This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: Tech IPOs Shake-off Facebook Hangover

Stocks in this article: FB GOOG MRIN

NEW YORK ( TheDeal) -- Technology offerings have fallen in number and volume since Facebook Inc. (FB)'s $16 billion markets debut in May 2012 as companies and institutional investors slumbered through social media's mess of a coming-out party.

Now, four months into 2013, the tech sector seems thirsty for some new magical elixir, or perhaps a nip of hair of the dog from last year. Year-to-date, six U.S. technology IPOs have raised $965.6 million, according to data from Dealogic. Of those, one tech IPO raised $96.6 million in the second quarter and five tech deals raised $869 million in the first quarter. In the first quarter of 2012, 12 tech IPOs raised $1.28 billion.

The biggest tech IPO of the year was phone conference services provider West Corp.'s $425.5 million deal on March 21, followed by ad-tracker Marin Software's $120.8 million deal the same day, enterprise software developer Model N Inc.'s $120.1 million deal March 19 and enterprise software developer Rally Software Development's $96.7 million deal April 11.

Techs represented a paltry 10% of the total IPO volume in the first quarter and only 14% of the number of deals. That compared with 22% of the volume and 31% of the number of deals in the first quarter of 2012.

The share of tech IPOs also was lower than in the fourth quarter when tech IPOs accounted for 14% of the volume and 16% of the deals. The shares were the lowest since the third quarter of 2011 when tech accounted for only 5% of volume and 14% of deals. "It's not a reflection of a lack of appetite from institutional investors," said Charles Mather, the head of equity capital markets at investment bank Janney Capital Markets in New York. "In the second half of March, a lot of deals actually got done. It's more a reluctance of issuers, because of a hangover from the Facebook IPO."

Mather said he is optimistic that IPOs in general and tech IPOs in particular will make a comeback in the rest of 2013 because "the performance of the deals that have been done has been strong."

1 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs