2014 is a booming year for IPOs, with IPO activity in 2014’s first quarter significantly higher than the same period last year. Most of the IPO filings and offerings this year come from the tech and healthcare industry, but other industries have thrown up some big names as well. 2014 will be a huge year, in particular, for tech IPOs. While 2013 saw biotech IPOs leading the bunch, tech IPOs are set to take the lead for 2014. Tech companies tend to be pretty huge and hence have some pretty controversial IPOs. Furthermore, because tech companies operate so closely, one-to-one with consumers, the names that will appear are far more familiar to us than, say, those from the digital health industry. This gives tech IPOs a lot wider publicity and advertising leading up to their offering, which could be a good or bad thing. Take a look at some of the tech IPOs that are setting the stock markets buzzing.

King Digital Entertainment Plc

Wanna own a piece of Candy Crush Saga? The owner, Dublin-based entertainment company King Digital Entertainment Plc has filed for an IPO at an estimated $500 million to be listed on the New York Stock Exchange (NYSE) under the ticker “KING”. Their revenue in 2013 stood at $.1.9 billion, an eleven-fold surge. We’ve all spent one too many hours on Candy Crush Saga. Or ten. So is is this a good IPO to jump in on? Some analysts have posited that King is a one-hit wonder, and that if Candy Crush Saga doesn’t have sustainability, or if they don’t come up with other hits, King’s stock might just go the way of game company Zynga, whose stock is now 50% lower than its IPO price ever since Farmville players defected to Candy Crush. Think about it: how many people still play Candy Crush? However, others say that King is different because it’s less dependent on Facebook, and has better management. King has announced that it will use funds for working capital and acquisitions in the future, so more exciting developments might be in the pipeline.

Dropbox

Cloud storage is very important. Ask any university student who’s had the terrifying experience of losing their coursework because of a hard disk crash. Ask any business that needs to securely and reliably share huge amounts of confidential data. Dropbox has, in recent years, swept in to fill the gap, with more than 200 million consumers and making its way into more than 70% of companies. With their move to file for an IPO, raising almost $350 million in the most recent round of private funding, Dropbox is apparently on its way to the public with an initial valuation of $10 billion. Cloud storage will continue to be a necessary aspect of our digital lives, so we can expect that Dropbox will have some longevity. However, as always there are some hiccups. Dropbox for Business, the product for enterprises, has been criticized for being incompetent and unsuited for businesses. Apparently data encryption is limited, collaborative endeavours are technologically limited and password-protection isn’t the best. It even made its way onto Bloomberg’s list of banned apps for businesses. Furthermore, its rival, Box, is also set to go public soon. Still, Dropbox is immensely popular. Their ability to raise $350 million in funding also shows some optimism amongst private investors that shouldn’t go unnoticed. Definitely one to keep an eye out for!

GoPro

If you ever want to jump out of a plane or go diving with hammerhead sharks, you know exactly which camera to buy for recording the whole experience. GoPro, the company that has re-invented the action camera, is set to go public, recently filing for a confidential IPO. From serving a niche market of surfers, to providing for almost any and every sport, GoPro grossed more than $520 million in 2012 from 2.3 million cameras sold. In GoPro’s own words, they are a “premier consumer products company and an enabler of compelling media content”, almost undeniable when one surveys the industry. While competitors such as Sony have raced to produce action cameras of their own, GoPro clearly holds a dominant position in the market, one combined with an outstanding social media presence supported by a pretty damned good action camera. Still, the fact that they filed for a confidential IPO, one reserved for companies that make less than $1 billion in sales, may point to some slowing or insufficient sales potential. And, it essentially only has one product. GoPro has announced its intention to move into the market of image capturing for all unique moments in life, beyond sports. If it manages this, as well as expands its media clout, GoPro’s IPO might just be a great investment.

