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Going Public: The U.S. IPO Report

First Half 2019

In our new study, Going Public: The U.S. IPO Report, we examine IPOs that priced in the first half of 2019 to uncover the trends that prospective issuers, sponsors, investment banks and investors need to keep in mind.

Top Trends to Follow

Based on our analysis, we see several overarching trends shaping the IPO outlook, including:

  • Despite some large high-profile IPOs, the broader trend has been away from mega IPOs and toward smaller-cap IPOs.
  • There has been a meaningful percentage of IPOs with multiclass structures, with super-voting rights higher than historical norms.
  • Although the time through the SEC is consistent with the past, the SEC process continues to be streamlined with a record low average number of comments.
  • Where insiders participate in an IPO, they increasingly are acting as anchor investors at the outset of the roadshow for the IPO.
  • As the private markets continue to see robust valuations, we saw a relatively high incidence of private placements prior to or concurrently with IPO.
  • The market continues to get comfortable with use of the JOBS Act accommodations for EGCs, with approximately 75% of EGC issuers using two years of audited financial statements and approximately 70% using two years of selected financial information.
  • Foreign private issuers continue to access the U.S. IPO market, with an uptick in China-based issuers in the first half of 2019.

In today’s complex, dynamic marketplace, executing a successful IPO takes strategic thinking, nimbleness and smart timing. Paul Hastings can help.