IPO Tracker: Infrastructure and Software Still Rule

When investing in the IPO market, it often takes a loss of the senses.
Perhaps that’s what makes the IPO of
Blue Martini so
interesting. No, this is not an online wine distributor. Actually, it is
an infrastructure play. The company’s software helps to deal with customer
interactions using the Net. And the software is nimble enough for wireless.
Currently, there are 35 customers.

In the first quarter of 2000, the company had $10.7 million in revenues
(revenues for all of 1999 were $11.2 million). But losses were $11.4
million.

Most are expecting this to be one of the week’s biggest IPOs.

The lead underwriter is Goldman Sachs and the proposed ticker symbol is
BLUE. The company plans to issue 7.5 million shares between the price range
of $11-$13.

Another hot one should be Avici System.
No doubt, fiber optics has been very hot and Avici is in that game. The
company has a product called the Terabit Switch Router. Like most other
next-generation fiber optic companies, Avici has had little revenue history.
Interestingly enough, it wasn’t until the first quarter of 2000 that the
company registered any revenues — a paltry $504,000. But there are some big
deals pending, such as with Enron, AT&T and Williams Communications. But to
get these deals, the company must meet stringent requirements for field
tests. If the company fails, shareholders will definitely be displeased.

The lead underwriter is Morgan Stanley and the proposed ticker symbol is
AVCI. The company plans to issue 6 million shares at the price range of
$18-$20.

Another hot one should be
WebEx. The
company develops real-time software that allows for virtual meetings across
the globe. The system is highly scalable, allowing millions of concurrent
meetings in one-to-one, one-to-many or any-to-any interactions. WebEx
supports its technology with more than 120 servers located in six data
centers.

The lead underwriter is Goldman Sachs and the proposed ticker symbol is
WEBX. The company plans to issue 3.5 million shares at the price range of
$12-$14.

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