The list of tech companies planning stock market debuts next week is surprisingly light, but analysts think a couple of issues -- like newcomer Cobalt Networks -- will still be drawing plenty of investor attention.
Cobalt specializes in server appliances, a new breed of so-called plug-and-play devices that perform tasks like Web site hosting, email, and file storage. The company is targeting its products for small and medium-sized businesses, which Cobalt says may not have the need or technical expertise to handle standard server applications.
Analysts see a possibility for the Mountain View, California company to cash in on investor enthusiasm for the open source movement, and in particular those that use the Linux operating system.
"It's probably going to ride the wave of RedHat," said IPO analyst Tom Taulli, referring to the Linux software distributor that cashed in with a big offering in August.
Cobalt, founded in 1996, says it began using Linux in its server applications as a way to speed up the time it took to get new products to market, since open source software is developed at a faster pace because more people are involved in working on it.
In the first nine months of the year, Cobalt had revenues of about US$13.8 million and reported a net loss of $13.7 million. The company is hoping to raise about $75 million through an offering of 5 million shares.
Another closely watched company on next week's calendar is Tickets.com, which plans to sell tickets to events at more than 4,000 venues in the United States through its Internet site. Although the company faces competition from Ticketmaster -- the established heavyweight in the field -- industry watchers say there should be room for a few players.
"It should show a very decent premium," said Vincent Slavin, an institutional trader at Cantor Fitzgerald who tracks IPOs.
Taulli cited Wireless Facilities, which specializes in planning, constructing, and managing wireless communications networks, as another promising issue. Given the sharp pace of growth in demand for wireless phones and data devices, companies involved in building underlying networks seem to be in a secure position.
"They might actually be a company that you could buy and hold on to," Taulli said.
Perhaps the largest issue planned for next week is Thomson Multimedia, a consumer electronics maker seeking to raise more than $400 million with its 21.5-million share offering. Other sizeable offerings include online marketing service inBeFree and Pac-West Telecom, which provides data switching for Internet service providers.
