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IPO Outlook: 
Clearwire Loses Ground After a Good Start
Author: Yordanka Bahchevanska
123jump.com
Last Update: 6:19 PM EDT March 12 2007


Four companies launched IPOs last week, raising nearly $1 billion. China-based company Xinhua Finance was down as much as 8.6% on its first day of trading Friday, while network security software maker Sourcefire gained as much as 9.7% also on Friday. Wireless broadband service provider Clearwire started higher 11% on Thursday but then lost ground and ended the week below its IPO price. Forty three IPOs have been priced so far in 200756% of them are trading above their offering price.

 
Forty three initial public offerings have been priced so far this year as of Mar 9, 2007:

- 24 IPOs are currently trading above initial offering price;
- 18 are trading below the offering price;
- and 1 is trading at its offer price.

Four IPOs were priced during the week of March 5th, 2007. There are four deals on deck for the next week, hoping to raise nearly $700 million.

IPO PERFORMANCE

ADVANCERS:

Sourcefire Inc. (FIRE: chart) priced its initial public offering of 5.77 million shares at $15 per share on Thursday, above the forecast range of $12 to $14. The deal was worth $71.8 million.

The company offered 5.32 million shares, while selling stockholders offered 450,000.

Morgan Stanley and Lehman Brothers were the lead underwriters of the deal.

The underwriters have an option to buy 865,500 additional shares to cover over-allotments.

Based in Columbia, Maryland, Sourcefire develops and sells software that monitors, detects and blocks unauthorized access to computers and networks.

The shares ended the week at $15.49, up 3% from the offering price.

DECLINERS:

China-based Xinhua Finance Media Ltd. (XFML: chart) on Thursday priced 23.1 million American depositary shares at $13 per share, at the midpoint of the $12 to $14 forecast range. The deal was worth almost $300 million. Each ADS represents two common shares.

The company offered 17.3 million depositary shares while selling stockholders sold 5.8 million.

J.P. Morgan and UBS Investment Bank were the lead underwriters of the deal.

The underwriters have an option to buy 3.5 million additional ADS to cover over-allotments.

The company''s parent Xinhua Finance (XHF: chart) is a Tokyo-listed financial information and media services company.

Xinhua produces business and financial news programs distributed across television, print media and radio in Beijing and Shanghai.

The stock closed at $11.35 a share on Friday, down 13% from the IPO price.

Wireless broadband service provider Clearwire Corp. (CLWR: chart) on Wednesday priced its shares at the top of a forecast range, raising $600 million. The company offered 24 million shares at $25 each, compared to the forecast range of $23 to $25 a share.

Merrill Lynch, Morgan Stanley and J.P. Morgan led a group of 10 underwriters.
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