3 More IPOs This Week Enter Troubled Waters (AGAM, DOLE, ZSTN)

The IPO market has not been going well. Over the weekend we gave a detailed run down of how many busted IPOs we had seen occur in the last couple of months, and this is setting the market up for trouble in companies which are considering becoming public.  AGA Medical Holdings (NASDAQ: AGAM), Dole Food Company (NYSE: DOLE), and ZST Digital Networks, Inc. (NASDAQ: ZSTN) are all on deck this week.

AGA Medical Holdings (NASDAQ: AGAM) has already lowered its IPO price range from $19-$21 down to $15-$16 in an amended filing.  The company makes minimally invasive devices that are used to treat heart defects and cardiovascular disease.  The 13,750,000 shares are being sold by Bank of America Merrill Lynch, Citigroup, and Deutsche Bank.

Dole Food Company (NYSE: DOLE) is a company you already know.  You have probably eaten one of its pineapples or its other fruits and vegetables. The near-$500 million IPO may price 35,715,000 shares tonight in a price range of $13.00 to $15.00 per share.  The lead underwriters are listed as Goldman Sachs, Bank of America Merrill Lynch, and Deutsche Bank.

ZST Digital Networks, Inc. (NASDAQ: ZSTN) is a provider of digital and optical network equipment systems to cable TV operators in China, and it has announced that its IPO of 3,125,000 shares of common stock priced at $8.00 per share. We had an indicated price range of $7.50 to $8.50 and the company has granted the underwriters an over-allotment option of for a 45-day period for up to 468,750 shares.  Rodman & Renshaw is the lead underwriter, and a firm called WestPark Capital is acting as co-manager.

• Update on ZSTN: Shares have begun trading after its pricing and we have seen 1.8 million shares trade hands with the last trade at $8.17 as of 2:40 PM EST.

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Jon C. Ogg
October 20, 2009