10 Updates

The Demise Of The Hot IPO: FireEye And Rocket Fuel Collapse

May 8 2014, 6:02pm CDT | by

Less than eight months ago, two tech companies that were losing money listed their shares on Nasdaq on the same day and saw their shares explode higher. FireEye and Rocket Fuel ushered in the return...

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11 weeks ago

The Demise Of The Hot IPO: FireEye And Rocket Fuel Collapse

May 8 2014, 6:02pm CDT | by

Less than eight months ago, two tech companies that were losing money listed their shares on Nasdaq on the same day and saw their shares explode higher. FireEye and Rocket Fuel ushered in the return of the hot IPO , reminding some of the first Internet bubble.

This week history repeated itself as shares of FireEye and Rocket Fuel collapsed. Like in the first Internet bubble, shares of the companies plunged weeks after pre-IPO venture capital investors, founders and executives cashed-in.

Earlier this week FireEye, a seller of cybersecurity software, reported first-quarter financial results that were not enough to meet the very high expectations that had been built into the stock. Shares of FireEye fell by 22% on Wednesday.

FireEye CEO David DeWalt hopped on CNBC to apologize and confront questions over having personally sold $39 million of stock in March at a price of $79.54 per share. In that secondary offering, FireEye founder Ashar Aziz sold $83 million of stock and venture capital firm Northwest Venture Partners, a pre-IPO investor in the company, sold $160 million of FireEye shares. The stock slipped another 4% on Thursday to $27.45. The stock soared by 80% on IPO day and closed at $36.

Rocket Fuel, an advertising technology company, released its most recent financial results after the markets closed on Thursday and the outcome looks to be equally ugly. Shares of the company are getting hammered in after hours trading, plummeting by 25% to $20.69. Rocket Fuel raised some $116 million in its IPO by selling stock at $29 a share. It stock increased by 93% in its first day of trading, closing at $56.10.

Rocket Fuel conducted a secondary offering earlier this year by selling stock for $61 per share. Pre-IPO venture capital investors and other insiders received $175 million. About $100 million of that windfall went to venture capital firm Mohr Davidow Ventures. Rocket Fuel CEO George John also sold some $18 million of stock.

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

Melbourne Rising Media Launch
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by r ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Ra ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin Hussein ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states last mo ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 milli ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 201 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kid ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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