|Having been dismissed by financial analysts earlier in the year, the IPO is now said to be making a comeback. It is a comeback with less fire than its initial burst into the financial world, but it seems that internet-related companies are still turning to the IPO and favouring it as a flotation option. |
Internet related companies are finding the IPO once again a successful way to raise the value of their companies. One such company Chinese online gambling firm Shanda Interactive Entertainment Ltd, has seen the share price rise 177 percent by listing themselves via an IPO. The initial price of US$11 nearly doubled via this system of going public.
IPO analyst John Fitzgibbon Jr said of the return of the IPO: 'You needed time to heal the wounds [from the dot com collapse].Well, we've had enough time. The Internet has come back...What you're seeing coming aren't those companies with 20-something CEOs. Today, you have to be established in your marketplace, have revenue and you almost always have to have turned the corner on profitability.'