IPO calendar chock-a-block full
By John E. Fitzgibbon Jr.
Red Herring Online
March 26, 1999
The new issues calendar for next week has expanded to 11 IPOs: four Internet-related offerings, one large deal (a proposed $2.45 billion Pepsi Bottling Group -- proposed symbol: PBG), five shopworn offerings that had been scheduled for last week, and two others.
IPO calendar chock-a-block full
Net IPOs only go one way
EBay files for secondary offering
Despite the variety of deals, technology continues to dominate IPOs heading for investors' pockets. Whether the market is up or down, Internet offerings show little sign of weakness -- in fact, just the opposite, as the size of the deals and their offer prices are bumped up daily.
Here's what's coming out of the pipeline.
Priceline.com won a controversial U.S. patent for its reverse-auction model.
Ziff-Davis announced the spinoff of ZDNet and heavy staff cuts the same day.
We named iXL "best predator" in September 1998 for its aggressive acquisitions.
Claimsnet.com, based in Dallas, Texas, is an electronic commerce company providing health care transaction processing for the medical and dental industries by means of the Internet. This has been an on-again/ off-again deal since it initially filed in September 1997. Cruttenden Roth added ".com" to the company's name. Click for details.
PLX Technology develops and supplies input/output connectivity solutions that accelerate and manage the transfer of data in high-performance embedded systems. The company is located in Sunnyvale, California.
If it's not Internet, don't look for soaring aftermarket action. Click for details.
Priceline.com is a pioneer of a new type of e-commerce, using the Internet to save money on a wide range of products and services. Its key phrase is "name your price." The company is based in Stamford, Connecticut. When the offering was filed, IPO players claimed it would be the hottest IPO ever, topping Theglobe.com's first-day gain of 606 percent. But times have changed.
Lately, bankers have been doubling the proposed offering prices, then pricing deals even higher after that. This pre-IPO posturing holds down the huge gap-up opening gains. Nevertheless, Priceline.com is expected to be the deal of the week. Click for details.
Based in San Francisco, California, ZDNet is an online business publisher and a provider of technology-related content to Internet users worldwide. The question remains, How high will the IPO trade in the aftermarket? Some experts think between four to eight dollars above the offering price. Click for details.
LOOKING FARTHER OUT
Time won't be slowing this market down. The following is a preliminary list of IPOs for the week of April 5, 1999.
iTurf is a provider of Internet community and e-commerce services focused primarily on Generation Y. Generation Y is comprised of 56 million people between the ages of 10 and 24, and is the fastest growing demographic group under age 65 in the U.S., accounting for over $278 billion of disposable income. iTurf is an online "home turf" where members of Generation Y can interact and shop in a domain of their own, away from the pressures of parents and school. The company operates out of New York City.
Once again, if it is an Internet deal underwritten by major bankers, expect a soaring aftermarket performance. Click for details.
iXL Enterprises provides Internet strategy consulting and comprehensive Internet-based solutions to Fortune 1000 companies and other corporate users of information technology. The company is based in Atlanta, Georgia.
It's still an Internet-related deal, but experts don't think it will have the same aftermarket snap as a Priceline.com. Click for details.
Rhythms NetConnections is a service provider of high-speed local access networking solutions. Through the company's packet-based network, multiple users on a single connection are able to simultaneously access the Internet and private networks. Rhythms services San Diego and has begun service in nine additional markets -- San Francisco, San Jose, Oakland/East Bay, Los Angeles, Sacramento, and Orange County in California; Chicago; Boston; and New York -- and expects to service an additional 23 markets in 1999. It has signed interconnection agreements with Ameritech, Bell Atlantic, BellSouth, GTE, Pacific Bell, and US West. The company is based in Englewood, Colorado.
Again, the magic word is Internet. Click for details.
USinternetworking's services make it possible for its clients to use business software applications without the cost and burden of owning or managing the underlying technology. The company is located in Annapolis, Maryland.
IPO investors and traders like the stock, but don't believe it is in the same class as Theglobe.com. Click for details.
CLAIMSNET.COM
www.claimsnet.com
Proposed symbol CLAI
Offering 2,500,000 shares at $7-$9
Manager Cruttenden Roth
Trading outlook C
Back to story.
PLX TECHNOLOGY
www.plxtech.com
Proposed symbol PLXT
Offering 3,300,000 shares at $8-$9
Manager Merrill Lynch
Comanager NationsBanc Montgomery
Trading outlook B
Back to story.
PRICELINE.COM
www.priceline.com
Proposed symbol PCLN
Offering 10,000,000 shares at $7-$9
Manager Morgan Stanley Dean Witter
Comanagers BancBoston Robertson Stephens; Donaldson, Lufkin & Jenrette; Merrill Lynch
Trading outlook A+
Back to story.
ZDNET
www.zdnet.com
Proposed symbol ZDZ
Offering 10,000,000 shares at $11-$13
Managers Goldman Sachs; Donaldson, Lufkin & Jenrette
Comanager Hambrecht & Quist
Trading outlook A+
Back to story.
ITURF
www.iturf.com
Proposed symbol TURF
Offering 3,700,000 shares at $10-$12
Managers BT Alex. Brown; Hambrecht & Quist
Comanager CIBC Oppenheimer
Trading outlook A+
Back to story.
IXL ENTERPRISES
www.ixl.com
Proposed symbol IIXL
Offering 8,000,000 shares at $11-$13
Manager Merrill Lynch
Comanagers Donaldson, Lufkin & Jenrette; BancBoston Robertson Stephens; NationsBanc Montgomery
Trading outlook B+
Back to story.
RHYTHMS NETCONNECTIONS
www.rhythms.net
Proposed symbol RTHM
Offering 9,375,000 shares at $15-$17
Manager Merrill Lynch
Comanagers Salomon Smith Barney; Hambrecht & Quist; Thomas Weisel Partners
Trading outlook A+
Back to story.
USINTERNETWORKING
www.usinternetworking.com
Proposed symbol USIX
Offering 5,000,000 shares at $11-$13
Manager Credit Suisse First Boston
Comanagers Bear Stearns; BT Alex. Brown; Legg Mason Wood Walker
Trading outlook B
Back to story.
Ratings explained
Rated A Hot. IPO is expected to start trading 2 points or more above its initial offering price.
Rated B Good. IPO is expected to start trading 1 to 2 points above its initial offering price.
Rated C OK. IPO is expected to start trading 1/2 to 1 point above its initial offering price.
Rated D Has a chance. IPO is expected to start trading flat to up a 1/2 point above its initial offering price.
Claimsnet.com
PLX Technology
Priceline.com
ZDNet
iTurf
iXL Enterprises
Rhythms NetConnections
USinternetworking
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