Selling the Solarwinds IPO
Contrarian Profits (May 22nd, 2009) Writes:
Could a new IPO mean that the market’s really on the way to a rebound?
This week, Solarwinds (NYSE: SWI) became the first venture capital-backed initial public offering (IPO) in more than nine months. That’s a significant event for those who watch the IPO market… it’s also significant for the rest of us – after all, IPOs can be a pretty good indicator of how the stock market is turning.
And in 2009, things haven’t been turning very fast…
In the first quarter of 2009, there were only two new IPO deals done globally; that’s compared to the 100 deals done in the first quarter of 2007. It wasn’t for a lack of eligible companies either: all told, 26 firms withdrew or postponed their initial public offerings this year. That’s no surprise given the global economic slowdown that started last year.
When companies are considering going public, how the market’s faring can
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