RealTime IT News

Internet IPO Launch Pad Gathers Dust

For the second month in a row, the Internet IPO market was stagnant, with only a half-dozen ticker debuts in May. June promises to be not much better.

If you exclude January, which traditionally sees few public offerings, May was the quietest month for 'Net IPOs in the past year and a half.

And while the average first-day results were slightly higher than April's, the 38 percent posted in May is the second-worst monthly showing since we began tracking Internet IPO performances in January 1999.

There are no more than a dozen or so Internet companies slated to begin trading in June, but you can be sure that several, or maybe even most, will postpone or delay their public offerings if the market climate doesn't improve. Indeed, that's why about half of them are on the launch list for late June; that gives them plenty of time to see which way the wind is blowing.

Through the first quarter of this year, Internet IPOs were on track to exceed 1999's total of 258. Now, unless things heat up considerably, even reaching 150 may be a challenge.

What a difference a meltdown makes.

Month This year 1999
January 5 4
February 2711
March 2713
April 1317
May 626
Total 78 71

Average First-Day Return (By Month)

Month This Year 1999
January 160% 241%
February 126% 122%
March 99% 134%
April 31% 116%
May 38% 59%

10 Best Internet Debuts of 2000

Company IPO Date Gain
webMethods Feb. 11 508%
Crayfish March 8 414%
Selectica March 10 371%
FirePond Feb. 4 356%
Neoforma.com Jan. 24 303%
Extensity Jan. 27 256%
ArrowPoint March 31 248%
GigaMedia Feb. 17 226%
net.Genesis Feb. 29 216%
eMerge Interactive Feb. 4 215%

10 Worst Internet Debuts of 2000

CompanyIPO DateGain/Loss
ARTISTdirect March 28 -22%
AsiaContent.comApril 12 -21%
coolsavings.com May 19 -21%
PartsBase.comMarch 22 -12%
ImproveNet March 16 -12%
Hanaro Telecom March 29 -9%
HealthStream April 11 -6%
VarsityBooks.comFeb. 15 -1%
SAVVIS Communications Feb. 15 0%
Pets.comFeb. 11 0%

Here are the May Internet IPOs, listed by date, with their first-day performances: