Number of IPOs increase in September-quarter, technology sector in lead

The technology sector is doing everything to revive the Initial Public Offering market in the US. The latest data shows that the concentration of IPO is more in the technology sector, breathing life into the stock market. Eight technology companies went public in the third quarter ended September 30.

Both financial and technology sector had eight companies that started stock operations in Q3. The second best was consumer sector with 6 companies going public.

According to the report published by PwC on Tuesday, 29 companies IPOed this quarter, which was higher than the 21 that started stock operations in the year-earlier quarter. However, the number missed by two from the last second quarter.

The report from NVCA report issued Monday by Dow Jones Venture Source had the same results. Both reports concurred to the findings that 2012 is leading ahead of last year in IPO proceedings but is trailing behind in the number of IPOs by two. However, that might change in the next quarter.

The most successful IPO in the technology market was Service Now’s. The company is up 115 percent from its face value since the initial offering.

The next in line is Palo Alto Networks, which rose 46.5 percent since IPO. Internet-based real estate firm Trulia, also included in the technology business, was up 26 percent from its initial price. On the whole, all the companies who took to the stock market this year were 26 percent above the initial prices on average.

Overall, 29 IPO this year have raised $6.6 Billion, out of which 58 percent of the earnings belonged to financial firms while tech companies made 13 percent.

Among companies backed by venture capital firms, typically tech startups, there were 10 IPOs that raised $1.1 billion, according to the National Venture Capital Association.

Moreover, 38 companies registered with Security and Exchange Commission in September quarter to make their IPOs. That is six more than the second quarter this year.

Short URL: https://www.newspakistan.pk/?p=33608

Posted by Usman Khalid on Oct 3 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.