Uncertainty clouds US IPO ebullience going into 2022

2021 ◽  
Keyword(s):  
United States ◽  
Hong Kong ◽  
Initial Public Offering ◽  
The United States ◽  
Venture Capitalists ◽  
Public Companies ◽  
Content Type ◽  
Chinese Companies ◽  
Public Offering ◽  
Start Ups

Significance The company's initial public offering (IPO) is one of three this week expected to raise upwards of USD500mn each, adding to what is already set to be a record-breaking year for IPOs in the United States despite the withdrawal of Chinese companies under pressure from Beijing and Washington. Impacts Hong Kong will be the main beneficiary of Chinese companies' forced IPO withdrawal from US markets. Venture capitalists' being cash-rich should mean a steady stream of start-ups that will eventually seek to become public companies. Investors will press SPAC sponsors to risk more of their own capital.

scholarly journals The Impact of R&D Alliance on the Survival of Newly Listed High Tech Firms

2016 ◽  
Vol 6 (2) ◽  
pp. 197
Author(s):  
Vicar S. Valencia
Keyword(s):  
United States ◽  
Longitudinal Data ◽  
Financial Performance ◽  
Initial Public Offering ◽  
The United States ◽  
High Tech ◽  
Estimation Strategy ◽  
Public Offering ◽  
The Impact

This paper investigates the extent to which R&D alliance participation affects the survival performance of newly listed high tech firms. The estimation strategy identifies the impact through changes on a firm’s alliance status. Using longitudinal data on high tech firms that had an initial public offering in the United States, results suggest that R&D collaborating firms experience greater survival, relative to non-R&D collaborating firms. In particular, participation in an R&D alliance is associated with an attenuation of delistment due to poor financial performance.

Cross-Border LBOs, Human Capital, and Proximity: Value Addition through Monitoring in Private Equity Investments

2020 ◽  
pp. 1-41
Author(s):  
Thomas J. Chemmanur ◽  
Tyler J. Hull ◽  
Karthik Krishnan
Keyword(s):  
United States ◽  
Human Capital ◽  
Initial Public Offering ◽  
Private Equity ◽  
The United States ◽  
Efficient Allocation ◽  
Value Addition ◽  
Cross Border ◽  
Target Firms ◽  
Public Offering

We show that cross-border leveraged buyout investments involving U.S. rather than non-U.S. private equity (PE) investors are more likely to have a successful exit (initial public offering or acquisition). Exogenous increases in effective proximity following the signing of “open sky agreements” between the United States and target firms’ home countries increases both the propensity of U.S. PE firms to invest in these firms and the value addition by these investors. We show that such increases in value addition by U.S. PE investors following proximity increases are at least partially due to better monitoring, facilitated by the more efficient allocation of experienced U.S. PE managers to cross-border deals.

scholarly journals Political Uncertainty and IPO Activity: Evidence from U.S. Gubernatorial Elections

2017 ◽  
Vol 52 (6) ◽  
pp. 2523-2564 ◽  
Author(s):  
Gönül Çolak ◽  
Art Durnev ◽  
Yiming Qian
Keyword(s):  
United States ◽  
Initial Public Offering ◽  
The United States ◽  
Control Group ◽  
Government Contracts ◽  
Political Uncertainty ◽  
Gubernatorial Elections ◽  
Public Offering

We analyze initial public offering (IPO) activity under political uncertainty surrounding gubernatorial elections in the United States. There are fewer IPOs originating from a state when it is scheduled to have an election. To establish identification, we develop a neighboring-states method that uses bordering states without elections as a control group. The dampening effect of elections on IPO activity is stronger for firms with more concentrated businesses in their home states, firms that are more dependent on government contracts (particularly state contracts), and harder-to-value firms. This dampening effect is related to lower IPO offer prices (hence, higher costs of capital) during election years.

scholarly journals MAKING MARKETS: INFORMATION AND PARODY IN VICTORIAN COMMERCIAL REPRESENTATION

2018 ◽  
Vol 46 (1) ◽  
pp. 157-180
Author(s):  
Aeron Hunt
Keyword(s):  
United States ◽  
New York ◽  
Social Media ◽  
Initial Public Offering ◽  
New York Times ◽  
The United States ◽  
General Motors ◽  
Public Offering ◽  
Red Bull ◽  
Media Company

