First-of-its-Kind Study Provides In-Depth Insight into Deal Structure
“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
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:
> 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
> SEC Comments: Financial services and health care IPOs tied for the lowest average number of total first round
> 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
View the full Proskauer IPO Study.
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.
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