IPO Outlook: Good for Tech
Bowie-based Inovalon Holdings was the first DC area tech firm to have an IPO this year, but it won’t be the last. BDO USA assurance managing partner Mark Ellenbogen, who runs the firm’s audit practice in Bethesda, says investment bankers are predicting more IPOs nationally in 2015 than last year, with a big piece of the pie coming from the tech sector. There’s increased confidence in the US economy, interest rates are low, and IPOs have done well. The DC region has seen its share of successful recent IPOs like Cvent 2U, and Opower. Inovalon, a cloud-based healthcare data analytics company, raised $600M and saw its stock rally 23% after trading began last Thursday.
So who’s next? Since companies can keep their IPO plans pretty quiet by taking advantage of confidential filing provisions in the Jobs Act, all we’re left with are signs. Mark says a few he’s seen are Appian, whose CEO Matt Calkins (above), has been talking publicly about plans for an IPO; Tenable Network Security and Vistronix recently hired new CFOs with IPO experience. Other sectors will also see some increased IPO activity this year, according to BDO’s survey of investment banks. The leaders include biotech, healthcare and industrial/manufacturing.