More than 90 internet companies are planning to raise money through initial public offerings of stock over the following six weeks in a litmus test of Wall Street’s appetite for high tech stocks. The rush to market follows about three weeks of relative IPO inactivity during which many firms postponed offerings amid market volatility.
With investors starved of products over recent weeks, some analysts tip the first companies to market to reap substantial gains before oversupply, which has blighted high tech stocks over the summer, reasserts itself. But the gains are unlikely to hit the heights seen earlier this year with investors less than starstruck over new high tech stocks according to analysts.
Shaping up to hit the market are hot properties like NetZero, a provider of free dial-up access to the web and E.Piphany, which helps business sell products and services online. Enthusiastic receptions are also predicted for Alteon Web Systems, a manufacturer of products to expedite data networks and Calico Commerce, which makes e-commerce software. In addition NetZero, a free internet service provider, Ashford.com, an online retailer of luxury goods, and Keynote Systems which tracks internet traffic, are tipped to do well.
The big issues will come around the turn of the month, at the earliest. Ones to watch include Charter Communications, the cable giant built up by Microsoft co-founder Paul Allen and Williams Communications, which lays fiber optic networks.
