The 10 Biggest Tech IPOs of 2018: Winners and Losers

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top-performing tech issue, Zscaler, lost a quarter of its value in just two weeks in November before recovering most of that ground.” data-reactid=”11″>Technology continues to rule the IPO market, with 36 of the 184 offerings this year coming from that sector. Because the rout in the stock market since Oct. 1 has caused the indexes to tumble almost 20%, the valuations of tech IPOs have also been savaged; even the top-performing tech issue, Zscaler, lost a quarter of its value in just two weeks in November before recovering most of that ground.

The biggest tech IPOs in 2018 (by funds raised) largely haven’t appreciated as much as some of the smaller issues which came to market. The top 10 are listed below in the order of their offering size; returns are calculated from each company’s offering date:

Company

Offer Amount

Offer Price

Recent Price

% Change

Pinduoduo (NASDAQ: PDD)

$1.6 billion

$19

$21.30

12.1%

Dropbox (NASDAQ: DBX)

$756 million

$21

$19.75

-6%

Docusign

$629 million

$29

$37.48

29.2%

Pivotal Software

$555 million

$15

$14.99

0%

Bilibili

$483 million

$11.50

$13.71

19.2%

Ceridian HCM (NYSE: CDAY)

$462 million

$22

$31.97

45.3%

SolarWinds (NYSE: SWI)

$375 million

$15

$12.35

-17.7%

Pluralsight

$311 million

$15

$19.01

26.7%

Anaplan

$264 million

$17

$24.41

43.6%

Elastic (NYSE: ESTC)

$252 million

$36

$62.87

74.6%

The least shall be first

Ceridian HCM has turned in the second-best performance with a better than 45% return since going public. The self-described “human capital management” firm is another behind-the-scenes player which handles payroll for the top businesses in the gig economy. That’s key because making funds available almost immediately for independent contractors is an important component in these types of businesses.

Stacks of coins with IPO on top

Image source: Getty Images.

On the outs

few that actually relate to its business. Other than reports that investors such as George Soros and hedge fund Jana Partners sold all their shares, the business remains sound. And it’s a cash-generating operation, producing $329 million over the last 12 months. As a result, Dropbox — unlike some other tech IPOs — won’t need to raise money soon from external sources.” data-reactid=”33″>The other big tech IPO that finds itself in negative territory is cloud storage leader Dropbox. Like much of the market, Dropbox has been buffeted by external worries, but by few that actually relate to its business. Other than reports that investors such as George Soros and hedge fund Jana Partners sold all their shares, the business remains sound. And it’s a cash-generating operation, producing $329 million over the last 12 months. As a result, Dropbox — unlike some other tech IPOs — won’t need to raise money soon from external sources.

Tech reminders

Tech stocks tend to be more volatile than businesses in more-staid industries, and because the sector had a big run-up before the market meltdown, it’s not unexpected that it will bear a large part of the pain.

That doesn’t make the individual tech stocks that went public in 2018 a bad bet. But it suggests that investors should use caution as the sharp dips and rebounds we saw in December may become more common, sending these issues whipsawing to the whims of the market.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends JD.com and Match Group. The Motley Fool recommends Accenture, Bilibili, and DocuSign. The Motley Fool has a disclosure policy.” data-reactid=”49″>Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends JD.com and Match Group. The Motley Fool recommends Accenture, Bilibili, and DocuSign. The Motley Fool has a disclosure policy.