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IPO Outlook: 
Healthcare Companies Dominate Calendar
Author: Yordanka Bahchevanska
123jump.com
Last Update: 3:56 PM EDT October 09 2006


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Shares of BreitBurn Energy and à Greek-based shipper Danaos ended the week almost unchanged from their offering price. Both deals priced below the forecast range at filing. The IPO Market is expected to gain strength next week with eight deals on line.

 
146 initial public offerings have been priced so far this year as of Sept 29, 2006:

Three IPOs were priced during the week of October 2nd, 2006. There are eight deals on deck for the next week planning to raise nearly $2 billion.

IPO PERFORMANCE

Greek shipping company Danaos Corp. (DAC: chart) on Thursday raised more than $215 million with an IPO that priced at $21 per share, the midpoint of a $20 to $22 forecast range.

The 10.25 million share offering represents an almost 19% stake in the company.

Merrill Lynch and Citigroup were the lead managers for the offering. They have an option to buy 1.54 million additional shares to cover over-allotments.

The company operates 27 container ships with another 16 vessels expected to be delivered through 2009.

The shares ended the week at $20.85, down %0.7 from the offering price.

BreitBurn Energy Partners L.P. (BBEP: chart) priced its initial public offering of 6 million common units at $18.50 per unit, slightly below a $19 to $21 forecast range. The offering represents almost 27% interest in the company and was worth $111 million.

BreitBurn Energy has granted the underwriters a 30-day over-allotment option to buy up to 900,000 additional common units.

RBC Capital Markets and Citigroup were the lead managers with Credit Suisse serving as senior co-manager for the offering.

BreitBurn Energy Partners L.P. is an independent oil and gas limited partnership, recently formed by a subsidiary of Provident Energy Trust, focused on the acquisition, exploitation and development of oil and gas properties.

The shares ended the week at $18.50, unchanged from the offering price.

IPO CALENDAR – week of October 9th

Biopharmaceutical company ImaRX Therapeutics (IMRX: chart) plans to offer 5 million shares within a price range of $10-$12, in a bid to raise $69 million. CIBC World Markets, Jefferies and First Albany Capital will manage the deal.

The Israel-based therapeutic products developer Rosetta Genomics (ROSG: chart) plans to offer 3 million shares within a price range of $11-$13, in a bid to raise $45 million. CE Unterberg Towbin, Oppenheimer and Maxim Group will manage the deal.

Cancer treatment developer Light Sciences Oncology (LSON: chart) plans to offer 5.25 million shares within a price range of $14-$16 a share, in a bid to raise $96.6 million. Cowen & Company, Wachovia, Jefferies and Thomas Weisel will manage the deal.

Network session border control provider Acme Packet (APKT: chart) plans to offer 11.5 million shares within a price range of $6.50-$7.50 per share, in a bid to raise $99 million. Goldman Sachs, Credit Suisse, JP Morgan and ThinkEquity Partners will underwrite the deal.

Health insurance provider eHealth (EHTH: chart) plans to offer 5 million shares within a price range of $10-$12, hoping to raise $69 million. Morgan Stanley, Merrill Lynch, Thomas Weisel and JMP Securities will mange the deal.

Consultancy SAIC Inc. (SAI: chart) plans to offer 75 million shares within a price range of $13-$15, in a bid to raise $1.3 billion. Morgan Stanley and Bear Stearns will head the group of underwriters on the deal.
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