To: tahoeman who wrote (12122 ) 8/15/1998 9:25:00 AM From: Brady B. Read Replies (1) | Respond to of 18444
On IPO's: Market volatility scares new stocks away from debuts By Holly Rosenkrantz NEW YORK, Aug 12 (Reuters) - A handful of companies said Wednesday they decided to put off plans to sell shares to the public, blaming the see-sawing stock market for hurting the demand for their initial public offerings. Five companies, which include an airport shuttle business and a supplier of office products, did not set a date for when their deals will resurface. Also, an IPO from Cincinnati Bell Inc. <CSN.N> spin-off Convergys Corp. <CVG.N> was slimmed down late Wednesday in a sign of weak demand for what was expected to be a hot deal. The company will sell 14 million shares rather than its originally planned 18 million, and will set the price on the shares in the $15-$17 range rather than an initially expected $17-$19. The stock is expected to debut on the public markets Thursday. This new round of companies that have decided to postpone their plans to go public or slim down their offerings are the latest victims of a jittery climate for new issues, in which high-profile deals from Del Monte Foods Co. <DLM.N> and Union Pacific Corp.'s <UNP.N> trucking unit Overnite Corp. <OVNT.O> have also been pulled. Most new corporate bonds have not made it to market either. IPO experts predict the rollercoaster market, which in recent weeks has fallen from its high-flying days of mid-July, is likely to lead other companies to put their deals on hold. "These postponements, cancellations will continue through August since companies will not be interested in reducing their price to their deals done in this buyers market," said David Menlow, president of the IPO Financial Network in Springfield, N.J. However, Internet-related start-ups -- many of which have no immediate plans to turn a profit -- remain the only type of new stock that continues to excite investors. GeoCities <GCTY.O>, which runs a service for creating online communities that is one of the most popular spots on the World Wide Web, went public Tuesday, the same day the key index of technology-related stocks, the Nasdaq Composite Index plunged 46.5 in its sixth-largest point loss ever. The stock more than doubled from its $17 a share IPO price to close at $37.31, and then shot up further Wednesday, gaining $8.3125 to close at $45.625 on Nasdaq. The success of the offering has kept most of the other hot Internet deals on the calendar for the next few days, though demand for new issues such as CitySearch Inc. <CTSY.O>, Entrust Technologies <ENTU.O> and 24/7 Media <TFSM.O> is not expected to match that of GeoCities. That company is considered in the same league as high-fliers Yahoo! Inc. <YHOO.O> and Amazon.com Inc. <AMZN.O> in terms of recognition among Web users. "As long as the companies have something to do with the Internet, people chase after them," Vincent Slavin, an IPO analyst with Cantor Fitzgerald, said. "They think they're getting in on the next big thing." 22:36 08-12-98