Since the beginning of November 2013 through Friday, March 14, 2014, the average gain for all tech IPOs was 119.8 percent from their initial offering prices. But don’t get carried away in calling the sector a bubble. It isn’t here – yet.
Over the last three-plus months, the calendar has produced 92 IPOs, according to the U.S. Securities and Exchange Commission filings. Only four were technology IPOs. Nope – no tech bubble there.
Nevertheless, last Friday’s results helped the tech IPOs take off. Castlight Health (CSLT), a San Francisco-based provider of cloud-based software to manage healthcare costs, priced its IPO of 11.1 million shares on Thursday evening at $16 each. It closed on Friday at $39.80, UP 148.8 percent from its initial offering price.
Connections and Clouds
With this in mind, let’s take a look at this week’s IPO calendar and its tech-laden offerings:
- A10 Networks (ATEN – proposed) is a San Jose, California-based provider of advanced application networking technologies. The company’s solutions enable enterprises, service providers, Web giants and government organizations to accelerate, secure and optimize the performance of their data center applications and networks. (For more information, please click here: A10 Networks)
- Amber Road (AMBR – proposed) is an East Rutherford, New Jersey-based provider of cloud-based global trade management solutions to allow enterprises to automate import and export processes to flow across international borders. (For more information, please click here: Amber Road)
- Borderfree (BRDR – proposed) is a New York City-based provider of international cross-border ecommerce. It operates a proprietary technology and services platform that enables U.S. retailers to transact business with consumers in more than 100 countries. (For more information, please click here: Borderfree)
- Globoforce Ltd. (THNX – proposed) is a Dublin-based provider of a cloud-based, social recognition software solution that helps big corporations provide rewards for their employees. (For more information, please click here: Globoforce)
- Paylocity Holding (PCTY – proposed) is an Arlington Heights, Illinois-based provider of cloud-based payroll and human capital management software solutions for medium-sized organizations. (For more information, please click here: Paylocity Holding)
- Q2 Holdings (QTWO – proposed) is an Austin, Texas-based provider of secure cloud-based virtual banking solutions. (For more information, please click here: Q2 Holdings)
Designer Drugs
This brings us to the biotech/biopharma sector.
If you are looking for a bubble, this sector could be it. Since November, 29 of the 92 IPOs that have been priced were biotech/biopharma offerings. Their scorecard has been great. As of Friday’s close, 23 were in the winner’s circle, six were losers, and the average gain for all 29 was 71.9 percent. This week has three:
- Akebia Therapeutics (AKBA – proposed) is a Cambridge, Massachusetts-based biopharmaceutical company focusing on therapeutics based on HIF biology and the commercialization of these products for patients with kidney disease. (For more information, please click here: Akebia Therapeutics)
- MediWound (MDWD – proposed) is an Israeli-based biopharmaceutical company developing products to treat severe burns, chronic and other hard-to-heal wounds and connective tissue disorders. (For more information, please click here: MediWound Ltd.)
- Versartis (VSAR – proposed) is a Redwood City, California-based biopharmaceutical company developing long-acting recombinant human growth hormone, VRS-317, for growth hormone deficiency, an orphan disease. (For more information, please click here: Versartis)
Candy, Anyone?
There are another five deals on next week’s IPO calendar. The headliner is King Digital Entertainment plc (KING – proposed) and its Candy Crush Saga game.
Stay tuned.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.