More companies may be pursuing U.S. initial public offerings (IPOs) while simultaneously shopping themselves out for an acquisition, due in part to a sluggish IPO market.
A review by Bloomberg BNA identified at least 14 out of 52 companies (27 percent) that withdrew their U.S. IPO registration statements in 2016 after which they were partially or totally acquired within six months of the withdrawal. This compares to 11 out of 79 companies (14 percent) in 2015. Overall, nearly one-fifth of companies that withdrew their U.S. IPO registration statements since January 2015 have announced a sale within six months of the withdrawal.
The data, derived from Bloomberg Law, suggests that more companies may be pursuing a dual-track process than in the recent past, attorneys told Bloomberg BNA. The dual-track process is more attractive when companies need to raise cash during volatile or flagging markets. It also can provide more flexibility and leverage to negotiate deals and may result in better sale prices.
Read more in my story, Sale or IPO? Some Companies Take the Dual Route.
Bloomberg Law subscribers can access additional data on IPOs in our U.S. Quarterly IPO Market Update.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)