This Week's IPOs Part II: Interactive Brokers Group, NeurogesX Inc., Qiao Xing Mobile Communication

The rest of the IPOs on deck for this week are: Interactive Brokers (IBKR), an automated global market maker that trades securities, futures and forex instruments; NeurogesX Inc. (NGSX), a company that develops new pain management medications based on known chemical entities; and Qiao Xing Mobile Communication (QXM), a manufacturer of mobile handsets for the Chinese Market.

All quotations are from the companies' most recent S-1 filings with links provided.

INTERACTIVE BROKERS GROUP, INC. (IBKR)
Business Overview (from prospectus)

We are an automated global electronic market maker and broker specializing in routing orders and executing and processing trades in securities, futures and foreign exchange instruments as a member of more than 60 electronic exchanges and trading venues around the world. We are a holding company and, after completion of this offering, our primary assets will be our ownership of approximately 5.1% of the membership interests of IBG LLC, the current holding company for our businesses, and our controlling interest and related contractual rights as the sole managing member of IBG LLC. The remaining approximately 94.9% of IBG LLC membership interests after completion of this offering will be held by IBG Holdings LLC, a holding company that will be owned by the current members of IBG LLC, including our founder, chairman and chief executive officer, Thomas Peterffy, and his affiliates.

Offering: 20.0 million shares at $23.00 - $27.00 per share. Net proceeds of approximately $490.6 million will be used "to purchase membership interests in IBG LLC from IBG Holdings LLC representing approximately 5% of the outstanding membership interests in IBG LLC."

Lead Underwriters: WR Hambrecht, HSBC Corporation

Financial Highlights:

Total net revenues increased $323.3 million, or 35%, to $1,252.4 million for the year ended December 31, 2006 from $929.1 million for the year ended December 31, 2005... Non-interest expenses increased by $131.0 million, or 36%, to $490.8 million for the year ended December 31, 2006 from $359.8 million for the year ended December 31, 2005. As a percentage of total net revenues, non-interest expenses were 39% for each of the years ended December 31, 2006 and 2005... Net income increased $198.7 million, or 37%, to $734.2 million for the year ended December 31, 2006 from $535.5 million for the year ended December 31, 2005. Net income as a percentage of net revenues was 59% for the year ended December 31, 2006 compared to 58% for the year ended December 31, 2005.

NEUROGESX, INC. (NGSX)
Business Overview (from prospectus)

We are a biopharmaceutical company focused on developing and commercializing novel pain management therapies. We are assembling a portfolio of pain management product candidates and are developing innovative new therapies based on known chemical entities. Our initial focus is on chronic peripheral neuropathic pain including postherpetic neuralgia, or PHN, painful HIV-distal sensory polyneuropathy, or HIV-DSP, and painful diabetic neuropathy, or PDN. Our most advanced product candidate, NGX-4010, a synthetic capsaicin-based topical patch designed to manage pain associated with peripheral neuropathic pain conditions, has completed two pivotal Phase 3 clinical trials that have met their primary endpoints, one in PHN and one in HIV-DSP. The results demonstrated that a single 30 or 60 minute application of NGX-4010, depending on the indication, may provide at least 12 weeks of clinically-meaningful pain relief. We expect to file a marketing authorization application, or MAA, in Europe for NGX-4010 in 2007 based upon existing clinical trial data. If the safety and efficacy of NGX-4010 are confirmed by our two ongoing Phase 3 clinical trials, we intend to submit a new drug application, or NDA, in the United States in 2008. We are developing a non-patch liquid formulation of synthetic capsaicin, NGX-1998, and an opioid analgesic for use in managing chronic pain. We currently have no products approved for commercial sale and have not generated any revenues. We hold all worldwide commercial rights to our product candidates and are actively engaged in partnering discussions in anticipation of European product approval and launch.

Offering: 4.0 million shares at $13.00 - $15.00 per share. Net proceeds of approximately $49.8 million will be used to fund development activities, including clinical trials for NGX-4010 and other potential product candidates, to increase working capital, to create a public market for the company's common stock, to increase the company's ability to access the capital markets in the future, for general corporate purposes and to provide liquidity for existing stockholders.

Lead Underwriters: Morgan Stanley, Lazard, Pacific Growth Equities

Financial Highlights:

We are a development stage company. To date, we have not generated any revenues and have funded our operations primarily by selling equity securities and establishing debt facilities. We have incurred significant losses since our inception. As of December 31, 2006, we had a deficit accumulated during the development stage of approximately $127.5 million. We expect our operating losses to increase over the next several years as we continue clinical study of NGX-4010, seek regulatory approvals and, if these efforts are successful, commence commercialization activities. During this time, we also intend to increase our focus on preclinical and clinical development of additional product candidates including NGX-1998 and our opioid analgesic, as well as other product candidates which may be internally developed or acquired.

QIAO XING MOBILE COMMUNICATION CO., LTD. (QXM)
Business Overview (from prospectus)

We are one of the leading domestic manufacturers of mobile handsets in China in terms of unit sales volume. We manufacture and sell mobile handsets based primarily on Global System for Mobile Communications, or GSM, global cellular technologies. We operate our business primarily through CEC Telecom Co., Ltd., or CECT, our 93.4%-owned subsidiary in China. Currently, all of our products are sold under the “CECT” brand name.

We develop, produce and market a wide range of mobile handsets, with increasing focus on higher-end and differentiated products that generally generate higher profit margins. We sold approximately 1.73 million and 2.26 million handset products in 2005 and 2006, respectively. The average selling price of our handsets was RMB1,012 in 2005 and RMB1,094 ($140) in 2006.

Offering: 16.7 million shares at $11.00 - $13.00 per share. Net proceeds of approximately $133.9 million will be used to repay debt and to fund capital expansion and purchase of new equipment for handset manufacturing facilities. Remaining proceeds will be used for general corporate purposes.

Lead Underwriters: UBS Investment Bank, Cowen & Company

Financial Highlights:

Our revenue increased by 36.1% from RMB1,864.1 million in 2005 to RMB2,537.2 million ($325.1 million) in 2006...Our cost of goods sold increased by 35.1% from RMB1,526.4 million in 2005 to RMB2,062.2 million ($264.2 million) in 2006...Our gross profit increased by 40.6% from RMB337.7 million in 2005 to RMB475.0 million ($60.9 million) in 2006, primarily due to increased sales volume of our handset products. Our gross margin increased from 18.1% in 2005 to 18.7% in 2006...[O]ur operating income increased by RMB173.5 million from RMB100.4 million in 2004 to RMB273.9 million in 2005, and by RMB92.1 million to RMB366.0 million ($46.9 million) in 2006 compared to 2005. Our operating margin was 7.1%, 14.7% and 14.4%, respectively, in 2004, 2005 and 2006.