In a new technologies and life sciences companies’ IPO report from Fenwick & West LLP, one interesting data parse ( for Vintage’s IPO team anyway) was the direct comparison of confidential IPO filings between 2014 and 2015. Although the entire 2015 IPO market is 33% “softer” than 2014, confidential filings that actually priced are only down 7%.
There can be many different thought-paths to speculate on this 7% to 33% comparison. Our interactions with confidential IPO clients lean towards that the “testing the waters” phase is creating stronger and more certain offerings. The working groups within the companies and banks are using this time to hone their messaging and tighten up their diligence materials prior their open IPO – the lionshare pricing within one quarter of their initial submission.
It is important to note that according to research firm Dealogic, only 56% of confidential S-1 filings actually price. That’s a lot of toe dipping that never ring the bell.
How complicated is the confidential IPO S-1 filing process? Very. Our whitepaper explains it very tactically.
CLICK HERE FOR A WHITEPAPER ON THE S-1 FILING PROCESS WORKFLOW