LINE (LN), the popular Japanese messaging platform, popped 27% on Thursday after raising $1.15
billion in the largest US tech IPO since Alibaba in September 2014. While tech IPO activity still remains
well below historical levels, LINE’s IPO is the latest positive data point from the sector. The past ten tech
IPOs finished Thursday with a positive return from their IPO prices, with the group averaging +52%.
Furthermore, the prior four tech IPOs of 2016 have positive aftermarket returns. Two fast-growing VC-backed tech IPOs from earlier this year are leading the pack: API provider Twilio (TWLO; +178%) and optical network components maker Acacia Communications (ACIA; +128%). The recent outperformance from tech IPOs suggests that investor demand is healthy, provided that issuers come to market at a reasonable price.
| Last 10 tech IPOs | ||||||
| Company |
Ticker | Country | IPO Date | Deal Size ($mm) |
First day return |
Return at 7/14 |
| LINE | LN | Japan | 7/14/16 | $1,149 | +27% | +27% |
| Twilio | TWLO | US | 6/23/16 | $150 | +92% | +178% |
| China Online Education | COE | China | 6/10/16 |
$46 | 0% | +4% |
| Acacia Communications | ACIA | US | 5/13/16 | $104 | +35% | +128% |
| SecureWorks | SCWX | US | 4/22/16 | $112 | 0% | +6% |
| Yirendai | YRD | China | 12/18/15 | $75 | -9% | +82% |
| Atlassian | TEAM | Australia | 12/10/15 | $462 | +32% | +30% |
| Match Group | MTCH | US | 11/19/15 | $400 | +23% | +31% |
| Mimecast | MIME | UK | 11/19/15 | $78 | +1% | +1% |
| Instructure | INST | US | 11/13/15 | $70 | +13% | +29% |
