Even with one month left to go, the first quarter of 2014 has already seen more IPOs than the first quarter of 2013 (37 vs. 31). YTD proceeds are 27% higher than last year, despite a 31% dip in average deal size. It does not appear that activity will slow down in March, either: the number of initial filings in January and February is the highest it has been in over a decade. The pipeline is packed with health care and tech companies, which together represent 67% of filings over the last 90 days. 2013 had an impressive run with the highest number of IPOs since 2000, but 2014 could outpace it if these trends continue.
| YTD IPOs and initial filings, 2013 & 2014* | |||
| 2013 | 2014 | % Change | |
| Filings | 21 | 55 | 162% |
| Offerings | 20 | 37 | 85% |
| Proceeds | $5.5B | $7.0B | 27% |
| Avg market cap at IPO | $1.4B | $0.9B | (38%) |
| Average first day pop | 13% | 16% | 300bps |
Check out our stats on IPO Filings, IPO Pricings, IPO Proceeds and IPO Returns.
The YTD Tech Snapshot
Health care companies represent 55% of IPOs to date (fueled by biotechs), but recent filings suggest that the technology sector is poised to pick up. While only three tech IPOs (Care.com (CRCM), Varonis (VRNS) and Coupons.com (COUP)) have launched in 2014, new offerings on the horizon have received considerable media attention, including King Digital, JD.com, GrubHub, The Rubicon Project and Castlight Health. SaaS and enterprise solutions represent the majority of companies in the IPO pipeline, with noteworthy advertising, mobile and ecommerce plays in the mix. Enterprise and consumer tech companies are no doubt encouraged by the performance of today's IPO, Varonis (up 100%), and Facebook's $19 billion purchase of WhatsApp. Most of the tech companies are riding a wave of high growth and now hope to scale up operations by accessing public funds.
| 2014 Tech IPO Filers: Internet, Consumer and Portal | |||
| Company | Application | Most Recent LTM Sales (mm) |
Most Recent
LTM Growth
|
| Coupons.com (COUP) | Coupons for retail goods | $168 | 50% |
| Everyday Health (EVDY) | Internet healthcare info | $156 | 13% |
| GrubHub (GRUB) | Restaurant orders | $137 | 67% |
| JD.com (JDC.RC) | Chinese online retail | $10,082 | 95% |
| King Digital (KING) | Mobile and social gaming | $1,884 | 1,046% |
| Sabre (SABR.RC) | Discount travel agency | $3,057 | 4% |
| Viggle (VGGL.RC) | Loyalty app for TV shows | $17 | 702% |
| 2014 Tech IPO Filers: Enterprise and Business | |||
| Company | Application | Most Recent LTM Sales (mm) |
Most Recent
LTM Growth
|
| 2U (TWOU) | Front-end education software | $83 | 49% |
| A10 Networks (ATEN) | Network speed and security | $142 | 18% |
| Aerohive Networks (HIVE) | Network wifi and security | $107 | 50% |
| Amber Road (AMBR) | Global trade support | $53 | 21% |
| Borderfree (BRDR) | Global ecommerce platform | $110 | 36% |
| Paylocity (PCTY) | Compensation benefits management | $91 | 40% |
| Q2 Holdings (QTWO) | Front-end banking software | $57 | 38% |
| Resonant (RESN) | Mobile bandwidth technology | $0 | n/a |
| Rimini Street (RMNI) | Enterprise software maintenance | $55 | 31% |
| The Rubicon Project (RUBI) | Automated ad marketplace | $75 | 54% |
