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IPOs in Q2: It Wasn’t Only About Facebook

Hard to recall, but several other notable IPOs occurred


In the second quarter, it seemed like Facebook (NASDAQ:FB) was the only IPO. While it certainly garnered tremendous buzz — across the globe — the deal turned out to be a dud. Even with FB’s recent rally, the stock is still off 14% from its offering price.

Yet, Facebook wasn’t the only story for the second quarter. If anything, the period had some interesting deals. The second quarter saw 24 transactions with an average return of 8.24%.

Among the group, the worst performer was PetroLogistics (NYSE:PDH), operator of the world’s largest propane dehydrogenation facilities. Unfortunately, the deal blew up, with a return of -38%. It was a tell-tale sign when 96% of the company’s insiders unloaded shares in the IPO.

Still, some deals paid off handsomely for investors. Take a look at Splunk (NASDAQ:SPLK). Since its IPO, the shares are up 66% to $27.92. It’s a top player in the hot Big Data market. That is, the company’s software helps analyze huge amounts of data to detect trends or problems. So far, Splunk’s technology has proven effective in helping with online security.

For the quarter ended April 30, Splunk posted revenues of $37.2 million, up by 80% over the past year. It added more than 350 customers, with a total over 4,000. It has big-name customers like Zynga (NASDAQ:ZNGA), Comcast (NASDAQ:CMCSA) and (NYSE:CRM).

Another hot IPO? Well, there was WageWorks (NASDAQ:WAGE). Since its offering, the shares are up a sizzling 77%. The company has a cloud-based platform to sell tax-advantaged programs for employee benefits. These include Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs) and  Health Reimbursement Arrangements (HRAs).

WageWorks system is fairly easy for employers to use and is cost-effective. In fact, the company’s clients include 42 of the Fortune 100 and 130 of the Fortune 500. It has also has about 3,200 small and midsize business customers. In all, WageWorks covers roughly 2 million participants.

So, the next time someone tells you Facebook was the be-all and end-all of first-quarter IPOs, you’ll know better.

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.

Article printed from InvestorPlace Media,

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