) gained 41% on its first day of trading and represents the
first of 11 technology IPOs scheduled for the next two weeks.
Five more are expected this week and another five are
on the calendar
for next week. Only two tech companies debuted in January
and February (CRCM, VRNS), but March's 13 should make it the most
active month for tech IPOs since 2000.
The week's five remaining software-based IPOs include Q2 Holdings
), a SaaS that enables online banking for local branches. Amber
) provides cloud-based global trade management software, while
) helps US retailers establish international e-commerce. A10
) produces software-based appliances that optimize data center
performance. Globoforce (THNX) lets companies better recognize
employees by offering gift cards for their achievements. However,
the year's largest tech deal will be next week's King Digital
(KING), the Candy Crush developer looking to raise $500 million.
As we noted
in this week's recap
, several of these software products are used by a company's
human resources, but next week's TriNet (TNET) outsources the HR
The pipeline of tech IPOs will have several highly anticipated
deals even after March's deluge. These include major consumer
companies like GrubHub (GRUB) and Travelocity-owner Sabre (SABR).
Chinese Internet filers include Weibo, Leju and JD.com. Alibaba,
another Chinese Internet company that could be the year's largest
IPO, recently announced it would list in New York. With some
analysts valuing the company as high as $140 billion and
expecting it to raise $15 to $18 billion, it is possible that
Alibaba's IPO will raise more proceeds than
all Chinese IPOs in the last 8 years
The upcoming tech offerings are no doubt encouraged by the
market's exuberance for the sector this year. After Paylocity's
trading today, the five tech IPOs of 2014 have averaged
a first day pop of 84%. However, the sector's average post-IPO
performance has been -9%, driven by Castlight (CSLT) and Care.com
trading down 21% and 23%, respectively, since their opening days.
Despite being negative in the aftermarket, total returns for tech
IPOs are 66%.