Canadian tech IPO market stirring to life

McQueen%2C%20Mark44X64.jpgPosted by Mark McQueen, CEO Wellington Financial LP
It is starting to feel like December 2003. Folks in the tech industry will know what I’m talking about. Software co. Workbrain went public, becoming the first technology story post-bubble to “get out” on the TSX. It was a great event for VC-backer Edgestone, and the sought-after leads went to RBC Capital Markets and CIBC World Markets.
The U.S. tech IPO window is always the first of the two to open, and at last check the six recent U.S. tech IPOs were all trading above issue price. More will be lining up by the day, although the challenge will be far fewer Underwriters to work with now that their i-banking market has shrunk. The U.S. post-IPO trading success can only mean one thing. Get ready for the new domestic tech IPO market, ’cause it is right around the corner.
A few months ago, we reminded readers that Information Technology shares traditionally lead the index out of a bear market (see prior post “IT shares have led the way out of 4 prior troughs” March 15-09).
Although those historical stats covered just 90 days, just look at what has happened to these identifiable tech names over the past six months:
Bridgewater Systems (BWC:TSX): +55%
Dragonwave (DWI:TSX): +325%
Descartes (DSG:TSX): +60%
Evertz Technology (ET:TSX): +10%
Macdonald Dettwiler (MDA:TSX): +65%
MKS (MKX:TSX): +61%
Miranda (MT:TSX): -22%
Open Text (OTC:TSX): +2%
RIM (RIM:TSX): +64%
Wi-LAN (WIN:TSX): +33%
Compared to the NASDAQ’s mid 30s performance, most of the these numbers are quite impressive; which gives the would-be tech Underwriting crowd the confidence they need to start pitching IPOs again.
Which are most popular names? The first two doors being knocked on are . . . Click here to read more of Mark's post.

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