The dearth of IPOs — there have only been 75 this year, half the amount for this time last year — has been offset by some positive news: the average IPO is outperforming — those 75 IPOs are up an average of 41 percent, and 83 percent are trading above their IPO price, according to Renaissance Capital.
Recent IPOs have done very well.
Nutanix's IPO Friday was the best performer of the year, and others including Novan, Trade Desk, elf Beauty and Apptio, have also done well.
- Nutanix: up 131.3 percent
- Novan: up 83.5 percent
- Trade Desk: up 62.3 percent
- e.l.f. Beauty: up 65.4 percent
- Apptio: up 35.6 percent
- Valvoline: up 6.8 percent
This week's offerings include Coupa Software, a cloud-based spending management platform that connects businesses with suppliers.
What's down the road? The success of Nutanix may encourage some other smaller unicorns to go public. You should be seeing a lot of tech. Carbon Black, which makes makes anti-virus software to prevent cyber attacks, has reportedly filled for an IPO confidentially, but that may or may not mean they're going public any time soon.
BlackLine, a financial reporting subscription service, just filed for a $100 million IPO. The roadshow should start in a couple weeks.
Other potential unicorns that have a shot going public include Blue Apron, they make package ingredients for home meal preparation, AppNexus, an adtech bidding platform similar to The Trade Desk. There's also Apttus, a quote-to-cash platform — they cover the business process for creating a quote for a customer, then do the invoicing. Then there's Forescout — which does enterprise network access — monitors devices connected to your system.
All of this, of course, depends on how the markets hold up in what is traditionally the most volatile month of the year. One impetus to go public is the relatively small window for IPOs — they traditionally slow down around presidential elections.
Correction: Apttus, a quote-to-cash platform, is the company mentioned here with a shot at going public. An earlier version misspelled Apttus.