IPO Yet?There are occasional murmurs that the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. market is coming back, but investors in California companies will need cast-iron stomachs before plunging in, if recent experience is any guide. West Los Angeles-based IPO Monitor.com produces updates of the IPO scene, and for California issues over the last 18 months, the picture is brutal. From May 2000 through October of this year, 103 companies based in California went public, but at the end of last month only 18 were trading at or above their offering price. Of the eight California IPOs in November 2000, all are down -- anywhere from 17 percent to 95 percent. Take out the one that is down "only" 17 percent -- Rigel Pharmaceuticals Inc. -- and the seven remaining offerings are each down 60 percent or more as of the end of October. If there is good news, it is that more recent IPOs seem to be faring better. A full nine of the 12 IPOs done in-state since March are trading above their initial offering prices. Of course, the cynical will note the more-recent issues are probably still supported, or "sponsored" by their underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. brokerages, or close institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. , and so yet have to face the market on their own legs. Still, well-known companies can go public in this market, said Jeffrey R. Hirschkom, senior analyst at IPO Monitor, who noted that the week of Nov. 12 had the highest number of IPOs -- eight -- slated in nearly a year. "If you have a brand name that investors recognize, then you can do an IPO' he said. Contributing columnist columnist, the writer of an essay appearing regularly in a newspaper or periodical, usually under a constant heading. Although originally humorous, the column in many cases has supplanted the editorial for authoritative opinions on world problems. Benjamin Mark Cole Mark Cole is a multi-instrumentalist blues and roots musician based in Gloucester, UK Music Mark primarily writes and performs blues music but also writes and performs music influenced by other American roots music genres such as americana, cajun, zydeco, bluegrass and writes about the local investment community for the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Business Journal. |
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