It’s been a long time since the high-tech IPO was alive and well – probably going back to the original dot-com boom in the late-1990s when just about any start-up with a sexy story could convince investors to participate.
Since then, however, the IPO market has been popular as a skunk at a picnic. Sure, there’s been the occasional public offering but the amount of activity has been trivial.
For whatever reason, there are indications that the high-tech IPO market may be rebounding, and could propelled by some high-profile companies. Facebook, for example, has created a dual-class share structure that could position itself for an IPO; Twitter co-founder Biz Stone told a conference earlier this week that an IPO is possible at some point, and LinkedIn CEO Reid Hoffman said his fast-growing social network could do an IPO, although not in the “near-term”.
In the scheme of things, talk about IPOs seems strange given global economic conditions are still fragile, and many companies are operating in survival mode. That said, the time is also ripe for stronger companies to capitalize by making aggressively strategic and financial moves at a time when rivals are struggling.
It also doesn’t hurt companies such as LinkedIn, Twitter and Facebook have strong growth, as well high profiles – a recipe that will seduce many retail investors.
Links: TechCrunch, The Deal