Meet Today's Hot IPOs
Today was apparently a good day to go public.
Three companies made their exchange debuts today with impressive success.
- Demandware (NYS: DWRE) , a provider of cloud-based enterprise software, priced its IPO at $16 last night, well above the earlier range of $12.50 to $14.50.
- M/A-Com Technology Solutions (NAS: MTSI) , a maker of analog chip products, priced at the top of its $17 to $19 range.
- Allison Transmission (NYS: ALSN) -- a manufacturer of vehicle transmissions, naturally -- was expected to price between $22 and $24 before settling on $23.
February was a good month for IPOs, and the favorable momentum continues. Not only is the pipeline of new issues oozing out at a steady drip, but investors are hungrily waiting with portfolios wide open.
Allison opened exactly at its $23 IPO price, but the other two debutantes opened yet higher. M/A-Com's first trade today clocked in at $21. Demandware is the real pop star, though. The provider of data management solutions for e-commerce was looking to hit the market as low as $12.50 earlier this month before pricing at $16. It opened at $25.25.
It only helps that cloud computing continues to be a hot industry. Companies are turning to server-stored enterprise solutions as both cost-effective and flexible options.
Demandware is growing quickly. Revenue climbed 54% to $56.5 million last year, but it did not turn a profit.
Then again, these are the new kids. They're not supposed to be perfect.
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