With tech stocks once again spiraling upward, Wall Street back at work, and Y2K a distant memory, one would think that companies planning new stock offerings would be rushing like mad to start trading while times are good.
But it just ain't so. At least not right away.
Next week's calendar of initial public offerings is unusually slim, with only one sizeable debut planned -- a US$63 million offering from Neoforma.com, an online medical supplies seller.
The action doesn't really start heating up until the following week, when a few jumbo-sized deals will lead the unofficial start of the IPO season.
"We're still just really getting back into the groove," said Steven Tuen, director of research at IPO Value Monitor. "It's been about a month where practically no deals have gone through. But looking forward it seems to be pretty interesting."
A number of closely watched companies are planning debuts during the week of 24 January, including insurance and investment firm John Hancock Financial Services, wireless banking specialist 724 Solutions, and discount retailer Buy.com. With the John Hancock offering set to raise nearly $1.8 billion, the week will be a big one in terms of cash raised.
IPO analysts say prospects look particularly good for 724, which develops technology for conducting banking transactions over mobile phones and other wireless devices. Because the company straddles two hot sectors -- wireless and Internet technology -- it should attract plenty of interest from investors, Tuen said.
"In terms of the concept, which a lot of people will buy into for an IPO, it's right with the times," he said.
Tuen was less certain about fast-growing, cut-rate retailer Buy.com, which is seeking to raise $150 million in an IPO slated for next week. Although the company will probably do well in early trading, investor discontent over continuing losses at rival Amazon.com could depress shares of rival retailers.
But IPO investors will have plenty of other choices.
Other sizable issues expected to start trading the same week include online advertising and marketing firm L90, radio broadcaster Regent Communications, and Sequenom, which develops technology for analyzing variations in DNA.
And that's merely the beginning. Judging by the number of companies that have filed preliminary IPO plans in recent weeks, the pace should keep up through February and March.
