{"id":3817,"date":"2017-03-01T21:42:35","date_gmt":"2017-03-01T21:42:35","guid":{"rendered":"https:\/\/www.rsoftsolution.com\/blog\/could-snapchat-lead-to-more-tech-ipos.html"},"modified":"2017-03-01T21:42:35","modified_gmt":"2017-03-01T21:42:35","slug":"could-snapchat-lead-to-more-tech-ipos","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/could-snapchat-lead-to-more-tech-ipos.html","title":{"rendered":"Could Snapchat lead to more tech IPOs?"},"content":{"rendered":"


\n<\/p>\n

When Snap prices its IPO after the closing bell today, it will be the first tech company to go public this year. It will also be the largest tech company to go public in the U.S. since Alibaba debuted in 2014. <\/span><\/p>\n

Because of the <\/span>dearth of recent tech offerings<\/span><\/a>, all eyes will be on the Snapchat parent to see what it means for the \u201cIPO window.\u201d The performance of large tech offerings are often considered bellwethers for other pipeline companies, because it is what investment bankers use to gauge investor appetite.<\/span><\/p>\n

\u201cIf the IPO goes badly, that\u2019s a catastrophe,\u201d said Barrett Daniels, CEO of Nextstep Advisory Services. He believes that if Snapchat stock disappoints investors in the coming days, that it will be a negative indicator for other companies looking to join the stock market.<\/p>\n

Applications management company AppDynamics was supposed to kick off the year for tech IPOs in its planned January listing, but wound up getting <\/span>acquired by Cisco in the 11th hour.<\/span><\/a> \u00a0Although the company did not go public, strong interest on the roadshow suggested that large institutional investors were willing to add to their portfolios of tech stock.<\/span><\/p>\n

AppDynamics and Snapchat are of course, extremely different companies, despite being under the broader category of \u201ctechnology.\u201d Some experts think that future IPOs should focus their attention on either the \u201cconsumer tech\u201d or \u201centerprise tech\u201d categories, sub-industries that are still quite broad.<\/p>\n

\u201c<\/span>Snapchat is relevant for other huge consumer focused transactions but won\u2019t have impact one way or the other on most potential IPOs,\u201d predicted Lise Buyer, an IPO consultant and partner at Class V Group. With mega-valued companies like Airbnb and Dropbox still awaiting to go public, she feels that some those larger companies might be taking note. \u201cThe other behemoth private companies are very likely paying close attention.\u201d<\/span><\/p>\n

Yet because the few tech IPOs that debuted last year performed favorably, Buyer believes \u201c<\/span>the window is wide open already. The problem is a lack \u00a0is a profound lack of supply, not demand,\u201d she said.<\/span><\/p>\n

Ultimately, Snapchat\u2019s first day of trading will have a lot to do with how the bankers price the offering. At the projected price range of $14 to $16 per share, reports suggest that the IPO will be \u201c<\/span>oversubscribed.\u201d<\/span><\/a><\/p>\n

<\/p>\n

Featured Image: Michael Nagle\/Bloomberg via Getty Images<\/small><\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunch\/social\/~3\/_aSzc3u-tUA\/<\/p>","protected":false},"excerpt":{"rendered":"

When Snap prices its IPO after the closing bell today, it will be the first tech company to go public this year. It will also be the largest tech company <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3],"tags":[10,7,14,15,6,12,11],"class_list":["post-3817","post","type-post","status-publish","format-standard","hentry","category-latest-update","tag-computer-news","tag-downloads","tag-microsoft-download-news","tag-networking-updates","tag-technology-update","tag-wordpress-plugin-download","tag-wordpress-theme-download"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t