IPO Tracker: More and More Infrastructure Plays

The theme for next week’s IPO market will be infrastructure. And the
infrastructure company that should have the most buzz is Corio.

The company is
an ASP (application server provider). That is, it helps to manage complex
information technology needs for corporations. For Corio’s services,
companies will typically pay a fixed fee. The pricing model is known as
“rented software.” Corio rents top software packages such as from
PeopleSoft, SAP, and Siebel Systems.

The market for ASP services looks particularly bright. The market was $900
million in 1998 and is expected to soar to $23 billion by 2003 (according to
the Gartner Group).

The lead underwriter is Goldman Sachs and the proposed ticker symbol is
CRIO. The price range is $11-$13.

Airspan
Networks
should be another strong IPO. The company develops fixed
wireless communications access systems. Thus, customers can deliver high
speed data and voice services to wireless customers. What’s more, the
technology is cost effective and can be deployed quickly.

The company started shipping its product in 1996 and the systems have been
installed by over 35 communications service providers in 25 countries.

The lead underwriter is CS First Boston and the proposed ticker symbol is
AIRN. The price range is $9-$11.

Then there is the infrastructure play Talarian . The
company has software that enables businesses to exchange information in
real-time with suppliers, customers and partners. There are over 300
customers, such as MCI, Chicago Board Options Exchange, Cisco and Southwest
Airlines. Interestingly enough, the technology is also implemented in
high-end tech products, like software from Computer Associates and BMC
Software.

Talarian was founded in 1988 and originally focused on the aerospace
industry. Since then, the company has done a good job of shifting its
product line to broad-based corporate uses.

The lead underwriter is Lehman Brothers and the proposed ticker symbol is
TALR. The price range is $12-$14.

Finally, Support.com plans to
go public. Unfortunately, so far the demand appears to be tepid. The
company develops software to streamline a company’s customer support
organizations. But it is a very competitive marketplace.

That said, the company does have a strong customer base. Companies include:
Bear Stearns, Compaq Professional Services, Computer Sciences, [email protected], and JCPenney.

And the market is big. The e-support services market is estimated to grow
from $3 billion in 1999 to $14 billion by 2003.

The lead underwriter is CS First Boston and the proposed ticker symbol is
STMX. The price range is $8-$10.

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