Fenwick & West securities and corporate finance co-chair Rob Freedman was quoted by Law360 in an article on two diametrically different trends in the equity capital markets in 2015 so far – a significant downturn in the issuing of initial public offerings compared with the same period in 2014, but a nearly concomitant rise in the number of follow-on offerings priced by public companies.
Asked to comment about the fact that there have been 25.1 percent fewer IPOs issued through the end of February 2015 than there were during the same period in 2014, Freedman said, “It’s hard to compare to last year, since last year was such an incredible year. It’s not that things aren’t looking good, it’s just not as robust as last year."
"Some of that might be [due to] selectivity [among investors]," he added, "and some of that might be companies waiting for audited year end financials, since we are in February."
Freemdan was also queried about the upswing in follow-on offerings.
"For companies that are already public, it's a much quicker process to raise funds. They see the markets are still pretty high and clearly there is still demand," he noted.
The full article is available through the Law360 website (subscription required).