Update: Internet IPOs fall flat
A trio of Internet companies hit Wall Street Friday and none of the three made much of an impression. @Plan Inc., Fashionmall.com and TenFold Corp. all were big disappointments in their debut.
@Plan shares closed up 2 to 16 after pricing the 2.5 million-share offering at $14 a share last night. It did move as high as 18 1/2.
The Stamford, Conn. develops market research decision support and planning software for Internet advertisers, advertising agencies, and Web publishers, and has a system for online retailers. The systems, accessed through @Plan's Web site, combine databases of consumer lifestyle, product preference and demographic data with inquiry, search and planning software. @The Gallup Organization Inc collects Plan's data on consumers.
@Plan sees itself competing indirectly with online rating agencies, such as Media Metrix Inc. (Nasdaq: MMXI) as well as advertising agencies that collect data like DoubleClick Inc. (Nasdaq: DCLK).
Clients include: Buy.com, CBS MarketWatch, Modem Media.Poppe Tyson, and TicketMaster Online and US Web/CKS.
Hambrecht & Quist led the offering, and Bear Stearns and First Union Capital Markets comanaged.
The online retailing stock closed unchanged at 13 Friday, after pricing at $13 a share late Thursday. The company filed in March with a range between $9 a share and $11 a share, up from an earlier filing at $7 a share.
Fashionmall.com makes its money by pitching retailers' clothing on a single site and collecting hosting fees and advertising revenue. In 1998, the company earned $14,000, up from $3,000 in the previous year. This profitability will end as the company hires more staff and upgrades its software other technology, the company said in a filing. Revenue rose to $2 million last year.
Tenants include: Brooks Brothers, Fortunoff, Delia's, Sketchers, Steve Madden and Liz Claiborne.
Fashionmall lines itself next to other online retailing aggregators, such as Bluefly Inc. (Nasdaq: BFLY), retailers with Web sites, such as L.L. Bean and Web portals, such as Yahoo! Inc. (Nasdaq: YHOO). The company's online tenants may also compete with the Web mall.
Gruntal & Co. was the lead manager and First Security Van Kansper assisted.
The software company from Draper, Utah closed up 5 7/8 to 22 7/8 Friday after pricing its first public offering at $17 a share. The company will issue 4.7 million shares of common shares. Tenfold's range was between $13 a share and $15.
Tenfold's edge may be its business style: Products are guaranteed on time and have pre-set prices. The company makes large-scale applications for a fixed price for clients such as Ameritech Corp. Tenfold guarantees that will deliver its software between 4 months and 8 months.
The company competes with a myriad of larger consulting firms, such as Pricewaterhousecoopers, and software integrating service providers.
Goldman Sachs, BT Alex Brown, and USB Piper Jaffray managed the issue.