Winter In July
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The pace is slowing slightly for Internet IPOs this month, but the average first-day return could be higher than any since January, thanks to several big debuts and no real misfires (yet).
TIBCO Software's initial public offering on Wednesday is the 10th Internet IPO this month. Given that we're almost half-way through July, it's not likely that the record of 32 Internet IPOs set in June will be broken, and we may not even equal the second-busiest month, May, when 26 offerings were made.
July's moonshot rate, however, is the highest since January, when all four Internet IPOs closed on the first day of trading at twice the offer price or more. So far four out of the nine July 'Net offerings through Tuesday looked like the rocket blasts to which the market had grown accustomed early in the year. This month's debut average of 140% above the offer price is eclipsed only by January's 241%.
Equally significant in terms of measuring the market's confidence in Internet IPOs is the fact that no 'Net offering has flat-lined in July. The poorest first-day performance so far has come from CommTouch Software, which saw its stock price close at "only" 50% above the $16 offer price on Wednesday, and which was overshadowed by China.com's IPO.
China.com's IPO did more than roar above Wall Street Tuesday like a powerful missile built with technology stolen from the U.S. It also became the 200th company to join internet.com's InternetStockList and Internet StockTracker subscription newsletter.
Since debuting in March with 116 companies, InternetStockList has grown 72% and is the largest list of publicly traded Internet companies available online.
If you haven't checked out the list, it provides historical information on Internet IPOs, as well as links to current quotes and the latest SEC filings.
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