After Post-Facebook Drought, 4 IPOs Set for This Week
The IPO market is finally showing signs of life after Facebook.
This week, four companies will end the IPO hiatus that followed Facebook’s disappointing debut on May 18, The Wall Street Journal reports.
The four companies with scheduled launches: cloud-based computer-services provider ServiceNow Inc., energy partnership EQT Midstream Partners LP, software firm Exa Corp., and biopharmaceutical firm Tesaro Inc.
EQT Midstream will go public first, and wants to sell $263 million on the New York Stock Exchange, listed as "EQM." Also on the NYSE will be the debut of ServiceNow, which is seeking to raise $198 million under the symbol “NOW”; this is considered the strongest, the paper reports, due to year-to-year revenue increases of 90%, high customer retention, and a focus on cloud-based services.
Both Exa Corp and Tesaro will launch on Nasdaq, aiming for $81 million as "EXA," and $90 million as "TSRO," respectively.
Are investors hungrier now for new offerings? This week's action will show--but the Journal cites data from Renaissance Capital, an IPO research firm, showing a first-day return of 20% for such “icebreaker” IPO launches, compared with an 11% norm.