Since the Facebook (NASDAQ:FB) IPO, the U.S. markets have seen no new initial public offerings. But this week, five deals are on the calendar. However, most look fairly lackluster.
One of the deals planned is EQT Midstream Partners (NYSE:EQM). The company operates pipelines for natural gas, primarily in the Appalachian Basin. Interestingly enough, EQT may actually get traction. The company’s business is stable and has high barriers to entry. Besides, it will be attractive for investors looking for a dividend yield.
Yet some of the other IPOs look iffy. For example, Tesaro (NASDAQ:TSRO) is a biotech company that’s developing drugs to deal with the after-effects of chemotherapy. However, such deals have had a tough time over the past year. Plus, Tesaro’s revenues are zero.
Then there’s Loyalty Alliance Enterprise (NASDAQ:LAEC), which focuses on mobile marketing in China. While it’s an interesting market, investors have been mostly cold to companies based in China.
Rather, the most attractive upcoming IPOs is ServiceNow (NYSE:NOW). The company delivers cloud-based software for managing IT operations. The technology has become a disruptive force in the market against such incumbents as Hewlett-Packard (NYSE:HPQ) and BMC (NYSE:BMC).
In the first quarter of 2011, ServiceNow’s revenues spiked by 88% to $47.4 million, and its total customer count is over 1,000.
Going forward, ServiceNow is likely to generate losses, but this shouldn’t be a problem. The company wants to focus on the huge growth opportunity ahead. According to Gartner, the market is currently about $13.6 billion and is expected to reach $19.8 billion by 2016.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of the upcoming book How to Create the Next Facebook: Seeing Your Startup Through, from Idea to IPO. Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.