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."