Tech IPO in the past turned out to be very disappointing investment and this is why most people approach them with a lot of caution. This may be why in the past tech investments have not been the way to go.
However, it is very possible for tech IPO to gain investor confidence again. There are 3 major tech IPO of 2014 that are worth taking a look at; the Zoopla IPO, the Weibo IPO and the Just eat IPO. These are the 3 main tech IPO that are going in the right direction regardless of low faith from market commentators.
Major Tech IPO in 2014
Zoopla has been on the FTSE for a while now. Its initial Tech IPO had a healthy start but was a little below the £1bn mark that most people expected; but, at £960.5m is okay. Unlike most of the IPOs of this year, Zoopla has been able to maintain the 230p mark and have not yet fallen below the lower limit of 200p that was set by Zoopla before the listing. Zoopla’s performance on the FTSE has been steady so far which can be a good encouragement for investors. Zoopla has not had too much trouble in turning its stronger user base into revenue; this is in comparison to other tech IPOs and tech ventures. It stood at 26 percent for the six months leading up to March 2014.
Weibo’s IPO had a rocky start after launching its IPO on 17th of April with a share price of between$16 and $24. So far, the company has not dropped below its initial worth but rather has been steadily climbing to gain an opening cost of more than $21 on 2ndJuly. Just Eat IPO share price jumped 9 % on the first day of trading, thanks to the flurry of excitement. After that, this trend was not seen for long as Just Eat stock was seen to drop to below 200p which was way below the previous highs of 280p that were recorded in May. After the drop however, Just Eat stock has steadily grown and is currently at the 253p level and so is worth keeping an eye on.
Investing in tech IPOs can still be a viable option if you look at the trend that these three IPOs of 2014 have exhibited. This is a clear indication that it is possible to invest in technological innovations. For instance, all these tech IPOs have shown that going in for gains early will not necessarily yield results. It is therefore very important to assess a company’s true value before you decide to invest in it.
GoDaddy - Tech IPO
GoDaddy has made its appearance after company raised more than expected initial public offering $460 million. In New York company's shares raised 31 % to $26.15 and sold 23 million shares at $20 each. Although, market value of company is more than $3 billion. Private-Equity firms KKR & Co., Silver Lake Management and Technology Crossover Ventures has invested $859 million in equity purchase. Last year Company's sales jumped 23% to $1.30 billion last year, therefore net loss was $143 million.