In one corner is Meru Networks (NASDAQ: MERU proposed), a California-based provider of products that allow for the transmission of video, voice, and data over WiFi connections for corporate enterprises, as well as the education, health care, hospitality, manufacturing, and retail sectors.
And in the other corner is SS&C Technologies Holdings (NASDAQ: SSNC proposed), a Connecticut-based provider of software products and software-enabled services to the financial services industry.
No, they won’t be facing off against each other. But they will be spearheading an emerging trend in this year’s IPO market. It’s technology.
Let’s take a minute to see where these IPOs are coming from.
Lessons from the Last 100 IPOs
Looking back over the Last 100 IPOs takes us to May 1, 2008. The “win-loss” record of the 100 showed 57 in the winners’ circle, 39 losers and four unchanged. The average gain for these 100 was 10.4 percent versus a loss of 3.4 percent for the Nasdaq Composite Index.
The technology IPOs produced a much better return. Of the Last 100 IPOs, 23 were technology. On March 26, 2010, 16 were winners, six losers and one was unchanged. Their average gain was 19.1 percent.
Last week’s traffic underscored this two-year trend.
Two of the week’s five offerings were from technology-related industries:
- Calix Networks (NYSE: CALX) a provider of communications access systems and software that enable communications service providers. Its IPO was priced at $13 per share, opened at $17, and closed its opening day at $15.10, UP 16.2 percent from its initial offering price.
- MaxLinear (NYSE: MXL) a provider of highly integrated, RF analog and mixed-signal semiconductor solutions for broadband communications applications. Its IPO was priced at $14 per share, opened at $17.95, and closed its opening day at $18.70, UP 43.9 percent from its initial offering price.
An IPO Tech Duet
That has people looking at this week’s technology offerings.
Meru Networks plans to price 4.4 million shares at $13 to $15 each. The company will offer about 3.6 million shares and selling shareholders will offer about 811,000 shares. The deal is expected to be priced Tuesday evening to trade on Wednesday.
SS&C Technologies Holdings plans to price 10.7 million shares at $13 to $15 each. The company will offer about 8.2 million shares and selling shareholders will offer about 2.5 million shares. The deal is expected to be priced Tuesday evening to trade on Wednesday.
These are just two of the five deals expected to make their debuts on this week’s calendar, but the spotlight will be on the tech duo.
Disclosure: Neither the author nor anyone else on theIPOScoop.com staff has a position in any stocks mentioned, nor do they trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.