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IPO Outlook: 
Technical Companies Soar in Debut
Author: Yordanka Bahchevanska
123jump.com
Last Update: 1:07 PM EST November 13 2005


The IPO market has yet to reach its normal speed this fall after a busy summer. The market is still suffering due to damages done by the hurricanes, soaring fuel prices and the scandal surrounding Refco. Five companies postponed their IPO plans - four of them are scheduled to be priced the coming week, while Passave postponed its offering for indefinite time.

 
185 initial public offerings have been priced so far this year and as of this Friday, Nov 11, 2005:

- 99 IPOs are currently trading above initial offering price;
- 80 are trading below the offering price;
- and 6 are trading at their offer price.

A total of 7 IPOs were priced and 5 companies filed to go public during the week of November 7th, 2005. There are 11 deals scheduled to be priced during the coming week, hoping to raise about $ 1 billion.

IPO PERFORMANCE

ADVANCERS

The Israeli computer memory chips designer Saifun Semiconductors Ltd. (SFUN: chart) priced 5 million ordinary shares at $23.50 per share on Tuesday, above the high end of the $20.50-$22.50 filing range. All of the shares were offered by the company and it expects net proceeds of $105 million from the IPO.

In addition, the underwriters have a 30-day option sell 750,000 additional shares if demand is sufficient.

Saifun's shares began trading on the Nasdaq on Wednesday and closed the first day 50.2% above the offering price.

Lehman Brothers and Deutsche Bank were the lead managers on the deal, while CIBC World Markets, William Blair and Raymond James were acting as co-managers.

Saifun’s shares ended the week at $32.89, up 40% from the offering price.

The robotics company iRobot Corp. (IRBT: chart) priced 4.3 million shares at $24 per share on Wednesday, rising $103.2 million. The company priced the offering above the high end of the $21-$23 filing range.

The company offered 3.3 million shares, while the selling shareholders offered the remaining 1.04 million units.

Morgan Stanley and JPMorgan were the lead managers, while First Albany Capital, Needham & Company and Adams Harkness acted as co-managers on the deal.

In addition, the selling shareholders have granted the underwriters an option to purchase additional 645,000 shares at the IPO price.

The stock have been approved to trade on the Nasdaq National Market and closed at $26.70 the first day of trading, up 11.3% from the offering price.

The Burlington, Massachusetts-based company makes products ranging from the Roomba automatic home vacuum cleaner to military robots used by the U.S. Army.

iRobot’s stock ended the week at $36.51, up 52.1% from the offering price.

The technical data and services provider IHS Inc. (IHS: chart) priced 14.5 million shares at $16 on Thursday, near the high end of its $14.50-$16.50 filing range. The deal is valued at $232.3 million.

The selling shareholders offered all the 14.5 million shares. The company had initially planned to offer 5.3 million shares in the IPO, but in October amended its plans.

Goldman Sachs and Citigroup were the lead managers on the deal.
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