line of highly successful Web IPOs. With Loudcloud's Wednesday debut, Andreessen will be exposed to the full force of the bear market for technology stocks. And despite his clout, and the backing of powerful figures like Hollywood super agent Michael Ovitz, who sits on LoudCloud's board, some are questioning the wisdom of pushing out the IPO in such a harsh climate. ``I'm a bit amazed they have the gall to come out now,'' said George Nichols, an Internet analyst with Morningstar.com, a mutual fund information service. ``The IPO market is still pretty much dead and it is still so early in their life cycle.'' Sunnyvale, Calif.-based Loudcloud, whose software helps clients build and operate their online businesses, was formed in 1999 and had revenues of $6.5 million and losses of more than $100 million from February to October 2000. Loudcloud was forced to lower the price range of its offering to $8 to $10 in February, from $10 to $12, but it raised the number of shares on offer to 20 million from 10 million. The company predicted it will net about $165.8 million in proceeds if the 20 million shares go for $9 each, or the middle of the range. It expected in December to net about $100.7 million if it marketed 10 million shares at $11 each. About 67 million shares will now be outstanding after the IPO is completed, compared to 104 million shares in December. This puts the value of the company after its debut at more than $670 million, compared to the $1.3 billion Loudcloud originally expected. The IPO is being managed by Goldman Sachs and Morgan Stanley. Loudcloud's management team, which includes some familiar Netscape names, like chief executive Ben Horowitz, is seeking out more business from old economy clients like Ford Motor Co. (NYSE:F - news), rather than new Internet companies. Yet, the market remains treacherous for IPOs, of which there have been only fewer than a dozen in 2001. Technology stocks crumbled on Friday, with the Nasdaq Composite index carving out another 26-month low, to close at 2,117.63, as investors buckled under the weight of an earnings warning from software giant Oracle Corp. (NasdaqNM:ORCL - news). The Composite index is now off nearly 60 percent from its all-time high nearly a year ago. ``You'd have to wonder what's the reason for buying this IPO when there are plenty of high-risk technology stocks out there that have fallen to cheap levels,'' said Nichols. Despite the gloom, this will be the busiest week for IPOs since late last year with up to 6 companies scheduled to debut, and the potential for around $800 million to be raised. The most closely watched will be Loudcloud, and biotech firm Seattle Genetics, which specializes in the development of cancer drugs. Seattle Genetics, whose IPO is being managed by J.P. Morgan and CIBC World Markets, is backed by none other than Microsoft's Bill Gates (news - web sites) and Paul Allen. ``We've got a little action on the calendar this week,'' said Frank McGee, analyst at research firm Commscan. ``It's Marc Andreessen versus Bill Gates and Paul Allen -- there are some big backers there.''