graphic
News > Deals
Two IPOs open sluggish
February 9, 2001: 1:10 p.m. ET

Oil States gains 15 cents, Third Wave stays afloat in wake of KPMG IPO
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - Two IPOs failed to follow the strong debut of KPMG Consulting Inc., scoring moderate gains in the new issues market Friday.

Oil States International Inc., the second energy-related deal this week, rose 15 cents to $9.15 on the New York Stock Exchange. Biotech firm Third Wave Technology gained 6 cents to $11.06 on the Nasdaq.

On Thursday, the new issue from KPMG Consulting Inc. surprised analysts by climbing 30 percent.

Both Oil States and Third Wave are good IPOs but lack the buzz generated by KPMG (KCIN: Research, Estimates), analysts said. Companies now need more than solid financials to surge in the IPO market, and those looking for gains of 20 percent or more should have good name recognition like KPMG and perform in a growing industry.

"The market is so cautious right now and so shaky that if you don't have all those perfect scenarios, then you will trade at your IPO price," said Corey Ostman, co-CEO of Alert-IPO.com.

Companies that fail to fill those conditions can expect to trade up about 5 percent but won't see the substantial gains posted by KPMG, Ostman said.

Drilling in

Houston-based Oil States International raised $90 million, selling 10 million shares at $9 each, below its expected range, via lead underwriters Merrill Lynch and Credit Suisse First Boston. Oil States originally planned to offer 14.6 million shares at $11 to $13 each.

graphicOil States (OIS: Research, Estimates) provides specialty products and services to oil and gas production companies such as Shell Oil Co. Inc. and Global Marine Inc. The company's business is located in fast-growing oil and gas regions including the Gulf of Mexico, West Africa, Canada and South America.

Oil States is profitable, with pro forma operating income of $29.9 million on revenue of $437.4 million for the nine months ended Sept. 30.

A genomics deal

The IPO from Third Wave Technologies Inc., a biotech tools play, came in below expectations. Third Wave raised $82.5 million after selling 7.5 million shares at $11 each via lead underwriter Lehman Brothers. The company had planned to offer 8.5 million shares at $11 to $13 each.

Madison, Wis.-based Third Wave (TWTI: Research, Estimates) provides test kits and products to analyze genetic variations. The company's patented genetic platforms are easy to use and save time because users do not need to make multiple copies of a genetic sample, the company said in a filing with the Securities and Exchange Commission.

As with most biotechs, Third Wave is not profitable and had a $25.6 million loss on $11.4 million revenue in the year ended Dec. 31. graphic





graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.