It’s not just LinkedIn (NYSE: LNKD), but initial public offerings (IPOs) are hot right now, as two large companies – Pandora and Groupon – are planning to offer stock to the public. The IPO related exchange traded fund (ETF) could be poised to react to this action. The First Trust US IPO Index (NYSEArca: FPX) holds over 100 companies and is up almost 32% for the past year.
Pandora Media Inc. is looking to raise about $123.2 million through a U.S. initial public offering. Lee Spears for Bloomberg reports the Internet music company is offering 13.7 million shares for about $7 -$9 each. Morgan Stanley, JPMorgan Chase & Co. and Citigroup Inc. are leading the offering. [Tom Lydon Discusses IPO ETF, LinkIn on Breakout.]
Michael Liedtke for Associated Press reports Groupon.com, the online coupon seller, is also in the IPO market. After shares for LinkedIn doubled after their first day of an IPO offering, companies are catching on to this trend. Shares prices for Groupon are not yet determined. [An ETF to Play the IPO Revival.]
“The party has started,” said John Fitzgibbon, founder of IPOscoop.com.
“We want the time people spend with Groupon to be memorable,” Mason, 30, Groupon’s CEO and one its largest stockholders with more than 23 million shares, wrote in his own letter. “Life is too short to be a boring company. Whether it’s with a deal for something unusual, such as fire dancing classes, or a marketing campaign … we seek to create experiences for our customers that make today different enough from yesterday to justify getting out of bed.”
Tisha Guerrero contributed to this article.
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