EQT’s deal was priced at $21, at the top of the expected $19-to-$21 range. And so far in today’s trading, the shares are up almost 13%.
All in all, EQT is a solid operator. The company produces healthy cash flows, which means the dividend yield is attractive — currently about 6%.
Is this a sign that the IPO market is back on track?
Not necessarily. Facebook took a toll on the market, especially for early-stage tech deals. Most likely, IPO dealmaking will not achieve momentum until the fall.
Meanwhile, at the end of this week, ServiceNow plans to go public. The company is a top operator in the cloud-computing space — its revenues grew a sizzling 88% in the first quarter.
The deal will no doubt be an important barometer for the risk appetite of IPO investors. The good news is that the ServiceNow offering looks as though it’s attracting lots of demand.
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.