The IPO market could be coming back in the US if yesterday’s successful IPO of software company LogMeIn is any guide.
LogMeIn raised over $100m on the Nasdaq this week. The shares were priced at $16 and ended the first day’s trading day, yesterday, slightly above $20.
LogMeIn of Massachusetts is a software company which has five per cent of its shares held by Intel. It recorded its first quarter of profitability in Q1 2009.
The company provides software that enables users to set up private, remote networks. It has a 'shredding' service which includes a device installed on a notebook PC which tracks the PC and can encrypt or delete data remotely. Revenue to the end of March was $17.2 million.
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Europe could be set to raise £12 billion in IPOs over the next two years reckon City experts, while $12 billion has already been raised worldwide from IPOs during this year.
America is leading with 12 IPOs this year. Software company Rosetta Stone raised $129m earlier this year, and two other technology start-ups OpenTable and SolarWinds have seen their shares rise since IPOs earlier in the year.
While LogMeIn saw its shares jump 30% on the first day’s trading, before settling back to a 20% premium, OpenTable had 59.5% jump and Rosetta Stone had a 39.6% jump.
A return of the IPO market will be significant for some UK start-ups which are on the verge of profitability.