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Tech IPO Offensive, M&A Retreat: Deals to Watch

NEW YORK ( TheStreet) - On the heels of Ubiquiti Networks' (UBNT) initial public offering Thursday, Zynga (ZNGA) is pushing ahead with its $1 billion listing, this time on the Nasdaq.

It's a sign that the past month's hyper volatility in markets hasn't entirely discouraged companies from going public. When the IPO happens it's expected to be one of the biggest of the year, and one of less than a dozen that's been announced at a size of $1 billion or more in 2011.

The online gaming and virtual goods seller, most popular for its Zynga Poker, FarmVille, Mafia Wars and CityVille games looks to be trying to catch a wave of both improved market conditions and prospects within the company. This week it announced a new product called Project Z, which will allow it to build an independent presence from its partnership with Facebook, the social networking site where millions of users play Zynga games.

According to a regulatory filing with the Securities and Exchanges Commission yesterday, Zynga also nearly doubled the number of patents it holds. According to the filing, the company's revenue has nearly doubled in the first 6 months of the year to $522 million, but its loss has expanded to $31.4 million.

Ubiquiti, the broadband wireless network infrastructure provider to remote areas sold just over 7 million shares at $15 apiece, according to Bloomberg data. In the weeks leading to its first day of trading, Ubiquiti cut its price expectations from over $20 a share to a range to $15 to $17. It was the first IPO since Sep. 1 when real estate investment trust American Realty Capital (ARCP) sold just over 5.5 million shares for $12.50 a share.

According to quarterly data from Dealogic, Global IPO activity has totaled $142.5 billion so far in 2011, down 8% from last year's equivalent total. The third-quarter contribution of $27.6 billion was the worst since the second quarter of 2009 when the economy was emerging from the worst recession since the Great Depression. Fearful of volatile stock markets and the low valuations investors are willing to pay for shares, companies pulled 221 offerings to go public in the first 9 months of the year, the highest number of withdrawn or postponed IPOs since 2008 when the global economy hung on the precipice.
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