IPO outlook: When the Web isn't everything

Article Abstract:

Three Internet-related companies generated disappointing results in the first days of their initial public offerings as of Dec 11, 1998, as opposed to the recent boom of several other online offerings. AboveNet Communications, a manufacturer of products that facilitate electronic-commerce transactions that is led by bank underwriter CIBC Oppenheimer, initially presented its five million shares at $13 each. The San Jose-based firm's price quickly peaked at $23.75 but its price plummeted to close at $14.3125 for a 10% premium. Internet America opened its 2.3 million shares at $13 apiece through investment banking company Hoak Breedlove Wesneski, but the profitable Dallas-based ISP showed only a 14% gain of $14.875. Claimsnet.com's debuted its 1.6 million shares at $7 each through lead underwriter Strasbourger Pearson Tulcin Wolff, but the Dallas-based online health-care claims processor's price slipped to $6. Analysts attributed these lukewarm results to the absence of top-shelf underwriters.

Telephone and telegraph apparatus, Telephone Apparatus Manufacturing, Telegraph & other communications, Telephone Communication, Data Communications Equip, Insurance Claims Processing DP Services, Data Processing Services, Other Telecommunications, Data processing and preparation, Other Telecom Services, Computer networks, Internet, Internet service providers, Telecommunications industry, Health care industry, Equipment and supplies, Telecommunications equipment industry, Data communications equipment, Insurance claims adjustment, Company public offering, Claims adjustment (Insurance), AboveNet Communications Inc., Claimsnet.com Inc., Internet America Inc.

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IPO outlook: newest hot Internet issue raises question: how to price it fairly?

Article Abstract:

Pricing IPOs has always been an artful science, but with the way the market takes off on new Internet-related offerings, the companies involved and their underwriters may have to adjust the formulas that are currently in use. Theglobe.com Inc., for instance, priced 3.1 million shares at $9. Upon opening its first day of trading November 13, 1998, the price went immediately to $90 and climbed as high as $97. After about two weeks on the board it has leveled out to about $40.

Securities issued, listed, Security and Commodity Services, Securities & Commodities Services, Securities, Commodity Contracts, and Other Financial Investments and Related Activities, Prices and rates, Securities prices, Abstract, Securities industry, Going public (Securities)

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Cyberian IPO rides Internet excitement to solid premium

Article Abstract:

Cyberian Outpost Inc. extended a successful series of Internet-related initial public offerings. Cyberian, an Internet-based seller of computer products, sold four million shares through BT Alex. Brown Inc. The IPO produced $72 million for the company. Cyberian's original offering price was $18 per share. This was higher than the predicted price of $13 to $15 a share.

Comment:

Extends a successful series of Internet-related initial public offerings

Company Planning/Goals, Video Retailing Service, All Other Information Services, Home shopping, Article, Cyberian Outpost Inc.

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