Alibaba's massive IPO will impact the timing, size and valuation of many other companies who are expected to IPO in the coming months.
...many Internet and tech companies with IPOs in the pipeline will wait to see how Alibaba performs before moving forward with their own offering. Hubspot Inc., LendingClub Corp., GoDaddy Inc., and Box Inc. are among the Internet and tech companies expected to go public this fall. None have set an IPO date or kicked off their roadshow. In fact, only one tech company in the pipeline has set an IPO date. Cyber-Ark Software Ltd., a security software company based in Israel which is aiming to raise about $75 million, is expected to debut during the week of September 22, the week after Alibaba. Most Internet and tech companies are expected hold off on their roadshows until after Alibaba’s first day of trading. THat could push a number of them into October. That is if all goes well. “It takes a lot of finesse to place a large IPO in a way that deals will trade nicely,” said Ms. Smith. Facebook’s troubled IPO had a chilling effect on the market. No company was willing to brave the public markets for nearly a month. Even in a relatively solid year for IPOs, where newly public companies are trading on average at 18% above their IPO, one-third of the crop of 2014 IPO companies are now trading below their IPO price, according to Renaissance Capital,. It’s almost time for Alibaba to test the waters. The stakes are high for both Alibaba and any potential followers.