A spring rain of new IPOs
By John E. Fitzgibbon Jr.
Red Herring Online
April 17, 1999
redherring.com
After last week's breather -- five new issues priced but no moonshots -- the IPO calendar kicks into overdrive for its run to the end of April.
At latest count, 24 are scheduled to come to market during the next two weeks. Listed among that number are a handful that could soar into the IPO Hall of Fame. At least seven underwritings (all Internet-related) carry a consensus rating of A+.
The loudest thunder will come during the week of April 26. That week's calendar lists several long-awaited super-heavyweight IPOs -- Barnesandnoble, eToys, Marimba, and TheStreet.com.
The week of April 26 should add to the already populous IPO Hall of Fame.
The new issues market has been quiet lately -- a little too quiet.
PRELIMINARY IPO CALENDAR FOR THE WEEK OF APRIL 19, 1999
San Francisco-based Butterfield & Butterfield, Auctioneers announced plans to unveil a trading category on the eBay (EBAY) Web site. Since the company released this news, a week ahead of its proposed public offering, the consensus rating has been increased to A.
Reston, Virginia-based Musicmaker.com allows people to create their own music on CDs through the Internet. Fortunately, it does not follow the same model as the troubled CDNow (CDNW). Consensus rating is good -- a solid B -- but no moonshot here.
Net Perceptions provides marketing solutions for Internet retailers. The customer base includes Barnesandnoble.com, CDNow, Egghead.com (EGGS), Preview Travel (PTVL), Ticketmaster Online-CitySearch (TMCS), and Value America (VUSA). With a list like this, how can you miss? It's another A+-rated issue that is getting hotter.
Proxicom provides Internet solutions to the Global 1,000 companies and services over 600 clients. Sales have grown at a compounded 50 percent rate over the past three years and the company has consistently posted profits, except for 1998. Not many Internet companies have demonstrated the ability to be profitable, one reason why the A-rated IPO appears on everybody's want list.
For details on all these offerings, go to page 2.
PRELIMINARY IPO CALENDAR FOR THE WEEK OF APRIL 26, 1999
Barnesandnoble.com, located in New York City, is Amazon.com's (AMZN) most formidable competitor. Amazon.com has become an Internet legend, and many think Barnesandnoble will be one, too. The A+-rated deal is on the "Pick Of The Week" short list.
Comps.com gets high marks because of its Internet connection. But its business -- commercial real estate -- drags down its rating to a B. The company is based in San Diego, California.
In less than two years, eToys has come from nowhere to become the leading Internet toy retailer. Located in Santa Monica, California, the A+-rated deal is on the "Pick Of The Week" list.
IXL Enterprises is a provider of Internet consulting, development, and management services to the Fortune 1,000 companies. IPO traders think A+-rated iXL is in the same league as DoubleClick (DCLK) and Vignette (VIGN), both of which landed in the IPO Hall of Fame.
Marimba is a provider of Internet-based software management solutions that enable companies to expand their market reach. The big money-makers in the California Gold Rush of 1849 were the merchants who sold picks, shovels, and pans to the prospectors; Marimba supplies the tools for those going on the Web. This A+-rated deal should be big.
Mpath Interactive, based in Mountain View, California, develops technologies that enable Internet sites to create and manage live communities. Like Marimba, it's an A+-rated Internet toolmaker whose IPO could shot the moon.
Razorfish specializes in high-end Internet development and enhancement services. The company's sales are exploding. Razorfish reported a jump in revenues to $13.8 million (pro forma 1998 $30.9 million), up from 1997's revenues of $3.6 million. Here's another IPO that could do better than its consensus rating of A.
TheStreet.com is an online, for-pay financial news service going head-to-head with CBS MarketWatch, Dow Jones Interactive, and the Motley Fool. The company was founded by Wall Street hedge fund manager James Cramer and Dr. Martin Peretz and has financial backing from Oak Investment, Chase Venture Capital, Softbank Technology Ventures, Constellation Venture Capital, Spinnaker Clipper Fund, and the New York Times. This lineup of backers is like throwing kerosene on a roaring fire. This A+-rated deal is another "Pick Of The Week."
For details on all these offerings, go to page |
