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IPOs look to end slump
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April 2, 2000: 9:11 a.m. ET
Analysts hope MetLife, Krispy Kreme will sweeten lackluster market
By Staff Writer Tom Johnson
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NEW YORK (CNNfn) - After stumbling to the finish of the first quarter, the market for initial public offerings could get a jolt this week with the debut of several big-name companies, including Krispy Kreme Doughnuts Inc. and No. 2 U.S. insurer MetLife Inc.
Analysts hope the two well-known names, combined with a handful of upstart wireless technology firms, can help re-energize an IPO market that showed little enthusiasm for more than 30 new issues that hit Wall Street over the last two weeks.
Last week, Internet use monitoring firm WebSense jumped more than 165 percent on its first day of trading, but three other new issues declined and most others barely budged from their initial offering price. The slump in biotechnology stocks was particularly severe, forcing several companies to postpone their offerings until this week.
(IPO Calendar)
"The IPO market right now is really struggling," said Jeffrey Hirschkorn, senior market analyst with IPO.com "We may be getting near the final stages of our bubble here."
MetLife seeking some assurance
The week's most widely awaited offering is MetLife, although investor interest has cooled substantially since the company revealed plans to go public. The New York-based insure plans to float 179 million shares at $13 to $15 apiece, raising slightly more than $2.5 billion.
When an additional $1 billion from a private sale of 73 million shares and $1.15 billion from the sale of equity security units are included, the company's $4.6 billion offering still would rank among the biggest of all time.
But that total is still nearly $2 billion less than the record $6.5 billion offering company officials envisioned when they initially declared they would go public by selling 255 million shares at $14 to $16 a share.
Analysts attributed the lowered expectations to the fact that insurance companies have largely fallen out of favor on Wall Street. Still, even at the lower price, MetLife will have a market worth of more than $10 billion.
MetLife will trade under the ticker symbol "MET."
Warm response for Krispy Kreme?
The week's other big-name offering is Krispy Kreme, the Winston Salem, N.C.-based doughnut company that is rapidly developing a cult following in the Northeast and California.
The company, best know for its signature "Hot Original Glazed" doughnut, is expected to price 3 million shares at $18 to $20 a share, raising $57 million. The company's ticker symbol will be "KREM."
 After serving as a Southern institution for most of its 63-year history, Krispy Kreme has been on a rapid expansion drive of late that has placed nearly 150 of its green-and-white logo stores in 27 states.
Although its sales figures are still dwarfed by rival Dunkin' Donuts, Krispy Kreme's sales grew at a 10 percent clip last year.
Still, analysts didn't appear overly enthusiastic about MetLife or Krispy Kreme heading into the week's trading. They said the companies' brand names likely will result in an initial run-up in price, but that market fundamentals and competitive factors could deflate the shares quickly.
"Krispy Kreme will have the initial pop because of its brand name, but down the road it is really questionable," Hirschkorn said.
Wireless firms lead best of the rest
Other IPOs of note this week include Vyyo Inc., "VYYO," a leading provider of broadband wireless access used to deliver high-speed data. The company expects to raise about $95 million by floating 6.75 million shares at $13 to $15 per share.
Although considered one of the pioneers in its field, Vyyo expects companies like Cisco Systems (CSCO: Research, Estimates), Lucent Technologies (LU: Research, Estimates) and Nortel Networks Corp. (NT: Research, Estimates) to enter the field soon. Still, Vyyo already boasts a lucrative contract with ADC Telecommunications (ADCT: Research, Estimates).
Another wireless communications company slated to go public is I3 Mobile Inc., "IIIM," which provides high-speed, personalized communications to wireless devices, such as pagers, cell phones and Palm Pilots.
I3 boasts more than 450,000 subscribers and has distribution pacts with 15 wireless network operators, including AT&T Wireless, SBC Communications Inc. (SBC: Research, Estimates) and Omnipoint Communications Inc. The company expects to price 4.4 million shares at $14 to $16 apiece, raising $66 million.
Ulticom Inc., "ULCM," which provides software for wireless and Internet communications services, has capitalized on growing demand for voice and data communications in recent years, analysts said, attracting clients like Lucent, Swedish firm Ericsson and Germany's Siemens. The company expects to sell 4.25 million shares at $10 to $12 each, raising $46.75 million.
The market's doldrums last week prompted several companies to postpone their offerings until this week, including Israeli technology firm Camtek (CAMT), biotech researcher DrugAbuse Sciences (DASI), German e-commerce software developer Intershop Communications SHP) and drug researcher Rigel Pharmaceuticals (RIGL). 
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