Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
Financial industry representatives and observers appeared skeptical May 10 that the SEC is a major contributor to a downward trend in initial public offerings as the agency’s new leader looks to reverse the tide.
Participants in a conference on the U.S. initial public offering market generally expressed support for Securities and Exchange Commission regulations governing public companies, although some said financial burdens associated with going public could be reduced. Chairman Jay Clayton, who took office May 4, has said he will work to reduce IPO hurdles, but hasn’t released a detailed plan.
Globalization and other economic factors play a larger role in the IPO market than regulation, said Chris Cooper, global chief financial officer of venture capital firm Sequoia Capital.
“Regulation is not the problem,” he said at the gathering hosted by the SEC and New York University’s Salomon Center for the Study of Financial Institutions. “It’s not the hurdle.”
The number of private companies that have had five or more venture capital-backed financing rounds has increased considerably from 2005 to 2016, indicating that more companies may be staying private longer, according to Bloomberg data. In 2016, 56 such deals raised about $9.3 billion dollars, compared to 29 that raised $700 million in 2005.
Clayton, who worked on Alibaba Group Holding Ltd.’s $25 billion IPO and other such offerings as a lawyer at Sullivan & Cromwell LLP, said at his confirmation hearing in March that he sees “meaningful room for improvement” in making public capital markets more attractive to businesses.
A spokesman for Clayton didn’t immediately respond to a request for comment.
Reviving the IPO market might be unnecessary, said Robin Graham, a managing director at investment bank Oppenheimer & Co. Inc. With companies taking longer to go public, the businesses are more mature and predictable, he said.
“That’s a good thing for individual investors,” Graham said. “It’s a good thing for the economy.”
To contact the reporter on this story: Andrew Ramonas in Washington at email@example.com
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
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 firstname.lastname@example.org.
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 email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)