Internet and Tech Stocks Drive First Quarter 2000 IPO Market

Internet and Tech Stocks Drive First Quarter 2000 IPO Market

Publications
Initial public offerings by Internet-related companies continued to dominate the new-issues market in the first quarter of 2000:
  • 86 Internet-related IPOs raised $10.18 billion in the first quarter of 2000, compared to 26 Internet-related IPOs raising $2.07 billion in the first quarter of 1999.
  • Internet-related IPOs represented 60% of the total number of IPOs in the first quarter of 2000, compared to 37% of IPOs in the first quarter of 1999.
  • The average Internet-related IPO ended the quarter 60% above its offering price, compared to an average appreciation during the quarter for non-Internet related IPOs of 51%; the Nasdaq Composite was up 12% in the first quarter of 2000 and the Dow decreased 5% for the quarter.
  • The average Internet-related IPO closed 112% above its offering price on its opening day, compared to an average first-day gain of 64% for other IPOs.
  • Of the 30 largest first-day gains in IPO history, 8 occurred during the first quarter of 2000, and nearly all were Internet-related IPOs.

We have just published a review of first quarter 2000 IPOs which includes discussions of:
trends and observations in the first quarter;
  • monthly data on Internet-company and other IPOs;
  • winners and losers in the aftermarket;
  • the surge in foreign issuer IPOs, including the largest global technology IPO in history (Infineon - raising $5.23 billion);
  • regional differences in IPOs;
  • the leading managing underwriters and law firms handling IPOs; and
  • an outlook for the balance of 2000, including the impact of the market turbulence and price corrections for technology stocks in the first half of April.

Click here to read the article. If you have any questions about this article, feel free to contact its authors David Westenberg (617-526-6626, david.westenberg@haledorr.com), or Timothy Gallagher (617-526-5605, timothy.gallagher@haledorr.com).

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