Global initial public offering (IPO) activity for technology companies has picked up following the back-to-school season, with September accounting for over 50% of the technology IPOs completed in the third quarter of 2013, according to a report issued by PricewaterhouseCoopers (PWC).
“Following the seasonal summer lull in July and August, the global technology IPO market rebounded strongly in September,” said Raman Chitkara, the global technology industry leader at PWC. “The fourth quarter has started on a positive note, with September momentum continuing into October.”
The number of IPOs did decline quarter on quarter, however, from 16 in Q2 2013 to 13 in Q3 2013.
“The decline seems to be consistent with historical patterns as many companies are reluctant to complete IPOs during the months of July and August due to perceived lower investor enthusiasm resulting from summer vacations, especially in Europe,” Chitkara said.
The “Global Technology IPO Review” report mentioned that software and internet services companies dominated the top 10 technology deal in Q3 2013, comprising 74% of the total proceeds.
In the United States the number and value of US IPOs increased year on year by 29% and 41% respectively, but decreased 25% and 49% respectively compared to Q2 2013.
“The strong IPO momentum coming out of the third quarter is primarily powered by the software sector, which continues to reign supreme both in terms of technology venture funding and technology IPOs,” said Bryan McLaughlin, Deals Partner at PWC US. “In a volatile market, IPO investors welcome enterprises that deliver growth and predictability, and software, particularly SaaS models, have the ability to deliver on that value proposition.”
Earlier this month, social networking giant Twitter launched for the first time 70m shares on the public market. The company released a statement stating the public price for each share is $26.