Typically, August is a slow period in the IPO market, as investment bankers
go on vacation. But the IPO market has been surging lately – even with
a falling Nasdaq. In fact, August has 80 deals planned. But if Nasdaq
continues to have problems, the IPO market will likely slow considerably.
However, there are strong IPOs lined-up for next week.
There is McData. The
company develops switches and software solutions for the fast-paced SAN
(storage area network) market. The company has been effective at creating
product sales, such as by signing deals with industry leaders like EMC and
IBM. Hey, then again, McData is majority-owned by EMC.
In the first six months of 1999, the company had $34 million in revenues.
In 2000, revenues were $103 million and profits were $10.8 million.
The lead underwriter is CS First Boston and the price range is $19-$21 (the
company plans to issue 12.5 million shares). The proposed ticker symbol is
MCDT.
Next, take a look at
Equinix. The
company is the developer of Internet Business Exchange centers (IBX
centers). It is in these facilities where companies can interconnect with a
variety of top-notch bandwidth providers and other high-end Internet service
providers. Currently, Equinix has centers in Washington, DC, New York, and
of course, Silicon Valley. The company plans five more facilities by May
2001.
The company is early-stage, with its first customer signed in 1999. Also,
besides an accumulated deficit of $66.6 million, the company has $214
million in debt.
The lead underwriter is Goldman Sachs and the price range is $10-$12 (the
company intends to issue 20 million shares). The proposed ticker symbol is
EQIX.
Another strong prospect is
Element K. The
company is an e-learning play that is focuses on the corporate and
government markets. Element K’s system not only makes use of message
boards, multimedia and simulations, there is also extensive reporting and
tracking (so Corporate American can make sure employees are learning, not
playing around on the Net).
In all, the company has more than 400 online courses, which cover about
2,600 hours of training. Customers include American Express, IBM, Intel
and even the State of Texas.
The lead underwriter was CS First Boston and the price range is $10-$12 (the
company plans to issue 5.5 million shares). The proposed ticker symbol is
LMNK.
