IPO’s This Week: A Wireless World

Despite the fact the NASDAQ has taken many hits in the past few weeks,
it looks as if the IPO market will have some nice winners this week. There
are 18 IPOs planned for this week. There is also a $525 million follow-on offering
from Red Hat Inc. (RHAT)

Obviously, markets are eagerly awaiting the Palm Computing IPO. The company is a
division of 3Com (COMS) and, predictably, this stock has been red-hot.

It
surged 4-3/16 to 50-3/4 on Monday, when the company announced the terms
of
the Palm IPO. In all, 26.5 million shares will be sold between $14-$16.

The lead underwriter is Goldman Sachs and the date of the IPO is pegged
for Feb. 28. The company had $564 million in revenues in 1999, compared
to $1 million in 1995.

Speaking of wireless, there are several of these companies planning to
go public this week:

One is Dobson Communications. The company is a leader in cell phone
services for rural and suburban areas. The company has 401,680
subscribers. As of June 1999, the company had $146.3 million in
revenues
and earnings of $64.6 million. The company has been on an acquisition
binge, purchasing 12 companies since 1996. In fact, much of the
proceeds
from the IPO will be used to purchase American Cellular.

The lead underwriter is Lehman Brothers and the proposed ticker symbol
is
DCEL. The price range is $20-$22.

Next is Telaxis Communications. The company is a developer of
broadband wireless equipment for network service providers who want to
deliver voice, video and data services to businesses and residences.
The transmission of data is conducted through cell hubs. The company has
distribution agreements with Newbridge Networks and Motorola.

The lead underwriter is CS First Boston and the proposed ticker symbol
is TLXS. The price range is $14-$16.

Another hot one is Avanex. The company develops sophisticated
bandwidth-enhancing technology for fiber networks. Last year,
fiber-related stocks were trailblazers, such as JDS Uniphase (JDSU) and E-Tek Dynamics (ETEK). In the latest quarter, Avanex sported $4.4 million in revenues, compared to zero last year.

The lead underwriter is Morgan Stanley and the proposed ticker symbol is AVNX. The price range is $13-$15.

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