Will IPO investors shake off market jitters again?
Earnings warnings are creating turmoil on Wall Street this week, but that's not stopping more than a dozen companies from lining up to launch initial public offerings.
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 IPO forecast |
Fourteen IPOs are scheduled for next week, including a handful of tech companies, that could raise up to $2.4 billion, according to CommScan. If this week is any indication, at least a couple could post stellar returns.
Despite a volatile week in the broader market because of a procession of earnings warnings from companies such as Apple Computer and Priceline.com, investors still poured money in select technology IPOs. CoSine Communications soared 174 percent in its Tuesday debut, while AvantGo gained 66 percent the next day.
Some analysts expect this resilience in the IPO market to continue.
Leading next week's pack is Asia Global Crossing, a joint venture between Global Crossing, Microsoft and Softbank. The Hamilton, Bermuda-based company is building a fiber-optic network across Asia and will sell Internet, data, voice and Web-hosting services to business customers.
Asia Global Crossing's IPO is the largest on the calendar, with the company looking to sell 62.2 million shares at a range of $14 to $16 per share. Combined with a concurrent debt offering, the company hopes to raise $1.3 billion to $1.4 billion, according to its filing with the Securities and Exchange Commission.
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The shares will trade on the Nasdaq under the ticker symbol "AGCX." Goldman Sachs, Salomon Smith Barney and Merrill Lynch are handling the sale.
While analysts do not expect a huge first-day gain due to the large number of shares being offered, many describe Asia Global Crossing as an attractive long-term investment. In its prospectus, the company highlights the strong growth expected in Asia.
"Although Japan has experienced prolonged recessionary conditions, it remains the world's second-largest economy, with a (gross domestic product) of $4.3 trillion, and is a key financial, commercial and technological center," the filing says.
Global Crossing owns 56.6 percent of the joint venture, while Microsoft and Softbank each own 15 percent, according to the filing.
Asia Global Crossing's CEO John J. Legere, 41, formerly worked as Dell Computer's senior vice president. Legere will own 2.9 million shares after the IPO, worth some $46.4 million if the shares sell for $16.
Also on next week's calendar is Oplink Communications, which builds optical modules for the fiber-optics industry. Oplink's products increase the performance of optical networks. Customers include Sycamore Networks and JDS Uniphase.
San Jose, Calif.-based Oplink plans to raise $191.8 million through the sale
of 13.7 million shares at a range of $12 to $14. Robertson Stephens will
handle the sale. The shares will trade on the Nasdaq under the ticker symbol "OPLK."
Two of the technology IPOs on tap next week include:
Informax, which makes software used to analyze DNA sequences, plans to raise $80 million through the sale of 5 million shares at a range of $14 to $16. The company has applied to trade on the Nasdaq under the ticker symbol "INMX." Bear Stearns will handle the sale.
Advanced Switching Communications, which makes high-speed network connection products, plans to raise $94.5 million through the sale of 6.3 million shares at a range of $13 to $15. The company has applied to trade on the Nasdaq under the ticker symbol "ASCX." Morgan Stanley Dean Witter will handle the sale.