Tableau (DATA), which sells a data visualization platform, and Marketo (MKTO), a provider of marketing automation software, priced their IPOs last night, pushing total IPO pricings in May to 22, the most since November 2007, when 26 deals were completed. Earlier, May saw the first 10-IPO week since 2010 and only the second since 2007. With eight companies still on the calendar for May, there is a possibility this month could be the first since May 2007 to see 30 pricings. No month has had more than 30 IPO pricings since October 2004.
Tableau raised $254 million by offering 8.2 million shares at $31, while Marketo raised $79 million by offering 6.1 million shares at $13. Tableau and Marketo, up 58% and 54% respectively, are experiencing strong initial trading, which reflects continued investor demand for fast-growing technology companies, with large addressable markets. Assuming these first-day pops hold up, pure-play software IPOs would have an average first-day pop of 37% year-to-date. Recent strong performance could incentivize several more high-growth tech companies to approach the IPO market.
