Internet IPO Market’s Long Holiday May Be Ending

With only seven public offerings in September, the Internet IPO market appears as sluggish as ever.

But all seven ‘Net ticker debuts came in the last third of the month, and though first-day returns remain modest, the recent increased activity could indicate a more interesting – or at least busier – fall.

Last month’s top Internet IPO, not surprisingly, belonged to an infrastructure company. Investors continue to offer much more support to infrastructure plays than any other Internet category.

CoSine Communications , a seller of switches and software that enable network service providers to offer customers VPNs, firewalls and IP networking services, gained 174% in its first day of trading on Sept. 26, closing at $63.06. COSN had offered 10 million shares at $23 each.

In the past six months, there have been only 62 Internet IPOs. This compares to 162 during the same period in 1999. And even with the glut of offerings last year, average first-day gains were consistently higher than during this year’s second and third quarters.

Here are the numbers for this year and last, through September:

Month This year 1999
January 5 4
February 27 11
March 27 13
April 13 17
May 6 26
June 11 32
July 13 35
August 12 26
September 7 26
Total 121 190

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%
June 41% 116%
July 63% 74%
August 14% 45%
September 57% 72%

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%
Storage Networks June 30 234%
GigaMedia Feb. 17 226%
net.Genesis Feb. 29 216%

10 Worst Internet Debuts of 2000

Company IPO Date Gain/Loss
iAsiaWorks Aug. 3 -27%
INTERLAND July 25 -26%
ARTISTdirect March 28 -22%
Avistar Communications Aug. 17 -22%
AsiaContent.com April 12 -21%
coolsavings.com May 19 -21%
ScreamingMedia Aug. 3 -13%
PartsBase.com March 22 -12%
ImproveNet March 16 -12%
RadView So

ftware

Aug. 9 -10%

Here are September’s Internet IPOs, listed by date, with their first-day performances:

  • Sept. 21 – Zengine (ZNGN), 9%
  • Sept. 21 – OmniSky (OMNY), 47%
  • Sept. 26 – CoSine Communications (COSN), 174%
  • Sept. 27 – AvantGo (AVGO), 67%
  • Sept. 28 – University of Phoenix Online (UOPX), 27%
  • Sept. 29 – Elastic Networks (ELAS), 7%
  • Sept. 29 – Docent (DCNT), 66%

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