Without question, “IPO” has been the capital markets buzz word for investors throughout 2014 —with 70 pricings each in Q1 and Q2. What’s also notable is that the JOBS Act “confidential IPO” process for Emerging Growth Companies (EGC) may be creating a stronger, more stabilized environment.
From Morrison Foerster:
… almost 60% priced within or above the stated price range—this is fairly consistent with the experience of the last several quarters. Perhaps it is too early to assess, but some have speculated that test-the-waters meetings for EGC [confidential] IPOs are providing useful information regarding pricing and that is contributing to more deals pricing within the filing range compared to pre-JOBS Act periods.
So that begged the question – are investors taking advantage of this trend? Yes, up five percent since we asked this question in late summer 2013.
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What’s our role in this upbeat story? Delivering intelligent value – right from the initial S-1 drafting session to getting the financial brand crisp online.
Have a great day.