Tableau Software, a Seattle-based data-analytics software company, looked at 24 technology IPOs that have listed on U.S. exchanges so far in 2011 and found that, as a group, they are significantly underperforming other sectors. Tech IPOs are on average trading 11.5% below their offering prices, while compared with a 5% decline in business and financial services IPOs, a 7% decline in real estate IPOs and a 8% decline in industrial and consumer product IPOs.
Many IPOs are down from their offering prices because most went public in the first half of the year, before a summer swoon brought nearly all stock prices down (since mid-July, the S&P 500 Index has dropped 14%). But even so, tech IPOs are being hit especially hard. Only IPOs in the energy industry, which are down an aggregate 12% from their offering prices, have performed more poorly than tech.
Only a third of the 24 tech IPOs Tableau tracked closed Monday above their offering prices, led by social network LinkedIn (LNKD), up 84%; business-software maker ServiceSource International (SREV), up 61%; and web-security company Qihoo 360 Technology (QIHU), up 49%. Those gains are comparable to the better performing IPOs in other industries: CVR Partners (UAN), a fertilizer company, is up 55% and cancer-drug developer Endocyte (ECYT) is up 80%.
But viewed from a different angle, tech performance isn't so stellar. LinkedIn and Qihoo saw their stock prices double on their first day of trading. LinkedIn is down 12% from its first-day closing price and Qihoo is down 37%. So many of the gains that were fleetingly available on the hottest tech IPOs evaporated quickly.Click here to visit the site
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.