It Takes IVillage to Raise Women First’s IPO Hopes

Women First Healthcare Inc., a San Diego-based Internet firm targeting middle-aged women’s changing health needs, has filed for a first-time stock offering through underwriter Bear, Stearns & Co.

Women First hopes to follow in the wake of last week’s successful deal by another women-related Internet firm, IVillage. Women First is looking to profit from the aging population of female baby boomers.

The Census Bureau estimates that the number of women ages 35 to 69 will grow from about 57 million in 1998 to about 67 million in 2010. Each day during the next 11 years, about 4,000 to 5,000 women will enter menopause.

Through its Web site (https://www.womenfirst.com), sales force and direct-to-consumer marketing, Women First offers information, pharmaceutical products, self-care products, education programs and support systems for women.

“This definitely has all the earmarkings of a winning Web offering and a robust IPO,” said Gail Bronson, analyst with IPO Monitor, a Calabasas data firm, “a perfect example of how content and commerce can be combined in both a socially responsible and potentially lucrative way.”

The Women First Web site features “As We Change,” a catalog created for women 40 and older offering products designed to make aging easier. The company, founded in 1996, has 116 full-time employees. It posted a loss of $9.9 million for its latest fiscal year.

“Women First fills a gaping hole in the marketplace for sober, non-frantic and reliable information about health care for women baby boomers,” Bronson said. “I like the tone of this site a lot and look forward to seeing more when it is complete.”

Because it has filed to go public, the company is in the Securities and Exchange Commission-imposed “quiet period” and could not comment on the deal.

Several analysts noted that the company has strong sponsorship: Johnson & Johnson holds a 15% stake in the company; the top 14 executive officers and directors hold another 56%.

“I expect this company to be well-managed, given the pharmaceutical and investment company pedigrees of their key executives,” Bronson said.

The IPO proceeds can be used to increase sales and marketing efforts, acquire other companies and repay a portion of $7.5 million in short-term notes the company will issue as part of a private placement this month, the filing documents state.

Last week was another strong one for Internet IPOs, punctuated by IVillage, which zoomed to $80.13 in its Friday debut, 234% above its $24 opening price.

“This is a good period,” said David Menlow, president of IPO Financial Network, a New Jersey data company. “The Internet is here, and its roots are getting deeper in the financial markets. We will still have some shakeouts, however.”

Many non-Net IPOs have had trouble lately, such as Los Angeles-based executive search firm Korn/Ferry.

In fact, some nervous companies that aren’t Internet-related are putting their deals on ice until investors’ appetite for non-Net stocks improves. Last week, EXE Technologies Inc., a maker of software for keeping track of inventory, and G.I. Joe’s Inc., a Portland, Ore., seller of outdoor sporting goods and auto parts, both shelved their offerings.

Dallas-based EXE, whose investors include Dell Computer Corp. founder Michael Dell, planned to raise about $100 million. G.I. Joe’s hoped to raise about $15 million through Irvine-based underwriter Cruttenden Roth.

G.I. Joe’s canceled its IPO primarily because of “the current adverse market for small-cap stocks,” the company said in a prepared statement. “If the market for small-cap stocks improves, the company might consider an initial public offering at a later date.”

But many California companies are going forward, with several closely watched IPOs expected this week, including from Irvine-based Autobytel.com and Santa Clara-based Autoweb.com, two Internet car sellers. Careside Inc., a Culver City firm that develops point-of-care blood-testing systems, is also expected to go public this week, according to IPO Monitor.

One company that may have some trouble if the market doesn’t become more hospitable to offline start-ups is Culver City-based Hospitality Design & Supply Inc., a food-service equipment and supply distributor. It hopes to raise $81.3 million through underwriter BancBoston Robertson Stephens.

The company, which was formed last year, hopes to be a consolidator in the highly fragmented business of food service and equipment supplies. Hospitality’s clients include restaurants, hotels, schools, casinos, stadiums and prisons. Its products range from heavy equipment to china, glassware and silverware.

Still, some analysts believe the bottom line is that this deal will have a tough time given investors’ fascination with Internet stocks.

“The fact of the matter is, it’s hard to get much air under your wings if you are not a ‘dot-com’ play,” Bronson said. “There is an unabated appetite for Internet IPOs, and I don’t see any end in sight.”

Times wire services were used in compiling this report. Remember that initial public offerings are highly speculative and not suitable for all investors. Debora Vrana, who covers investment banking and the securities industry for The Times, can be reached by e-mail at debora.vrana@latimes.com or by mail at Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053.