Market Overview

Secureworks Is The First Tech IPO In A Bone-Dry 2016 IPO Market

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Secureworks Is The First Tech IPO In A Bone-Dry 2016 IPO Market

The first technology IPO of 2016, Secureworks Corp (NASDAQ: SCWX) began trading today. After a brief dip below its IPO price of $14, Secureworks was trading up 4 percent in the morning session on Friday.

Incredibly, Secureworks is the first tech sector IPO of the year in what is becoming an increasingly dry IPO market. This time last year, there had already been six different tech IPOs.

The IPO market began tapering off in the second half of last year. The total number of IPOs fell to 170 in 2015, its lowest level in six years.

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This year is off to an even slower start, with Secureworks marking only the 13th IPO of 2016, according to Renaissance Capital. The total number of IPOs is down 70 percent, year-to-date.

Despite the major slowdown in IPO activity, there have been several big winners and big losers in the IPO market in the past year.

Seres Therapeutics Inc (NASDAQ: MCRB) (+69.9 percent), Aclaris Therapeutics Inc (NASDAQ: ACRS) (+80.0 percent) and Shopify Inc (NYSE: SHOP) (+85.2 percent) are three of the biggest IPO gainers.

On the other hand, TerraForm Global Inc (NASDAQ: GLBL) (-82.6 percent), HTG Molecular Diagnostics Inc (NASDAQ: HTGM) (-79.9 percent) and Jaguar Animal Health Inc (NASDAQ: JAGX) (-79.0 percent) are among the biggest recent IPO flops.

Disclosure: the author holds no position in the stocks mentioned.

 

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