Tech IPOs are red hot. How red hot? Try before-the-Internet-bubble-popped red hot.
The average one-month share-price gain for 2013 technology company IPOs is up to 39%, according to market tracker Dealogic. That’s the highest since 2000’s 71% average return and 1999’s so-insane-it-looks-like-a-misprint 142% gain.
And that’s not even counting the mid-September IPOs of FireEye (FEYE) and Rocket Fuel (FUEL), whose stock prices have both more than doubled, and BenefitFocus (BNFT), up 63%. Those three and a couple of other big gainers won’t hit their one-month anniversaries for two more weeks.
So far this year, Dealogic counts 26 tech IPOs put of 145 total companies going public. That's on par with the pace of the past few years, but nowhere near the levels recorded in the Internet bubble when 194 tech companies went public in 2000.
The euphoric reception for money-losing tech companies should guarantee strong demand for social networking giant Twitter, expected to price its $1 billionRead More »from Tech IPO Market Partying Like It’s (Almost) 1999