New Stocks Are Paying Off

 

With $692.2 million already raised through 95 Initial Public Offerings in the first quarter, 1981 may exceed 1972's record dollar amount of $2.7 billion raised by 568 offerings. (The dollar has since been weakened by inflation, of course. In today's terms, the sum would be halved. Thus a truedollar record appears likely.) Whether the number of new issues themselves outpaces last year's 237 remains to be seen, but the signs are propitious: The month of April alone saw 56 companies brought to market. Even so, there will still be a long way to go to reach 1969's IPO total of 1,026. But according to a six-year review published recently in the weekly Going Public, the trend is decidedly up. Only 15 public offerings were completed in the recession year of 1974, followed by 15 again in 1975, 34 in 1976, 40 in 1977, 45 in 1978, 81 in 1979, and an impressive jump to 237 in 1980.

Further, the aftermarket performance of the 452 1975-80 new issues included in the survey seemed to assure continued investor confidence in the IPO sector. (To help readers judge for themselves, INC. is now including each IPO's first public quote.) As of December 31, 1980, a full 77% were above their offering price, with only 21% below (2% were unchanged). No fewer than 58 of them had risen by at least 500%. The standout performer for the period was St. Jude Medical, a manufacturer of heart valves, which went public through E. F. Hutton at $3.50 ($0.88 adjusted) in 1977, by the close of 1980 it was selling 2,855% higher.

Hambrecht & Quist was the most active underwriter in the six-year period, with 31 IPOs, 27 of which were up. Second was Blinder, Robinson, 24 of whose 26 low-priced new issues climbed higher. The best record of all, however, belonged to Rotan Mosle, who went 10 for 10.

The review sounds one sour note. Of the eight companies that went public on their own without an underwriter, four presently have no public market, and one has gone bankrupt. But the go-to-alone route is not altogether barren: One company's shares have doubled.

Note: This table may be divided, and additional information on a particular entry may appear on more than one screen.

INITIAL PUBLIC OFFERINGS: APRIL 1981

Offering

Company Business Size Price Approx.

($000) P/E

Scott Instruments Speech recognition tech. 3,300 2 NE

Delta Natural Gas Gas distributor 4,625 9.25 17

C-Pac Photo silver recovery 2,600 4.50 16

E.I.L. Instruments Analog/digital meters 6,000 12 24

Exploration Surveys Geophysical data 4,638 6.625 11

Gerber Systems Mfr. CAD systems 7,650 12.75 19

Management Computer software 24,000 16 70

Science America

Prairie Producing Oil & gas exploration 38,750 15.50 66

Intergraph Computer graphics 27,000 18 54

Ultimate Minicomputer hardware 5,000 6 69

Jet Industries Mfr. electric cars 7,000 1,000a NE

Silicon Electro- Single crystal ingots 3,000 6 12

Physics

Monosil Water fabrication for integr. 5,000 4 56

circuits

BIW Cable Systems Specialty cable mfr. 7,282 14.50 19

Computer Entry OCR equip. mfr. 4,900 7 22

Systems

Aero Services Int'l Ground support 4,500 3 21

Computer Magnetics Mfr. transformers 4,000 8 21

Intermagnetics Mfr. supermagnets 6,000 6 19

General

U.S. Oil Oil & gas 3,000 5be 15

Dawson Geophysical Acquires seismic data 8,905 13 42

ENS Biological Biotech. products 16,500 15 11

Greatwest Hospitals Manages hospitals 16,985 19.75 32

Reel Energy Oil & gas exploration 4,200 12b 16

Swift Independent Meat producer 37,500 15 87

Dorado Micro Rigid disk drives 15,600 13 31

Systems

Intertec Data Desktop computers 33,750 22.50 14

Systems

Pizza Time Theatre Restaurant franchise 16,000 15 41

Petroleum Offshore transport 26,750 13.375 21

Helicopters

Telesphere Int'l Telephone accounting 4,000 10 32

technology

EnerServ Products Drilling equip. 20,910 17 73

Kencope Energy Oilfield services 12,000 15 32

Fidelity Medical Cardiac testing equip. 3,000 3b 54

Video-To-Go Cassette marketing 1,500 3 S

Mizel Petro Oil & gas exploration 10,000 2.50c 59

Resources

Crawford Energy Drilling 6,750 9 45

ike Lovelady Oil & gas exploration 4,250 8.50 NE

Plains Resources Oil & gas exploration 7,000 3.50b NE

Quest Medical Mfr. surgical equip. 4,500 5b NE

Children's Place Clothing stores 8,000 12.50 71

American Fiber Mfr. optical fibers 4,550 6.50 NA

Optics

Prodigy Systems Mfr. computer systems 2,700 4.50 12

Science Dynamics Mfg. telecomm. equip. 2,000 2 31

New United Business Business brokerage 1,500 3d NA

Company Business Aftermarket Underwriter

trade (bid)

Scott Instruments Speech recognition 7 5/8 Rooney, Pace

tech.

