Baird Global expert says many factors will influence growth in IPO tech sector
As the Initial Public Offering (IPO) market in the technology sector continues to make a turnaround in 2018, Baird Global Investment Banking's managing director for its Equity Capital Markets team recently weighed in on this year's IPO activity.
On its recent blog post, Macie House published a question-and-answer session evaluating whether the IPO market will continue to heat up, highlighting several factors that will effect the IPO cycle.
"IPO activity is off to a strong start in 2018, with volume up 30 percent compared to 2017," House said in the online article. "At present, we’re seeing the backlog continue to build for the latter half of the year and into early 2019. Fundamentals remain intact: nearly 90 percent of technology companies beat sales estimates in Q4 2017 and many subsequently raised forward looking estimates. Q1 2018 earnings results thus far have also been supportive," she said.
House also explained in the article that the availability of private capital and the recently passed Jobs Act legislation are among the factors that will impact the IPO market.
"Going forward, the IPO market will be dependent on a number of factors – first and foremost, strength in the broader equity markets and low volatility," she said.