11. The Age of Easy Money is Over?
• Of the 87 tech IPOs in 2014-2015, about 80 percent are under their
IPO price!
• The biggest IPO of 2015, payments tech co First Data Corp, fell 21%
Wednesday last week, closing on Friday at $9.44, a 41% drop from its
IPO price
• Hortonworks, a Big data company, just tried to sell shares at $16.57 in
a follow-on offer and ended up getting only enough demand to price
at $9.50. Against a $16 IPO price, Its shares ended Friday at $8.43
• Good Technology, a mobile security company once valued at $1
billion, last year sold to Blackberry for $425 million - had earlier
planned an IPO but that never got beyond the drawing board.
12. So what about this year?
• No IPO has happened for any technology company so far this year.
None have even priced. January marked the first month since
September 2011 without an IPO of any kind
• IPO advisers tell you: don’t go public when the VIX (volatility index -
measures the market's expectation of price volatility) is above 20
• The index has closed above 20 every day except two days so far this
year (in the whole of last year, it only closed above that level 42
times).