Helping Emerging Growth Companies ring the exchange bells throughout 2014

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Two obvious statements:

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1.) 2014 was an exceptional year for Emerging Growth Companies (EGCs)

Right about now, the year-end reports start trickling out, and amongst the many disheartening current events reports – the Capital Markets IPO reports deliver Holiday Cheer. The first out of the gate, even before the ball drops in Times Square, is from PwC’s Deals Practice group.

” IPOs raised a total of $83.9 billion, an increase of 47 percent over the $56.9 billion raised in 2013, and approaching the proceeds of $92.6 billion raised in 2000.

q4-2014-ipo-watch-press-release--value-and-volume-of-ipos-by-quarter

The IPO market moderated slightly in the fourth quarter of 2014 as a volatile mid-October crimped new offerings before regaining ground in November. For the quarter, there were 60 public company debuts, as of December 4, representing $13.4 billion in proceeds.  This compares to 77 public listings in the fourth quarter of 2013 ending December 31, with a value of $24 billion in proceeds.”

It’s important to note that the numbers above only address NYSE and NASDAQ listed IPOs. As we report each week, and summarized here, the OTC Markets helps many companies list – and the largest percentage of EGCs ring that bell.

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2.) Going public is a really big deal for an EGC.

Being a public company is a ridiculously complex undertaking. Certainly, this begins right out of the gate drafting your S-1 registration with us. The volleying of the document with the SEC needs careful tracking – this whitepaper download has a step-by-step illustration to that.

One stress release for EGCs, clients have reported, is filing as a confidential IPO. This eliminates the media and prospective investor scrutiny (banter) that can distract and upset the process. It gives an EGC the elbow room to sculpt the best possible (and transparent) offering for investors – without needless armchair quarterbacks.

CHARTAnother complexity EGCs need to be aware of comes very quickly: their annual report and proxy. The labor around this yearly process was painstaking explained this week on our webinar titled Proxy Materials Logistics 101- a primer for small and micro-cap companies. Your brain will hurt try to comprehend all the steps and details involved with this annual undertaking.

And it goes without saying, once public, all issuers have the Herculean tasks of EDGAR, XBRL and continual shareholder communications.

Bottomline, and probably an third obvious statement, is choose your partners wisely. Absolutely this is a sales pitch to work with us, but the objective point is that all service providers – including Vintage – each have a niche they specifically serve. Match that to your company.

Have a great day.

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