5 Tech IPOs to Watch for in 2013
NEW YORK (TheStreet) -- The initial public offering market has come on strong in 2013 with 30 companies going public in the first quarter raising more than $7 billion. The number of IPOs has dropped 9%, but the total amount of proceeds raised is up 56% in 2013 over 2012. Surprisingly the dominant sector has been the real estate market demonstrating recovery in the housing market, but the technology group looks to be coming back to life.
"There have already been far more IPOs than we anticipated in 2013. I think we are finally seeing a level of confidence return to the markets after a tumultuous few months following the U.S. Election and the fiscal cliff," said Herb Engert, Strategic Growth Markets Practice Leader for Ernst & Young. There are 99 IPOs currently in the pipeline, and real estate continues to dominate with 18 companies registered compared to 11 in technology.
Confidential filing has limited the transparency of the IPO pipeline. However, something to keep in mind is that there are currently 472 venture-capital and private-equity backed tech companies. Not all of the companies will make it to becoming a public company, but it does give an idea of the backup in the pipeline. Some have barely hit eight figures, while others are in the billions like Palantir and Coupons.com.
Since 2010, 32 to 35 tech companies typically go public each year. A far cry from the 275 in the tech bubble year of 2000, but maybe this will be the breakout year. Many of these companies were acquired in 2006 to 2007 and it is time to initiate the exit strategies.
In the near term, expect offerings from CDW, an integrated IT solutions company hoping to raise $500 million and cloud company Rally Software looking for $70 million. Over the course of the year, investors could be thrilled by the following tech companies expected to go public and while they may not garner the frenzy that Facebook did, some will be exciting nevertheless. Some of the most anticipated tech IPOs for 2013 include Airbnb, Dropbox, Box, Airbnb, Eventbrite and Square.