A rare event occurred this week. Yes, we saw an IPO moonshot. It was
Transmeta , which saw
its stock price surge 109.5 percent on its first day of trading.
However, with Nasdaq continuing its problems, it will be tough for the IPO
market to repeat the performance of Transmeta. But, of course, there are
some that will try.
One IPO to keep an eye on for next week is
iMagicTV. The
company is a software developer, which basically helps phone companies (and
other big service providers) deliver multi-channel digital TV and other
interactive services – over broadband networks. No doubt, with the recent
weakness in telecom, the industry is trying to find new ways to make money.
iMagicTV does provide a possibility.
Hey, the company does have a business model, too. It has three elements:
licensing fees from the software; royalties on a per subscriber basis; and
professional services and maintenance.
But like most broadband plays, the company is very early stage. For the
first six months of 2000, revenues totaled $3.5 million. The company had
losses of $4.9 million.
The lead underwriter is Merrill Lynch and the price range is $11-$13 (the
company intends to issue 4.8 million shares). The proposed ticker symbol is
IMTV.
Next, there is an interesting wireless deal. And so far, there appears to
be continued interest in this sector. The company is
Novatel Wireless.
The company is a leader in developing wireless data modems and software.
Yes, you can access enterprise networks and the Net “anytime, anywhere.” In
fact, the company delivered the first wireless connectivity products for the
Palm device.
There are also other innovations. Examples: Merlin Type II PC Card, Sage
Wireless Modem, NRM-6812 and Lancer 3W Wireless Modem. Customers include
Verizon, At&T, OmniSky and GoAmerica.
The lead underwriter is CS First Boston and the price range is $10-$12 (the
company intends to issue 7 million shares). The proposed ticker symbol is
NVTL.
