Interwave, L90 jump in IPOs

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InterWAVE (Nasdaq: IWAV), a provider of equipment for wireless GSM communications, moved up 24 to 37 Friday after it priced 8.5 million shares for its initial public offering.

The original offering was for 7.5 million shares at $8 to $10 each.

The Hamilton, Bermuda-based company sells infrastructure equipment and software to support wireless networks within a single building.

"This is on our hot list," said David Menlow of IPOfinancial.com, who named it as one of the three most promising IPOs this week, including Extensity (Nasdaq: EXTN) and Turnstone (Nasdaq: TSTN). "Nortel is a 24 percent owner; that's an incredible start," he said.

Salomon Smith Barney is the lead underwriter and Banc of America Securities LLC and SG Cowen are co-managers.

Net revenue for the three months ended September 30 was $5.4 million, compared to $4.5 million in 1998's comparable period. Net loss was $11.5 million, compared to $5 million in the 1998 quarter.

The company said it currently competes against communications equipment providers such as Ericsson (Nasdaq: ERICY), Lucent (NYSE: LU), Motorola (NYSE: MOT), Nokia (NYSE: NOK) and Siemens in the GSM, CDMA, TDMA, DECT and wireless local loop markets. In some market applications, it also competes with customers Alcatel (NYSE: ALA) and Nortel Networks (NYSE: NT).

Among other IPOs on deck today:

  • Online advertising and marketing company L90 (Nasdaq: LNTY) gained 8 3/4 to 23 3/4 after pricing 6 million share at $15 each, above their range of $10 to $12 a share.

    The company, which competes with the likes of Flycast (Nasdaq: FCST) and DoubleClick (Nasdaq: DCLK)

    "This has been an interesting sector since 1998," said Kenan Pollock, money editor of IPO Central at Hoovers Online.

    "The 2 point bump in its pricing was a definite plus," Menlow said. He said the deal looks promising, but threre are a lot of competitors in the space, and L90 will have to see a sharp upramp in revenue to support this price."

    SG Cowen , Wit Capital and Bank of America are serving as underwriters for the deal.

    For the nine months ended September 30, L90 lost $5.8 million on revenue of $3.9 million, compared to a loss of $42 000 on revenue of $1.5 million in 1998

  • Caminus Corp. (Nasdaq: CAMZ) moved up 3 5/16 to 19 5/16 after pricing 4.3 million shares at $16, above their expected range of $13-$15 each.

    "We're lukewarm on this stock," Menlow said. The company provides software and consulting services to the energy industry , "not the kind of thing that gets investors doing handsprings," he said.

    For the nine months ended September 30 Caminus had net loss of $6.2 million on revenue of $18.5 million.

    The company said a significant chunk of revenue comes from licensing of its Zai*Net suite of software.

    Lead underwriter for the offering is Deutsche Banc Alex Brown; Bear Stearns and CIBC World Markets are co-managers.