Following an active first quarter and the second busiest April for pricings in a decade, the mismanaged Facebook offering and heightened market volatility led to an abrupt, month-long shutdown in the US IPO market. US IPO deal flow fell 33% year-over-year, and, excluding Facebook, proceeds dropped nearly 50%. Post-IPO performance was negative, echoing the broader equity markets. However, despite the slowdown in activity, overall performance was positive, up 7%. The best performers were small cap technology growth stories, including “big data” companies Splunk (SPLK: +56%), Infoblox (BLOX: +37%) and Proofpoint (PFPT: +30%). Performance was helped by above-average IPO discounting as nearly half the deals priced below the range. As the quarter ended, the IPO market picked up again with four deals pricing in the last week of June.
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