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Several IPOs Put on Hold Amid Volatility

October 23, 2000|From Staff and Wire Reports

Many companies that had hoped to float new stock offerings are pulling their deals from the calendar, amid Wall Street's wild volatility.

Just a handful of companies is slated to price offerings and begin trading this week. The following weeks appear to be just as barren as underwriters refuse to pin a firm date next to many IPOs, fearful of continued market swings.

The rally that began in the beaten-down Nasdaq Stock Market last Wednesday morning continued through Friday, leaving the Nasdaq composite index at 3,483.14, up 5% for the week--the first weekly advance since late-August.

But many investors remain skittish, notes Corey Ostman, chief technology officer at "Naturally when they are skittish, IPOs are way too risky for them."

Twenty-eight companies have priced their IPOs in October so far, versus about 66 in October 1999, according to And 27 IPOs were completed last month, compared with 48 in September 1999.

Still, some companies that have braved the market have shined. Among California companies, Calabasas-based Ixia Inc. went public at $13 a share last Tuesday and rocketed to close at $20 on its first trading day. By Friday, the stock (ticker symbol: XXIA) was at $30.75.

The company, which makes systems that let customers measure the performance of their data communications equipment and networks, is already profitable--a big draw for nervous IPO investors.

Ixia had a net income of $2.3 million on net revenue of $28.3 million in the six months ended June 30.

Endwave Corp. also braved last week's market. The Sunnyvale, Calif.-based maker of equipment for wireless telecom systems sold shares at $14 last Monday. The stock (ENWV) ended the week at $16.88.

Among planned deals, Transmeta Corp. will be closely watched. The company, which makes low-power microprocessors for portable computers, is in heated competition with giant Intel Corp. in that market.


Reuters was used in compiling this report.

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