Meet Today's Hot IPOs

Today was apparently a good day to go public.

Three companies made their exchange debuts today with impressive success.

  • Demandware (NYSE: DWRE  ) , a provider of cloud-based enterprise software, priced its IPO at $16 last night, well above the earlier range of $12.50 to $14.50.
  • M/A-Com Technology Solutions (Nasdaq: MTSI  ) , a maker of analog chip products, priced at the top of its $17 to $19 range.
  • Allison Transmission (NYSE: ALSN  ) -- a manufacturer of vehicle transmissions, naturally -- was expected to price between $22 and $24 before settling on $23.

February was a good month for IPOs, and the favorable momentum continues. Not only is the pipeline of new issues oozing out at a steady drip, but investors are hungrily waiting with portfolios wide open.

Allison opened exactly at its $23 IPO price, but the other two debutantes opened yet higher. M/A-Com's first trade today clocked in at $21. Demandware is the real pop star, though. The provider of data management solutions for e-commerce was looking to hit the market as low as $12.50 earlier this month before pricing at $16. It opened at $25.25.

It only helps that cloud computing continues to be a hot industry. Companies are turning to server-stored enterprise solutions as both cost-effective and flexible options.

Demandware is growing quickly. Revenue climbed 54% to $56.5 million last year, but it did not turn a profit.

Then again, these are the new kids. They're not supposed to be perfect.

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Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.


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