Some have done better than others. The first debut of the year was by SecureWorks (NASDAQ: SCWX), a cyber security business which is owned by computer giant Dell, which went public on April 22. Its shares traded on the NASDAQ under SCWX and opened at US$13.89 — under its IPO price of US$14 — before rising to US$14.56 later that day.
The second tech IPO of 2016 saw a big spike on May 14. Shares of Acacia Communications (NASDAQ: ACIA), a maker of high-speed optical networking products, outperformed market expectations, rising by 36% on its debut on the NASDAQ. The 4.3 million shares were offered at the top of the range at US$23 per share, to raise $103.5 million. The company’s stock soared to above US$$30 on its first day, yielding a market capitalization of more than US$1 billion.
Another two — Twilio and Nutanix — also filed with regulators to go public. Communications startup, Twilio Inc, is expected to test the market with an IPO by the end of June. At the high point of its estimated price range, the company would be valued at US$1.15 billion, just above its April 2015 valuation of US$1 billion. Second was Nutanix, a supplier of storage solutions for data centers.
Japanese messaging company Line, plans to go public in July in both the New York Stock Exchange as well as Tokyo Stock Exchange. In what is expected to be the largest IPO of the year, the company is reportedly planning an initial public offering of around US$3 billion.
While the handful of IPOs might provide a glimmer of excitement for the sector, its is not quite a comeback just yet. This is because only better-quality and highly scaled businesses are able to launch an IPO and survive in the current meager market situation. #MergentInc #industryreports #informationtechnology