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RealTime IT News

September 'Net IPOs Shake Summer Slump

September was a schizophrenic month for Internet IPOs. After nearly two weeks of total inactivity, Internet IPOs flooded the market in the latter half of the month. By the time the smoke cleared, September was tied with August and May for the third-highest number of Internet IPOs in 1999.

More significantly, the average first-day performance of 'Net IPOs in September was considerably higher than August's average. Relative to the average offer price, September's new Internet stocks finished their respective opening days of trading up 72%, compared to the 45% average first-day gain in August, still the lowest monthly average of the year.

Two 'Net IPOs had monster debuts - infrastructure hardware provider Alteon WebSystems and e-mail outsourcing and software company Kana Communications.

Offering 4 million shares at $19 each, Alteon closed on Sept. 24 at $74.94, a 294% gain that gives ATON the fourth-best debut of 1999.

Kana, meanwhile, now owns the 10th-best debut, closing on Sept. 22 at $51.50 after offering 3.3 million shares at $15 each.

Only one company had a disastrous opening - sweepstakes Web site Webstakes.com, which finished its first day of trading on Sept. 24.

Let's look at the year so far:

Internet IPOs By Month

January - 4
February - 11
March - 13
April - 17
May - 26
June - 32
July - 35
August - 26
September - 26

Total - 190

Average First-Day Return By Month In 1999

January - 241%
February - 122%
March - 134%
April - 116%
May - 59%
June - 48%
July - 74%
August - 45%
September - 72%

10 Best Debuts of 1999

1. CBS MarketWatch.com (MKTW) (Jan. 15) - 474%
2. Ask Jeeves (ASKJ) (July 1) - 364%
3. priceline.com (PCLN) (March 30) - 331%
4. Alteon WebSystems (Sept. 24) - 294%
5. Healtheon (HLTH) (Feb. 11) - 292%
6. Ariba (HLTH) (June 23) - 291%
7. eToys (ETYS) (May 20) - 283%
8. Red Hat (RHAT) (Aug. 11) - 272%
9. Log On America (April 22) - 250%
10. Kana Communications (Sept. 22) - 243%

10 Worst Debuts of 1999

1. The Cobalt Group (Aug. 5), -24%
2. US SEARCH.com Corp. (June 25), -19%
3. BigStar Entertainment (Aug. 3), -18%
4. Webstakes.com (Sept. 24), -18%
5. Quotesmith.com (Aug. 3), -14%
6. 1-800-FLOWERS.COM (Aug. 3), -13%
7. Digital Lava (Feb. 17), -13%
8. ZipLink (May 26), -12%
9. Juno Online Services (May 26), -11%
10. Mortgage.com (Aug. 11), -11%

Here are the Internet IPOs from September and their first-day performances (following the list are links to stories containing debut percentages for all other 'Net IPOs this year):

Sept. 14 - PurchasePro.com (PPRO), 118%
Sept. 16 - Luminant Worldwide (LUMT), 47%
Sept. 16 - Garden.com (GDEN), 59%
Sept. 22 - Kana Communications (KANA), 243%
Sept. 22 - E.piphany (EPNY), 182%
Sept. 22 - Broadbase Software (BBSW), 95%
Sept. 23 - yesmail.com (YESM), 19%
Sept. 23 - eGain Communications (EGAN), 92%
Sept. 23 - Cybergold (CGLD), 33%
Sept. 23 - Ashford.com (ASFD), 0%
Sept. 24 - Webstakes.com (IWIN), -18%
Sept. 24 - NetZero (NZRO), 82%
Sept. 24 - Bluestone Software (BLSW), 25%
Sept. 24 - Alteon WebSystems (ATON), 294%
Sept. 24 - Keynote Systems (KEYN), 95%
Sept. 28 - Medscape (MSCP), 73%
Sept. 28 - FreeShop.com (FSHP), 13%
Sept. 28 - ITXC (ITXC), 135%
Sept. 29 - perfumania.com (PF), -4%
Sept. 29 - ftd.com (EFTD), 8%
Sept. 29 - Telemate.Net Software (TMNT), 1%
Sept. 29 - ShopNow.com (SPNW), 6%
Sept. 29 - NetSolve (NTSL), 46%
Sept. 29 - InterNAP Network Services (INAP), 165%
Sept. 30 - RADWARE (RDWR), 53%
Sept. 30 - Loislaw.com (LOIS), 4%


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