Predicting The Next IPO Wave: The Era Of The Enterprise
Over the last three years, we've seen an increasing number of tech IPOs - many from consumer-facing companies that we've long known were headed for an IPO. Zuora is the most likely product that is used by nearly all the companies in this article, meaning that it has been part of the success of an entire generation of SaaS companies.
Last week's IPOs were up an average of 32% while the S&P 500 gained only 1%. Technology and health care companies ( especially biotechs ) continue to be the most active sectors of the IPO market, and last week they represented 19 of the 23 to price, set terms or submit initial filings. A week of strong returns for tech and biotech companies.
The health care sector has seen more IPOs than any other industry over the last year. Akebia Therapeutics raised $100 million before expenses, as the company expanded its IPO to 5.9 million shares and the offering priced at $17 per share. That was at the low end of MediWound's expectations, as it expected the offering to price at $14 to $16 per share. The stock is listed on the Nasdaq Global Market under the ticker symbol "MDWD."
“This clearly is shaping up to be the best year for IPOs in a decade” says @SteveCase #IPO
Russia's MICEX index, already hurt by an economic downturn, has fallen 13 percent this year, while the rouble is down 11 percent against the dollar on concerns about the impact of deteriorating relations with the West. Olga Dergunova, head of the state property management agency, said on Tuesday that Russia's government could postpone major privatisation deals expected in the second quarter if the Ukrainian crisis took a heavy toll on the economy.
Agile Therapeutics, Aldeyra Therapeutics and GlobeImmune have all queued up for Wall Street debuts, hoping 2014's bull market lasts long enough to pull off offerings. NS2, the company's sole prospect, is slated for a Phase III study in the rare Sjogren-Larsson syndrome; Phase II trials in discoid lupus, acute anterior uveitis and ocular rosacea; and a Phase I study to test the safety of an oral formulation of the drug. The trio joins a bevy of biotechs looking to cash in on Wall Street at the tail end of the first quarter.
A10 Networks ( ATEN ), which provides software-based appliances that optimize data center performance, plans to raise $175 million by offering 12.5 million shares at a price range of $13.00 to $15.00. The Dublin, Ireland-based company plans to list on the NASDAQ under the symbol THNX. At the midpoint of the proposed range, Versartis would command a market value of $409 million.
That's good news for equity capital markets bankers at UBS, Morgan Stanley, First NZ Capital and Credit Suisse who have been warily watching the 32.17 point, 1.9 per cent, fall in the MSCI World Index from a 2014 high of 1,686.11 on March 6. New Zealand's government will announce the size of the book build on Wednesday, March 26.
San Jose-based A10 Networks could make it three Bay Area $1 billion unicorns in three weeks if its IPO hits expectations, following blockbuster offerings from Coupons.com two weeks ago and Castlight Health on Friday. . The bulk of that came in an $80 million infusion by Summit Partners in October. Redwood City-based Versartis, led by CEO Jeffrey Cleland , could raise more than $100 million in its IPO, the latest in a string of local health and bio offerings. .
Lately pro investors have been keeping a close watch on the IPO market in an attempt to generate outsized gains. Although Cramer is concerned that the quantity of these hot IPOs feels a little frothy, he also said, "You don't have to like that fact in order to recognize the pattern and profit from it."
Amid a string of cloud IPOs this week, Jim Cramer thinks 3 of them warrant close attention. "Paylocity is expected to price between $14 and $16 on Wednesday. At the mid-point of that range, the stock would be trading at 6 times sales, which is a discount to the group's average of 7 times sales, and much cheaper than, say, a stock like Cornerstone selling for 10.5 times sales. So if you can get a piece of the Paylocity IPO, I say give it a shot."
Alibaba's much-ballyhooed stock has been ballyhooed for a reason. Maybe even more importantly, it could mark the start of a comeback of sorts for the Swiss bank, which dominated the deal rankings back in in the mid-2000s.
Two of the smaller community banks in Massachusetts say they want to go public. Larger banks have the size and scale necessary to absorb cost increases, but the situation forces small banks to grow. The bank says it intends to use the proceeds from the offering to grow its deposit base, as well as its lending operation and branch network.