Why have there been less IPOs this year and are there any hot names on the horizon? And, what about RetailMeNot?
Stocks are up and the NASDAQ is at near-decade highs. So, where are all the tech initial public offerings (IPOs)?
According to Dealogic, there have been $2.3 billion worth of tech IPOs this year, but that’s down from over $18 billion last year. Why is that and are there any hot names on the horizon?
We talk numbers with Katie Roof, multimedia reporter for such organizations as Reuters and TheStreet.com.
While there may be some companies that are ripe to go public, Roof believes we’ll see many delayed. Some of the names mentioned as possible IPOs are Gilt Groupe and LivingSocial. As well, Etsy and Square (Jack Dorsey of Twitter’s mobile payment company) are considered future candidates for an offering but they’re not jumping at it just yet.
“A lot of the big tech names just aren’t eager to go to the IPO route anymore,” says Roof. “They may be hoping for an attractive acquisition offer. But, sometimes their valuation is just too high. So, they have no choice but to IPO if they don’t an offer at that price.”
There is one company that is going that route this very morning: RetailMeNot. The company behind America’s largest coupon website is going public today, raising $191 million. That’s about twice the amount of a typical IPO of that nature. RetailMeNot already raised $300 million from venture capital and after today’s offering, the company is expected to have a market cap of over $1 billion.
Roof points out that there are many differences between RetailMeNot and Groupon. And, when it comes to financials, Roof gives a few reasons why RetailMeNot stands out.
To hear the three reasons there have been less IPOS according to Roof – and to get her insight on RetailMeNot’s big IPO – watch the video above.