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Proskauer’s Capital Markets Group Releases Comprehensive U.S. IPO Analysis

July 30, 2014

First-of-its-Kind Study Provides In-Depth Insight into Deal Structure and Trends

NEW YORK--(BUSINESS WIRE)-- Proskauer’s Global Capital Markets Group released its inaugural 2014 IPO Study today, which provides a comprehensive analysis of the structure and characteristics of U.S. initial public offerings. Based on the Group’s proprietary database of 100 IPOs that priced during 2013, the study examines key factors and aspects of the U.S. IPO market and provides market participants with extensive data about deal structures and terms, SEC comments and timing, financial profiles and accounting disclosures, corporate governance, and expenses. It also includes separate industry sections on health care, TMT, consumer/retail, financial services and industrials.

“We continue to provide innovative and ground breaking analyses of the equity and debt capital markets. Our IPO study is the first-of-its-kind in analyzing correlations of traditional legal terms with performance based on variables like structure, geography and industry. We are committed to creating intellectual capital and proprietary databases to provide value to our clients with strategic advice and market insights,” said Frank Lopez, partner and co-head of Proskauer’s Global Capital Markets Group.

Some of the study's key findings are:

> Sector breakdown: Health care and TMT IPOs were dominant, representing 31% and 29% of the deals, respectively.

> Regional breakdown: California reported the highest percentage of IPOs, followed by Massachusetts and New York.

> Emerging Growth Companies (EGCs): EGCs, as designated by the JOBS Act, more often priced in or above the IPO price range.

> Expenses: Average IPO expenses (excluding underwriting discounts) were $4.2 million. On average, EGCs spent $3.7 million and non-EGCs spent $5.9 million.

> SEC Comments: Financial services and health care IPOs tied for the lowest average number of total first round SEC comments (36 comments) and consumer/retail and industrials IPOs tied for the highest average number (51 comments).

> Financial profiles: 9% of the issuers were pre-revenue generating, while 59% had negative net income and 46% reported a positive adjusted EBITDA.

> Board independence: IPOs with a majority of independent directors on their Boards outperformed the IPOs that did not have a majority.

> Sponsor-backed companies: Sponsor-backed IPOs were most common in consumer/retail and industrials.

“Our detailed analysis of the 2013 IPOs provides unique and valuable information for both market participants and companies considering an IPO. In addition to reviewing key IPO considerations on an overall and industry basis, we also looked at how these factors impacted IPO pricing and aftermarket performance,” added Robin Feiner, senior counsel in Proskauer’s Capital Markets Group, who helped lead the study.

View the full Proskauer IPO Study.

Proskauer’s Capital Markets Group has extensive IPO experience, representing companies, underwriters and sponsors across all industries. In Bloomberg’s 2014 First Half Global Legal Adviser League Tables, the firm was highly ranked in a number of equity and debt categories that included U.S. Equity Offerings Issuer Advisers and U.S. Equity Linked Manager Advisers. Our experience with such a broad client base has offered our team great dexterity across all transaction types to achieve timely and successful results for our clients.

In April, the group released the 2014 Global High-Yield Bond Study, its third annual in-depth analysis of deal terms and trends in the high-yield bond market. The study provides a detailed review of more than 900 deals closed between 2011 and 2013 on a yearly and year-over-year basis.

About Proskauer

Proskauer is a global law firm recognized for its excellence both in practicing law and serving clients. We are trusted advisors to many of the world’s top companies, financial institutions, investment funds, not-for-profit institutions, governmental entities and other organizations across industries and borders. With 700+ lawyers in 13 offices and approximately 50 areas of practice, we have the capabilities, experience and creativity to guide our clients through their most important legal and business challenges. Additional information about the firm can be found at www.proskauer.com.




Proskauer

Somna Maraj, 212-969-5267

smaraj@proskauer.com

Source: Proskauer


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