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CSFB-banker on most IPOs
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December 16, 2000: 7:00 a.m. ET
Goldman earns most in IPO proceeds, CSFB serves as lead on most deals
Staff Writer Luisa Beltran
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NEW YORK (CNNfn) - With only scraps left in this week's IPO market, an inspection of new issues reveals that Credit Suisse First Boston has again beaten out rivals Goldman Sachs & Co. and Morgan Stanley Dean Witter, snagging the most IPOs this year.
Only one IPO, Cellomics Inc., is on tap this week. Cellomics Inc. was originally slated to begin trading last week but chose to delay. The company now plans to offer 6 million shares at $8 to $10 each, down from $11 to $13, which was also sliced from the originally filed $16 to $18 price range. Prudential Vector Healthcare is the lead underwriter on the deal.
Cellomics will trade under proposed Nasdaq symbol "CLMX."
 Credit Suisse First Boston will be ringing in a joyful New Year now that its banking unit has emerged as the year's top underwriter. Credit Suisse First Boston, which bought rival Donaldson Lufkin & Jenrette in August for $11.5 billion, served as lead underwriter on 83 deals, according to data from CommScan, a New York-based investment banking research firm.
CSFB's purchase of DLJ enabled the Swiss banking firm to beat out its rivals, serving as lead underwriter on more IPOs than any other investment bank. But CSFB owes much to its acquisition of DLJ; nearly one-third, or 24, of CSFB's 83 deals come from DLJ, CommScan said.
CSFB managed to maintain its top position, beating out Goldman Sachs & Co., which had 63 deals to its credit this year. Morgan Stanley Dean Witter came in third with 52 deals. Without the DLJ-led deals, Credit Suisse would have ranked second with 59, still ahead of Morgan but behind Goldman.
In 1999, Credit Suisse was also the top firm, serving as lead underwriter on 98 deals, CommScan said.
Goldman top in proceeds
Despite CSFB's leadership in the number of IPOs, Goldman Sachs emerged as the top dog in terms of how much money the firm raised in the IPO market. Goldman's 63 deals raised $24.5 billion globally, according to CommScan. Morgan Stanley came in second with $23.9 billion.
Merrill Lynch, which raised the most in 1999 with $30 billion, fell to third place with $17.2 billion, while Credit Suisse ranked fourth in proceeds raised, with $13.7 billion.
While all may be merry with CSFB, their customers might be turning into scrooges. Of CSFB's total deals, nearly two-thirds, or 53 companies, are now trading below their offer price, said Richard Peterson, market strategist at Thomson Financial Securities Data.
"From a business standpoint it was wonderful year for banks but for investors it was a horrific year," Peterson said.
Underwriters are traditionally paid about 7 percent of the proceeds raised on a deal, with lead underwriters getting the lion share, Peterson said. So, CSFB will reap a significant windfall from the $13.7 billion raised on its 83 deals.
"Wall Street gets paid whether the deal makes money in the aftermarket or not," said IPO editor John Fitzgibbon, of WorldFinanceNet.com. "Wall Street went to the bank this year and their customers went to the cleaners."
Sector leaders
Goldman Sachs emerged as the top telecom underwriter, serving as lead banker on 21 deals that raised nearly $11 billion. Credit Suisse came in second in the telecom sector, with 20 IPOs netting $4.8 billion.
Goldman also ranked first in technology proceeds, with 26 deals raising $6.7 billion. However, Credit Suisse ranks first in volume, with 43 IPOs raising $5.3 billion.
In healthcare, UBS Warburg ranked first for the number of offerings it led, with 11 IPOs raising $841.3 million. Merrill placed first in terms of profits, with 8 deals raising $2.6 billion.
Goldman Sachs placed first in biotech proceeds, with 3 deals raising $937 million. Lehman Brothers, with 8 deals, came in tops for the number of deals, raising $648 million.
Best first day pop
Of the IPOs with the best first day gains, Morgan Stanley emerges as the frontrunner serving as lead underwriter on the top three deals. Morgan led the IPO of webMethods Inc. (WEBM: Research, Estimates), an infrastructure software company, which on Feb. 10 gained 507.5 percent in its debut, the best first day pop in 2000.
Morgan also led the offerings of Crayfish Co. Ltd. (CRFH: Research, Estimates), which rose 414 percent on March 6, and the IPO of Avanex Corp. (AVNX: Research, Estimates), which climbed 378 percent on Feb. 3.
Merrill Lynch receives the dubious distinction of having served as lead underwriter on the offering from Pets.com, one of the worst performing IPOs in 2000. On Feb. 11, Pets.com (IPET: Research, Estimates) sold 7.5 million shares at $11 each. The deal traded flat in its first day and then died in the aftermarket, trading Friday at 9 cents.
The online pet supply retailer officially shut its doors on Nov. 7.
"The bottom line is that while the IPO marketplace has success stories, like a Microsoft or a Cisco, there are other companies down by the wayside," Peterson said. "In the 21st century it will be the dot.coms." 
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