January IPO Slate Looks Heavier Than Usual

IPOs are taking a short vacation, but they'll be back in full swing after New Year's.

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It'll be a light load until the middle of January, but December proved busy for a traditionally slow time for IPOs. This month, 41 deals have been priced, up from 22 last year, according to Thomson Financial Securities Data. And even though the IPO market doesn't generally heat up again until March, there are already 100 deals slated to go public in the first few months of 2000, compared with 68 deals filed at the same time a year ago.

With $70 billion raised in the IPO market for 1999 and deals up an average of 183% as of Thursday, according to Thomson Financial Securities Data, investors will be looking forward to continued good cheer in 2000.

The Bad News First

Alas, those growth investors hunting for the next hot Net infrastructure stock will have to wait. While there are a number of dot-com offerings lined up, the infrastructure plays, which have been among the leaders in the Nasdaq's incredible 80% rally this year, have yet to make it onto the calendar.

There aren't any specific infrastructure companies on investors' radar screens, says IPO analyst Tom Taulli of internet.com. But not to worry, the analyst continues: "There's going to be a lot of segmentation" in the telecom-infrastructure sector, so more of these IPOs will hit the slate eventually.

Meanwhile, those awaiting the next Foundry Networks(FDRY), up some 1,200% since its September IPO, or Juniper Networks(JNPR), which went public in June at 35 and closed Thursday well above 300, will need to keep an eye out.

Casting a Wide Net

Don't despair, though: Some strong offerings are already on the calendar. Online retailer Buy.com, a $168 million Merrill Lynch deal, will hit the market in January. Credit Suisse First Boston, one of the top investment banks for IPOs in 1999, according to Thomson Financial Securities Data, will underwrite offerings by 724 Solutions, a Canadian company that enables banks to offer online banking and financial services on mobile phones and personal digital assistants, and SkillSoft, a Nashua, N.H.-based seller of training software.

Morgan Stanley Dean Witter will bring public two Internet companies that have been generating a lot of buzz: online grocer HomeGrocer.com and CMGI(CMGI)-controlled portal AltaVista. TheStreet.com covered these two filings in a story on Dec. 18.

Early next year will also see a series of college and teen-related Web sites, new entrants to a sector that has yet to impress investors. New York-based teen portal Bolt, which just filed to go public, will be underwritten by Morgan Stanley, and will compete with teen sites Alloy Online(ALOY) and iTurf(TURF), both of which went public in 1999 and haven't fared well since then. Alloy Online has barely budged from its May 13 offer price of 15, and iTurf has been underwater since its April offering at 22, trading recently in the midteens.

Online college-textbook-retailer VarsityBooks.com, a Robertson Stephens deal, and Internet college resource Embark.com, a Credit Suisse First Boston deal, are also in line to go public in late January or early February. Also highly anticipated is Snowball.com, a portal that focuses on the 12-29 age group and is one of the largest private companies ranked on Media Metrix's list of Web properties. It filed Thursday for an $86.3 million deal underwritten by Goldman Sachs.

Not Just for Breakfast Anymore

Next year won't just be about dot-coms, though. John Hancock, a $2 billion deal underwritten by Morgan Stanley, is on the docket for the first quarter, as is MetLife. Doughnut king Krispy Kreme, based in Winston-Salem, N.C., is slated to hit the public markets at the end of first quarter. And we can't forget Palm, the subsidiary of 3Com(COMS) that hopes to raise $100 million when it goes public with the backing of Goldman Sachs, most likely in February.

Until then, enjoy the IPO vacation. It's going to be a busy year.

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