Capital opportunities from initial stock offerings seem to be fading.

For more than a year, capital-starved companies have feasted on Wall Street. In fact, the $39.4 billion raised through initial public stock offerings in 1992 was the most IPO capital ever raised in a single year, according to Wall Street sources.

And the IPO frenzy continued in the first quarter of 1993, with $11.6 billion in IPO capital being raised, another record amount. A full $5 billion of that capital was raised in the month of March alone.

Since then, however, the market has begun to cool. In April, the total nationwide value of IPOs dipped to $1.82 billion.

The window of opportunity is not closed, but it is not as wide open as it has been for more than a year.

As David Menlow, president of IPO Financial Network Corp., an IPO hotline based in Springfield, N.J., described it, the IPO market was insatiable in the latter part of 1992 and early 1993. But the sun may finally be setting on those opportunistic days.

"The market was so hungry for IPOs six months ago that you were assured of a winner," Menlow said. "Deals are still getting done, but the number of deals is down, and they are reduced in size and price."

In December 1992, there were 90 IPOs. As of April 1993, that pace had slowed down to about 10 IPOs per week. Most industry analysts agreed that the market is slowing down, but it remains robust for selective companies and industries.

According to Stephen Koffler, executive vice president and director of investment banking for Sutro & Co. in Los Angeles, "The IPO window is not going to shut for the balance of this year. It will, however, be wider open for some industries than for others."

Industries currently considered fashionable on the IPO market are a number of high-tech industries, including computer software and telecommunications. Koffler also noted that stocks of companies that own gambling resorts, such as Beverly Hills-based Hilton Hotels Corp., are receiving considerable attention.

Seth Feinstein, a researcher for Los Angeles-based securities firm Crowell, Weedon & Co., pointed to the case of Torrance-based Davidson & Associates as being demonstrative of the favorable attitude toward software firms on the IPO market.

Davidson, a publisher of educational software, went public March 31. On its prospectus, Davidson stated that it expected to go public at $10 to $12 per share. But demand was high enough to command a $13-per-share price. Shortly after the stock started trading, its price shot up to $16 a share.

Another recent high-flyer in the computer software business was San Mateo-based 3DO. This company's stock began trading on May 4 at $15 a share. In its first two days on the market, it gained $9 a share and closed at $24 on May 6.

So, although things have slowed down, most analyst insisted that the window of opportunity is not closing on the IPO market.

Simply put, the market will be more selective and will be more competitive. Despite those more-restrictive conditions, analysts said they expect that the volume of IPOs will remain relatively high because the alternatives for financing remain few.

James Zukin, chairman of the executive board of Los Angeles-based investment banking firm Houlihan Lokey Howard & Zukin, explained that, although IPO activity has slowed for his firm, it is and will remain significant mainly because of the lack of other options.

"Making IPOs remains an alternative for many companies because the domestic mergers-and-acquisitions market is still slow," Zukin said.

Koffler observed that the IPO market will remain active so long as there are few alternatives to raising capital. And demand for IPOs by investors will stay strong because of the higher returns that they offer relative to other investments.

"Interest rates remain low and, as long as they are down, people will have to go where they can get a good return. Right now that just happens to be the stock market," Koffler said.

Sutro & Co., he noted, is currently busy with several IPOs for Los Angeles County-based companies. Presently, that firm has three IPOs in registration and four IPOs that are in various stages of preparation.

Fact is, smaller companies have few other places to go, besides Wall Street, for capital. Kevin Schultz, managing director of investment banking firm Chanin & Co. in Los Angeles, pointed out that there is "no rush on the part of banks or asset-based lenders to finance small to medium-sized businesses."

Lloyd Greif, president of Los Angeles-based investment banking firm Greif & Co., said he believes the current slowdown of the market will be healthy in the long run. "Last year, everything was automatically trading at a premium. Now, more quality companies will be able to make it through the window," he said. "Things have slowed down, but good new issues will still go through the window. Low interest rates continue to make equity attractive to investors. So it may remain slower than last year, but still strong."