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Technology Stocks : mapquest.com (MQST) IPO - will it be hot? -- Ignore unavailable to you. Want to Upgrade?

To: Islander99 who wrote (10)	5/3/1999 2:47:00 PM
From: $Mogul	Respond to of 42

By Reshma Kapadia NEW YORK, May 3 (Reuters) - Buried amid the hype of tonight's Goldman Sachs initial public offering are a batch of what some analysts are calling "quality Internet" offerings because of leadership in their respective areas. "There are a number of companies with offerings (this week) that are not making money, but make up for it in other ways such as novel technology or strong brand name, which are two valuable things for an Internet company," said Paul Bard, an analyst at Renaissance Corp.'s IPO Fund. Flycast Communications Corp. <FCST.O>, Media Metrix Inc. <MMXI.O> and MapQuest.com Inc. <MQST.O> have strong brand recognition and are dominant players in their fields. analysts said. Web advertising network Flycast is expected to offer 3.0 million shares through lead underwriter BT Alex. Brown in an increased price range of $21 to $23. The San Francisco-based company brings advertisers and Web sites together to fill unsold ad space. Its main competitor is Ad Auction.com, but analysts said Flycast is the leader in the space. The company sells some of the 75 percent of unsold ad space on the Internet at lower rates, mostly to clients who want direct market response versus brand recognition, which means its clients do not care as much where the ad is placed. Such direct marketing will account for about 65 percent of total Web advertising in 2002, according to Forrester Research. Analysts expect it to have a strong reception, but for the longer-term, they said the company may have to adapt because the direct response space may lose its importance down the line. Media Metrix is also expected to see strong interest, especially because it has dominated the all-important area of Web-tracking. Although Nielsen Media Research's <NMR.N> Nielsen Media Reach/Net Ratings is making an aggressive push, especially as of late, to give Media Metrix some competition, analysts said Media Metrix has the larger market share and the brand recognition needed for an Internet company going public. The New York-based firm will offer 3.0 million shares in a range of $12 to $14 through lead underwriter Donaldson Lufkin & Jenrette. Both Nielsen and Media Metrix are fighting to create the much-needed Internet standard for audience measurement, which is used by publishers and ad buyers. Media Metrix uses a sample of more than 40,000 individuals at home and work for its measurements. "What is needed in the space is one standard, which means that one or the other (Media Metrix or Nielsen) has to go away or be bought," said Marissa Gluck, an analyst at Jupiter Communications. She said Media Metrix is currently winning the war because it has a larger market share. MapQuest.com Inc. is another offering that is expected to be hot. The online map and directions provider, which also has few competitors, plans to offer 4.6 million shares in an increased range of $12 to $14 through lead underwriter BancBoston. The company supplies its products to every major portal and has widespread distribution on the Web, analysts said. The industry has a high barrier to entry, Bard said, noting that the Mapquest.com has had a business offline for some time. ((Reshma Kapadia, Wall Street Desk (212) 859-1730)) REUTERS * end of story *