Shazam

Ever had a song catch your attention but you didn’t know what it was? Then you’ll know that Shazam is the one app to help you get a song stuck in your head for days. Shazam, known for its audio recognition software, has grown over the years to become huge, with over 420 million users worldwide, earning over $300 million in sales. Although nothing but rumors have been floating around regarding the date of Shazam’s IPO, Executive Director Andrew Fisher has hinted at a 2014 IPO. Shazam is the go-to application for music recognition, and even though some competitors have come into the picture (e.g. SoundHound), Shazam is still the first name that springs to mind. It has gained social currency over the years, as well as secured pretty crucial partnerships with companies like Pepsi and Barclays. Not only that, Shazam collects some very useful data about consumer preferences, so that is another area in which Shazam is still expected to gain revenue. Keep an eye out for Shazam as more news of a potential IPO is released in the months to come.

Alibaba

Last but not least, we’re going across the seas and oceans to take a look at Alibaba, China’s largest e-commerce company. For the uninitiated, Alibaba sells everything from luxury goods to toilet paper. And even if you have never heard of it, that doesn’t matter that much to Alibaba, which caters to a domestic market of over 618 million Chinese Internet users. Apparently, Alibaba is considering listings in either New York or Hong Kong, and has engaged investment banks Morgan Stanley and Credit Suisse Group to underwrite their offering. The company posted 71% and 61% growth in revenue for the last two quarters ended June, and its estimated valuation currently stands at $153 billion. It’s supposedly expected to hold the largest IPO since Facebook (currently valued at $159.4 billion). Furthermore you can count on Alibaba use the capital to do some innovative things. Already they’ve begun pushing their way into China’s instant messaging social scene through acquisitions, and have also bought stakes in companies like Weibo, China’s version of twitter. Alibaba’s dominance is impressive and gargantuan, and China’s seemingly endless market and economic growth paint a rosy picture. Even Yahoo!, has acquired a 24% stake in Alibaba – and saw their own share price double because of it. Definitely one to consider! UPDATE: 17/3/2014

Sina Weibo

Looks like the Chinese are gaining momentum in this year’s IPOs! Sina Weibo, China’s version of Twitter and Facebook, has recently filed with the U.S. SEC to raise $500 million for their IPO. In 2013, Weibo apparently earned over $188.3 million in revenue, with over 61.4 million Daily Average Users (DAU). Extremely promising and alluring, especially as it prepares to drop its anchors in the Western World. Not only is Weibo the go-to social media for the person on the ground, its users range from celebrities to property mogule — even the government. Weibo is owned by parent company Sina (already Nasdaq-listed), and has Alibaba as a minority shareholder. However, one big problem keeping investors jittery is that Chinese government regulation could potentially undermine the value of Weibo. Heavy censorship is the norm in China, and social media is an widespread uncontrollable tentacle of unfiltered information. Weibo themselves have warned investors of “uncertainty” arising from Chinese government regulation, including a judicial regulation released in September, “under which Internet users who knowingly make or share information considered defamatory or false could face up to three years’ jail time in China.” Because so much of Weibo depends on user-generated content, they admit is it yet to be seen how this regulation might impact their business. Still, the Chinese market seems to offer promises on end for those willing to take the risk. Will you?

GoDaddy

GoDaddy, for the uninitated, is the popular domain and hosting company. That means if you want to make your own website, GoDaddy is who you pay. In 2011, GoDaddy was sold to a mixture of private equity firms for $2.25 billion. Today, GoDaddy is said to be preparing for an IPO as soon as in the second half of the year. With over 12 million users and 57 million domain names, GoDaddy is expected to value at much higher than it was bought, although at the moment no official figures have been released of their yearly revenues and such. Still, S&P Ratings Services has reported that they expect revenue growth by a “high-single-digit-percentage rate”. Moreover, GoDaddy has been working on product development and variation, as well as overseas expansion. It is said by those in the know that GoDaddy is in the process of interviewing investment banks to select their underwriters. We’ll have to keep an eye out for this one as more news unfolds! — These are hardly the only few tech companies holding IPOs this year, but are definitely some of the few to keep an eye on. Remember to check out this article if you’re not too sure about IPOs to take the plunge, as well as download TradeHero today to help you get into the swing of trading and investing in IPOs. Happy trading! Image credit: www.digitaltrends.com