IPO Tracker: August Slowdown?
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Typically, August is a slow period in the IPO market, as investment bankers go on vacation. But the IPO market has been surging lately - even with a falling Nasdaq. In fact, August has 80 deals planned. But if Nasdaq continues to have problems, the IPO market will likely slow considerably.
However, there are strong IPOs lined-up for next week.
There is McData. The company develops switches and software solutions for the fast-paced SAN (storage area network) market. The company has been effective at creating product sales, such as by signing deals with industry leaders like EMC and IBM. Hey, then again, McData is majority-owned by EMC.
In the first six months of 1999, the company had $34 million in revenues. In 2000, revenues were $103 million and profits were $10.8 million.
Next, take a look at Equinix. The company is the developer of Internet Business Exchange centers (IBX centers). It is in these facilities where companies can interconnect with a variety of top-notch bandwidth providers and other high-end Internet service providers. Currently, Equinix has centers in Washington, DC, New York, and of course, Silicon Valley. The company plans five more facilities by May 2001.
The company is early-stage, with its first customer signed in 1999. Also, besides an accumulated deficit of $66.6 million, the company has $214 million in debt.
The lead underwriter is Goldman Sachs and the price range is $10-$12 (the company intends to issue 20 million shares). The proposed ticker symbol is EQIX.
Another strong prospect is Element K. The company is an e-learning play that is focuses on the corporate and government markets. Element K's system not only makes use of message boards, multimedia and simulations, there is also extensive reporting and tracking (so Corporate American can make sure employees are learning, not playing around on the Net).
In all, the company has more than 400 online courses, which cover about 2,600 hours of training. Customers include American Express, IBM, Intel and even the State of Texas.
The lead underwriter was CS First Boston and the price range is $10-$12 (the company plans to issue 5.5 million shares). The proposed ticker symbol is LMNK.