Much is being made of two tech IPOs coming out this week. Yes, the arrival of Diginet and iPayment (oh, that’s so 1990s sounding!) will end a two-month lull in the offering market. While the underwriters are saying that the road show is going well (what else would you expect them to say), Diginet and iPayment are both losing money.
What happens if both or either do well? Near-term, I count 18 U.S. IPOs in the backlog, and they’d happily come to market, looking to raise about $3.6 billion.
But the sumo wrestler in the closet is, of course, Google. The parade of stories about that company’s potential offering is growing, and the company is participating in some of the stories. And as I pointed out on the weekend, ex-analyst Lise Buyer has joined the company in a position that I would call help-tridy-us-up-to-go-public.
What would a Google offering look like? Well, with something like $500-mm in sales this year, and cashflow positive since December of 2000, it would be the first tech offering in some time to attract broad and deep institutional interest.