Calm Week for IPOs
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Even the biggest IPO in US history was a nonevent this week. AT&T Wireless went public. The company set aside 10 percent of the IPO stock for all employees of AT&T. Reported stories, such as from the Wall Street Journal, indicated that some of these employees borrowed large sums in order to get shares.
Well, the IPO was ho-hum. On its first day of trading, the stock closed at $31-7/8, which was up $2-3/8. Yet, if this IPO were launched several months ago, the response would have likely been much stronger. Then again, it would have probably eroded, such as was the case with Palm.
With investors hostile towards IPOs, do not expect much action for next week. Simply put, the environment is brutal.
Although, ON Semiconductor will likely be ON for its IPO. Actually, it is a real company. And investors want real. Last year, the company had $1.7 billion in revenues and $59 million in profits.
The World Semiconductor Trade Statistics indicate that ONs addressable marketplace was $19.5 billion in 1999 and is expected to be $25.1 billion in 2002.
The lead underwriter is Morgan Stanley and the proposed ticker symbol is ONNN. The price range is $15-$17.
Digitalwork.com is a provider of online services to the small business market. It is a cool site, which helps business manage such things as marketing, recruiting, and getting sales leads. Digitalwork.com has also been smart in distributing its services to major online hubs, such as IBM, PurchasePro.com and AT&T. In all, over 100,000 small businesses use the service.
But investors may be gun shy. The company is very raw, with only $1.9 million in revenues last year. Whats more, losses were $15.3 million.
The lead underwriter is Lehman Brothers and the proposed ticker symbol is DWRK. The price range is $11-$13.
Another one that may have trouble is ClientLogic. Basically, the company wants to be the one-stop shop for companies to build their e-commerce presences. But, in reality, the company provides mostly call center services, which is a tough business.
Although, the company does have sales of $177 million (in 1999). But losses are $42.9 million.
The lead underwriter is Salomon Smith Barney and the proposed ticker symbol is CLGC. The price range is $14-$16.
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