Delta Natural Gas Gas distributor 9 1/4 Thomson McKinnon

C-Pac Photo silver recovery 5 1/2 J. E. Sheehan

E.I.L. Instruments Analog/digital 9 Baker, Watts

meters

Exploration Surveys Geophysical data 6 5/8 Faherty & Faherty

Gerber Systems Mfr. CAD systems 12 3/4 Drexel Burnham

Management Computer software 17 Alex. Brown/Robinson-

Science America Humphrey

Prairie Producing Oil & gas exploration 11 1/2 Blyth

Eastman/Rotan Mosle

Intergraph Computer graphics 25 1/2 Dean Witter/Robinson-

Humphrey

Ultimate Minicomputer 8 1/8 Rooney, Pace

hardware

Jet Industries Mfr. electric cars 1,000 Weinrich/Rademaker

Silicon Electro- Single crystal ingots 6 D. H. Blair/Weinrich

Physics

Monosil Water fabrication for 4 Paulson

integr.

circuits

BIW Cable Systems Specialty cable mfr. 15 3/4 Warburg Paribas

Computer Entry OCR equip. mfr. 6 3/4 Hambrecht/Baker

Watts

Systems

Aero Services Int'l Ground support 3 3/8 John Muir

Computer Magnetics Mfr. transformers 7 1/2 Drexel Burnham

Intermagnetics Mfr. supermagnets 6 Allen

General

U.S. Oil Oil & gas N Mahler & Emerson

Dawson Geophysical Acquires seismic 14 3/4 Rotan Mosle

data

ENS Biological Biotech, products 12 3/4 Bache Halsey

Greatwest Hospitals Manages hospitals 18 1/2 Bateman Eichler

Reef Energy Oil & gas exploration 11 3/4 Ladenburg,

Thalmann

Swift Independent Meat producer 14 7/8 Salomon/Hutton/Shearso

n

Dorado Micro Rigid disk drives 16 1/2 Montgomery

Systems

Intertec Data Desktop computers 22 3/4 Bear, Stearns

Systems

Pizza Time Theatre Restaurant franchise 21 Rothschild/Robertson

Petroleum Offshore transport 13 3/8 Allen

Helicopters

Telesphere Int'l Telephone 15 D. H. Blair

accounting

technology

EnerServ Products Drilling equip. 16 3/4 Shearson

Kencope Energy Oilfield services 14 3/4 Eppler, Guerin

Fidelity Medical Cardiac testing 3 1/4 Patten

equip.

Video-To-Go Cassette marketing N Seaboard Planning

Mizel Petro Oil & gas exploration 2 3/4 N. Donald

Resources

Crawford Energy Drilling 8 3/4 Schneider, Bernet

Ike Lovelady Oil & gas exploration 8 1/2 Rauscher Pierce

Plains Resources Oil & gas exploration N Fitzgerald, DeArman

Quest Medical Mfr. surgical equip. 5 1/2 Sherwood

Children's Place Clothing stores 14 1/2 Donaldson, Lufkin

American Fiber Mfr. optical fibers 6 3/4 John Muir

Optics

Prodigy Systems Mfr. computer 4 D. H. Blair

systems

Science Dynamics Mfg. telecomm. 1 7/8 Mahler & Emerson

equip.

New United Business Business N Universal Heritage

brokerage

Initial public offerings sold at $1.00 or less are not included.

NA Not available

NE Negative earnings at last available report

S Start-up

be Best efforts

a Units of 300 shares + 150 warrants

b Units of 2 shares + 1 warrant

c Units of 1 share + 1 warrant

d Units of 1 share + 1/2 warrant

N Not trading or not available

Data: New Issues, The Institute for Economic Research Inc., 3471 N. Federal Hwy., Ft. Lauderdale, FL 33306