A Light Menu Of Internet IPOs

If a light diet is best after Thanksgiving, then Internet IPO investors
should be in good shape, for only a small number of new Net stocks are
scheduled to be served up this week.

The menu features only seven companies, ranging from a tiny appetizer
(Streamedia Communications’ $8.5 million offering) to one relatively
rich item (AGENCY.COM’s $64.9 million IPO).

Based in New York’s Silicon Alley, AGENCY.COM plays in an increasingly
crowded field — Web site consulting and design. Among its competitors
are iXL Enterprises (IIXL),
USWeb/CKS (USWB)
and Modem Media.Poppe Tyson
(MMPT)
.

With revenue of $56.5 million in the first three quarters of this year
(triple the revenue for the same period in ’98), AGENCY.COM isn’t in the
same league as iXL ($142.6 million through Q3) or USWeb/CKS ($324
million), but compares favorably to Modem Media ($49.5 million) and
several other competitors.

And despite an aggressive acquisition strategy (eight companies since
1998), losses have been kept under control ($2.5 million in ’98 and $6.6
million this year).

AGENCY.COM’s stock debut may have had more fuel a few weeks ago, when
the consultants/designers sector was on a huge run, but it still has
firepower in the guise of Goldman Sachs, which is lead underwriter for
the offering of 5.9 million shares (in the $10-$12 price range). Nasdaq
ticker symbol will be ACOM. Look for this IPO to get a good reception
from the street.

Streamedia, on the other hand, may be a harder sell for investors. The
company, also based in New York, has only been in existence since April
1998 and has yet to generate any revenues.

But it’s full of big plans nonetheless. Streamedia intends to offer
audio and video programming on the Internet and counts among its
competitors audiohighway.com (AHWY)
,
SportsLine.com (SPLN)
and Yahoo (YHOO),
which earlier this year purchased broadcast.com.

With no track record, no revenues and lots of competition, look for
Streamedia to be tuned out by investors when it debuts. Lead underwriter
for the offering of 1 million shares at an expected price of $8.50 is
Redstone Securities. Streamedia will trade under the Nasdaq symbol
SMILU.


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