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Large IPOs to hit Street
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February 20, 2000: 9:09 a.m. ET
Focus on Nextel subsidiary as a handful of tech issues trot to market
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NEW YORK (CNNfn) - Although short on the actual number of deals, the market for initial public offerings should not lack for investor attention this week as a top digital wireless communications company leads a handful of large offerings expected to generate $1.3 billion.
The IPO market is coming off a difficult week during which several new issues wilted under pressure from the broader markets, where inflation-leery investors dragged shares down across the board. But with several large offerings scheduled for next week, analysts expect investors' appetite for new shares to return, particularly with most of the week's offerings being Internet related.
The most widely recognized name to debut this week will be Nextel Partners Inc., "NXTP," the U.S. affiliate of Nextel Communications Inc. (NXTL: Research, Estimates). The Kirkland, Wash.-based company, which provides wireless communications services to 40 million customers in 46 markets, expects to raise about $400 million by offering 23.5 million shares at $16 to $18 a share.
"What is going to help this deal is the market for PCS (personal communications system) shares is doing very well right now," said Jeffrey Hirschkorn, senior market analyst with IPO.com.
Intersil Holding Co. plans offering
The week's other large offering is expected to come from Intersil Holding Co., "ISIL," a designer and manufacturer of digital and analog integrated circuits that expects to sell 20 million shares at a range of $18-$20 per share, raising $380 million.
The Palm Bay, Fla. company is one of the nation's few to boast both semi-conductor and wireless communications product lines, although it faces competition from more specialized competitors in each of its product sets. Still, with a client base that includes 3Com Corp. (COMS: Research, Estimates), Compaq Computer (CPQ: Research, Estimates) and German industrial giant Siemens, analysts expect the company to get a serious look from investors.
One of the weeks' more intriguing debuts will be Avenue A Inc., a Seattle-based provider of Internet advertising services that butts heads with the likes of DoubleClick Inc. (DCLK: Research, Estimates) and AppNet Inc. (APNT: Research, Estimates) online.
Avenue A., "AVEA," plans to float 5.25 million shares for $8 to $10 per share, raising $47.25 million. The company's chief technical officer, Scott Lipsky, is a former vice president for business expansion at Amazon.com Inc. (AMZN: Research, Estimates).
Plenty of room for "ROOM"
One issue analysts believe could be met with some skepticism is Hotel Reservations Network Inc., "ROOM," an online provider of hotel reservation services.
The company offers reservation services to more than 1,200 hotels in 40 countries and a strong track record of revenue growth. But the company also competes in a crowded market also occupied by the likes of Microsoft Corp.'s (MSFT: Research, Estimates) Expedia service and Priceline.com (PCLN: Research, Estimates).
Hotel Reservations expects to sell 5.4 million shares at $11 to $13 per share, raising $64.8 million.
Other offerings for the week include Carrier One International, a Luxembourg-based provider of telecommunications-related services using the voice and Internet networks. The company hopes to raise $300 million by offering 18.75 million shares at $15 to $17 per share. Carrier One will trade under the ticker "CONE."
Also on tap is Niku Corp., "NIKU," an Internet management solutions company and Digitalthink Inc., "DTHK," a provider of online learning solutions. Niku plans to sell 8 million shares at $10 to $12 per share, raising $88 million, while Digitalthink will offer 4.4 million shares at $10 to $12, raising $48.4 million. 
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