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LINE pops 27% on billion-dollar debut, sending a positive message to tech IPOs

July 14, 2016

LINE (LN), the popular Japanese messaging platform, popped 27% on Thursday after raising $1.15 billion in the largest US tech IPO since Alibaba in September 2014. While tech IPO activity still remains well below historical levels, LINE’s IPO is the latest positive data point from the sector. The past ten tech IPOs finished Thursday with a positive return from their IPO prices, with the group averaging +52%. Furthermore, the prior four tech IPOs of 2016 have positive aftermarket returns. Two fast-growing VC-backed tech IPOs from earlier this year are leading the pack: API provider Twilio (TWLO; +178%) and optical network components maker Acacia Communications (ACIA; +128%). The recent outperformance from tech IPOs suggests that investor demand is healthy, provided that issuers come to market at a reasonable price.

Last 10 tech IPOs
Company
Ticker Country IPO Date Deal Size
($mm) 
First day 
return
Return
at 7/14
LINE LN Japan 7/14/16 $1,149  +27% +27%
Twilio TWLO US 6/23/16 $150 +92% +178%
China Online Education COE China 6/10/16
$46 0% +4%
Acacia Communications ACIA US 5/13/16 $104 +35% +128%
SecureWorks SCWX US 4/22/16 $112 0% +6%
Yirendai YRD China 12/18/15 $75 -9% +82%
Atlassian TEAM Australia 12/10/15 $462 +32% +30%
Match Group MTCH US 11/19/15 $400 +23% +31%
Mimecast MIME UK 11/19/15 $78 +1% +1%
Instructure INST US 11/13/15 $70 +13% +29%