Internet IPOs Begin Year With A Blast
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The Internet IPO floodgates opened in February, with 27 Net companies going public after a quiet January.
The low number (five) of Internet IPOs in January was no surprise; it's traditionally a slower month for new offerings. But February was far busier than the same month a year ago, when only 11 Internet tickers debuted.
Unlike last summer, however, when excess supply of Internet IPOs drove down first-day performances, the 27 February offerings posted an average first-day gain of 126 percent, better than the 122 percent average gain in February 1999.
Eight of the 32 Internet IPOs this year have at least tripled in price in their respective first days on the ticker -- that's one out of four. Conversely, only three failed to gain any altitude.
Early last month I had predicted a huge debut for webMethods ("don't be surprised by an opening-day gain of 300 percent or more"). I thought I was being bold, but WEBM's 508 percent increase made my forecast appear pretty timid. It also may not be matched by another Internet company this year. In fact, webMethods' rocket blast topped all 258 Internet IPOs from last year.
Here's how things looks so far compared to 1999:
Average First-Day Return (By Month)
10 Best Internet Debuts of 2000
|eMerge Interactive||Feb. 4||215%|
|Avenue A||Feb. 29||200%|
|Delano Technology||Feb. 9||181%|
10 Worst Internet Debuts of 2000
|SAVVIS Communications||Feb. 15||0%|
|HealthGate Data||Jan. 26||7%|
|Lending Tree||Feb. 16||50%|
Here are all of the Internet IPOs from January and February, along with their first-day performances: