Caldera, FairMarket IPOs on tap next week

For investors in initial public offerings it doesn't get much better than this: IPOs are scheduled next week for Linux software maker Caldera Systems and online auction builder FairMarket.

Caldera Systems hopes to raise $45 million, based on the high end of its $7 to $9 a share range and the 5 million shares it expects to sell.

FairMarket, meanwhile, raised its pricing range 36 percent at $13 to $15 and hopes to raise up to $75 million, based on the high end of its range and the 5 million shares it will sell.

Investors may see even more price increases before the companies' shares make their public debut.

"Linux companies have been getting huge pops, then the stocks settle back," said Jeff Hirschkorn, senior analyst with IPO.com, adding that "no matter what price they set, these companies always seem to go higher (when they debut)."

VA Linux last year captured the IPO title by posting the largest first-day gain ever for an IPO, a whopping 698 percent. But the shares have since slipped 50 percent.

Shares of Linux companies such as Red Hat and Cobalt Networks have either maintained their lofty early prices or continued to climb. Analysts have attributed the run-ups in shares to the short supply of Linux companies that have gone public.

Caldera is expected to price Thursday and begin trading Friday under the ticker "CALD." Robertson Stephens is the lead underwriter.

Last year, Caldera generated revenues of $3.1 million for the fiscal year ended October, compared with $1.1 million the previous year. Net losses reached $9.4 million for the period, compared with a loss of $8 million a year earlier.

FairMarket posted a $16.5 million loss on revenues of $2.1 million for the year ended Dec. 31.

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Analysts expect the company to ride the coattails of other online auction infrastructure companies that launched successful IPOs. "This company is similar to FreeMarkets, which did really well with its IPO," Hirschkorn said. "And FairMarket also has three high-profile customers that own stakes."

Those customers are Microsoft, Excite@Home and Ticketmaster Online-City Search. After the IPO, Microsoft will hold an 18 percent stake, Excite@Home 13 percent, and Ticketmaster 7 percent.

FairMarket is expected to price Monday and begin trading Tuesday under the ticker "FAIM." Deutsche Banc Alex Brown is the lead underwriter.

Caldera and FairMarket will be among the expected 19 deals to debut next week, which are anticipated to raise a staggering $7.2 billion.

Other IPOs that could yield strong performances next week include semiconductor companies Infineon Technologies, which provides chips to wireless companies, and PSI Technologies, an independent semiconductor testing company.

Other notables include Digitas, an Internet consulting firm; Loudeye Technologies, a software provider for encoding digital media; and RADVision, which allows companies to send voice and data over networks.