IDG Statement Service – Though the tech IPO marketplace has gone from a boil to a simmer, some companies in areas such as ample data and cloud-related technology are plunging in.
Aloof this week, bag intelligence software provider Picture Software and cloud-based marketing automation vendor Marketo announced IPO plans. So far this year five tech vendors accept launched IPOs, according to the IPOScoop website.
But there’s no suspect that the IPO marketplace for tech has cooled relative to other sectors. For archetype, already 11 financial companies and six health affliction companies accept issued IPOs in 2013. Going forward, there are added financial and health affliction companies that aim IPOs than tech companies, according tocompiled by IPOScoop.
In comparison, at this age last year tech was by far the IPO baton, representing 37 initial offerings in the 12 months to Airing 2012 while the second-ranking sector, consumer services, accounted for alone 26 IPOs. What happened?
“There is a able corollary between technology IPOs and the Nasdaq, which is tech-laden,” said John Fitzgibbon, who runs IPOScoop. “Traditionally, 60 percent to 70 percent of tech IPOs were on the Nasdaq, and the Nasdaq has been a laggard.”
So far this year, the Nasdaq Composite is up 6.8 percent, compared to 12.27 percent for the Dow Jones Composite Index and 9.38 percent for the broad-based Standard and Bad off’s 500 Index. Within the Nasdaq itself, the Computer Stock Index is up aloof 0.42 percent for the year, compared to 10.53 percent for industrials and 14.72 percent for insurance companies.
“It’s an aged saying but the tape tells the adventure — the demand aloof isn’t there for tech stocks,” said Fitzgibbon. Still, within the tech IPO scene there are ardent spots, according to cloud-related technology, he pointed out.
Analytics software vendor Picture, which decided it was age to announce its plans for an IPO earlier this week, is an archetype. Aloof last month,with connectors designed to acquiesce its users to assignment with cloud-based data from Google Analytics, Salesforce.com and Google BigQuery. Picture is seeking to lift $150 million. Unlike other adolescent analytics companies, the company turned a profit last year, earning grasp income of $1.6 million on revenue of $127.7 million.
Again this week, cloud-based marketing automation vendor Marketo announced plans to lift up to $75 million in an IPO. Marketo’s revenue jumped from about $14 million in 2010 to $58.4 million last year. However, the company absent $34.4 million after spending $37.8 million on sales and marketing.
Added broadly, the dip in tech IPOs has taken abode within a general levelling-off of public offerings. “U.S. IPO volume was stable in the 1Q13, with 31 deals raising $7.6 billion in proceeds — the US IPO marketplace continued to trend sideways in the aboriginal quarter,” according to the latest Renaissance Chief IPO Analysis.
Wall Street Beat: Tech IPO marketplace cools but some vendors bob in anyway
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Originall posted April 6, 2013