#RECENT IPOS 2015 REGISTRATION#

The availability of new communication technology and widening of the investor pool have led businesses to reimagine their roadshows, introducing “investor days,” when management is broadly accessible to any and all potential investors via the internet. and Duolingo, Inc., have followed suit.Īt the same time, companies have adapted the traditional playbook for meeting investors. To date, upward of 20 companies, including Rivian Automotive, Inc. became the first company conducting a traditional IPO to allocate roughly 1% of its offering to retail investors via the Robinhood and SoFi trading apps.

Historically, companies and investment banks have focused almost exclusively on meeting institutional accounts during the roadshow, allocating the IPO shares to them in the process. We saw the target of IPO marketing widen in 2021. Although some in-person investor meetings resumed toward the end of 2021, we expect a substantial majority of these meetings to continue virtually for at least the first half of 2022 not only because of the recent surge in variant cases, but also since virtual meetings have the ability to reach more investors in a shorter time frame. During the pandemic, roadshows turned virtual - with bankers and companies trading conference rooms for Zoom backgrounds. and abroad to meet with potential investors. Historically, a company would conduct a seven- to 10-day roadshow, traveling to major cities in the U.S. Like other transactions, and business practices in general, COVID-19 has affected the IPO process. We expect this trend to carry into 2022, with continued SEC scrutiny of topics such as non-GAAP financial measures and 'cheap stock' issuances to company insiders. Similarly, the average number of comments received during subsequent back and forth with the SEC increased over 30% from 2015.

#RECENT IPOS 2015 REGISTRATION#

In 2021, a company could expect to receive an average of 21 SEC comments on its initial IPO registration statement filing, an increase of more than 30% from 2015. The number of companies going public via a “traditional” $100 million-plus IPO rose to more than 275 in 2021, up from just 49 in 2016.Īlong with this uptick in activity, we have seen an increase in Securities and Exchange Commission (SEC) scrutiny of IPO disclosures. Companies seeking to go public are finding more flexibility than ever to choose the path that best fits their needs.Ĭonventional IPOs generally involve the company issuing shares to the public for cash. Special purpose acquisition companies (SPACs) have dominated headlines since 2020 and direct listings increased in popularity.

IPOs rose in 2020-21, new models of going public also became more mainstream. It was a banner year for companies going public in the United States: Over 1,000 companies gained listings on American exchanges in 2021, up from just 118 companies in 2016. Strong tailwinds suggest 2022 will be another big year.Companies are reaching new investors through stock trading apps, opening up their roadshows to the public and negotiating more flexible lockup agreements.Along with the rise in IPO activity, companies are receiving more SEC comments on their filings.IPOs skyrocketed in 2021, with SPAC IPOs and direct listings contributing meaningfully to the increase.

Recent ipos 2015