IPOs Clanked in 2007

A few issues went up, but here are the nine that dragged investors down

Craig Matsumoto, Editor-in-Chief, Light Reading

January 4, 2008

4 Min Read
IPOs Clanked in 2007

Technology IPOs seem back in vogue, but a look at the 2007 crop shows the market can still be a cruel mistress.

That's got to put some shaking in the knees of companies like ANDA Networks Inc. , Broadview Networks Holdings Inc. , Fabrinet Co. Ltd. (NYSE:FN) , and the newly formed Source Photonics Inc. -- all of which have active S-1 forms filed with the Securities and Exchange Commission (SEC) .

(See ANDA Files for $86M IPO, IPO Alert: Broadview Files Its S-1, IPO Alert: Fabrinet, and Source Photonics Files for IPO.)

As part of our look back at 2007, we've tallied the results of the year's telecom-related IPO disappointments. Consider it an adjunct to our reports on the stock market's ups and downs. (See 2007 Top Ten: Share Shrinkers and 2007 Top Ten: Stock Rockets.)

To be fair, some IPOs came up roses. Infinera Corp. (Nasdaq: INFN) couldn't be too unhappy about its debut, and Aruba Networks Inc. (Nasdaq: ARUN) and Starent Networks Corp. (Nasdaq: STAR) fared well. Indian firm Idea Cellular Ltd. also gave good returns, although its IPO price of 75 rupees translates to less than $2.

Table 1: Top Gaining IPOs, 2007

IPO price

Dec. 31, 2007closing

Gain

Starent (STAR)

$12

$18.25

+52.1%

Aruba (ARUN)

$11

$14.91

+35.5%

Intellon (ITLN)

$6

$7.54

+25.7%

Entropic (ENTR)

$6

$7.28

+21.3%

Infinera (INFN)

$13

$14.84

+14.2%





We included Entropic Communications Inc. (Nasdaq: ENTR) and Intellon Corp. (Nasdaq: ITLN) there, even though both entered the public market in December, meaning they don't have much in the way of trading history. (See IPO Flatliners.)

A bigger proportion of IPOs delivered less happy news.

Table 2: Top Non-Gaining IPOs, 2007

IPO price

Dec. 31, 2007closing

Loss

BigBand (BBND)

$13

$5.14

-60.5%

Towerstream (TWER)

$7.75

$3.07

-60.4%

Limelight (LLNW)

$15

$6.89

-54.1%

Clearwire (CLWR)

$25

$13.71

-45.2%

Opnext (OPXT)

$15

$8.85

-41%

Virgin Mobile (VM)

$15

$8.89

-40.7%

Veraz (VRAZ)

$8

$4.82

-39.75%

Airvana (AIRV)

$7

$5.43

-22.4%

MetroPCS (PCS)

$23

$19.45

-15.4%





Rather than use a countdown format, we'll start with the hardest-luck stories:

1. BigBand Networks Inc. (Nasdaq: BBND), down 60.5 percent. BigBand started hot, but its second-half earnings gave its shares a new direction. (See BigBand Looks to Resolve BigProblems, BigBand Terminates CMTS, and Creating a Silver Lining Among the Dark Clouds.)2. Towerstream Corp. (Nasdaq: TWER), down 60.4 percent. Technically not an IPO, Towerstream made it to the Nasdaq from over-the-counter territory, with less than towering results. (See TowerStream Falls on $40M Share Offer.)

3. Limelight Networks Inc. (Nasdaq: LLNW), down 54 percent. CDNs are hot, but Limelight is still recovering from a summer swoon. (See Limelight's Dim Q2.)

4. Clearwire LLC (Nasdaq: CLWR), down 45 percent. WiMax just got no respect here. (See No. 2 and Clearwire's Bubble Bursts.)

5. Opnext Inc. (Nasdaq: OPXT), down 41 percent. For telecom photonics, public markets were tough all around. (See Optical Outlook.)

6. Virgin Mobile Telecoms Ltd. , down 41 percent. Virgin didn't raise the $506 million it hoped for, and it's been downhill in the three months since. (See Virgin Mobile USA Makes $412M in IPO.)7. Veraz Networks Inc. (Nasdaq: VRAZ), down 40 percent. Investors got jittery from the start, in Veraz's case. (See Veraz Looks for Respect.)8. Airvana Inc. , down 22 percent. One IPO that couldn't find nirvana. (See Airvana Makes $58M in IPO.)

9. MetroPCS Inc. (NYSE: PCS), down 15 percent. Those billboards with the screaming people? They make a little more sense now. (See MetroPCS Eyes $1B IPO.)

10. There is no No. 10, although Espial Group Inc. (down 53 percent on the Toronto exchange) would have fit, had we considered non-U.S. IPOs.

— Craig Matsumoto, West Coast Editor, Light Reading

About the Author(s)

Craig Matsumoto

Editor-in-Chief, Light Reading

Yes, THAT Craig Matsumoto – who used to be at Light Reading from 2002 until 2013 and then went away and did other stuff and now HE'S BACK! As Editor-in-Chief. Go Craig!!

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like