In the early months of 2012 excitement built for the initial public offering of Facebook, the behemoth social media company with the boy-wonder CEO. Two days before shares began trading on May 18, the IPO was expected to generate $16 billion for the company, placing it third after General Motors and Visa in the list of largest IPOs in the United States to that date. In the “frenzy” leading up to the IPO, the New York Times reported waiting lists at events for potential investors and speculation about where “newly minted Facebook billionaires” would go for a drink, while the company revealed its plans to celebrate with a “hackathon” featuring employee DJs and Red Bull (Rusli and Eavis).

scholarly journals Marketability Discount in Various Economic Environments. Comparison of Developed and Emerging Markets on the Example of the USA and Poland

2020 ◽  
Vol 13 (6) ◽  
pp. 132
Author(s):  
Radosław Pastusiak ◽  
Jakub Keller ◽  
Michał Radke
Keyword(s):  
United States ◽  
Emerging Markets ◽  
Initial Public Offering ◽  
United States Of America ◽  
The United States ◽  
Econometric Analysis ◽  
T Test ◽  
Linear Modelling ◽  
The Usa ◽  
Public Offering

The aim of the presented article is to compare and evaluate the occurrence and level of marketability discount in developed and emerging markets in the example of the United States of America (USA) and Poland. According to the hypothesis put forward in the article, due to the smaller degree of development and depth of emerging markets, the marketability discount obtained in the context of the initial public offering (IPO) is lesser in its extent, as compared to the case when the IPO takes place in the developed market. The authors have made a statistic and econometric analysis based on a sample of nearly 200 IPOs in Poland and 1200 IPOs in the USA. The study used an analysis of the statistical differences between the groups (t-test), and also a linear modelling of the determinants of liquidity discount volume. The obtained results show that the stated hypothesis was correct, and that there are significant differences between the studied markets in reference to the marketability discount. The authors also concluded that the discount is not related to the condition of the company.

Didi debacle shines light on China's new normal

2021 ◽  
Keyword(s):  
New York ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
The United States ◽  
New York Stock Exchange ◽  
New Normal ◽  
Content Type ◽  
York Stock Exchange ◽  
Regulatory Scrutiny ◽  
Public Offering

Significance China’s ride-hailing major Didi was targeted by the Cyberspace Administration of China (CAC) ahead of its initial public offering (IPO) on June 30. It is complying with the ongoing cybersecurity review mandated by Beijing and is battling rumours about plans to delist from the New York Stock Exchange and go private. Impacts Current investors in Chinese tech stocks need to consider this situation as a new normal, not a departure from trend. The VIE structure will likely come under greater regulatory scrutiny, but is unlikely to be dissolved. Didi may yet delist in the United States.

Crowdfunding

2018 ◽  
pp. 719-745
Author(s):  
Alexandra Horváthová
Keyword(s):  
United States ◽  
European Union ◽  
Venture Capital ◽  
Initial Public Offering ◽  
The United States ◽  
Common Denominator ◽  
The European Union ◽  
Equity Crowdfunding ◽  
Legal Challenges ◽  
Public Offering

Crowdfunding is a way of raising money through small contributions from a large number of investors, i.e. a “crowd.” Crowdfunding constitutes a common denominator for a number of financing methods, from donations through lending up to venture capital, all taking place online. Therefore, there are numerous legal challenges, namely use of copyright, distribution of loans and credits, or possible sale of securities. This chapter focuses on the development of equity crowdfunding, which shows many similarities with classical initial public offering (IPO) as a financing tool, yet on a smaller scale. The chapter analyzes the existing regulatory framework of equity crowdfunding in the United States and in the European Union.

scholarly journals New path to profits in biotech: Taking the acquisition exit

1969 ◽  
Vol 13 (2) ◽  
Author(s):  
Nils Behnke ◽  
Norbert Hültenschmidt
Keyword(s):  
Data Analysis ◽  
Initial Public Offering ◽  
Paper Analysis ◽  
Venture Capitalists ◽  
Parallel Trade ◽  
Central Thesis ◽  
Public Offering ◽  
Start Ups ◽  
Deal Making ◽  
Company Analysis

The paper aims to demonstrate that biotech start-ups increasingly are choosing trade sales to large pharma or biotech players to move their drug discoveries into the marketplace. It draws on Bain & Company analysis to show that this can provide higher return on investments than an initial public offering, or IPO, once the traditional exit for entrepreneurs and venture capitalists (VCs), but now far less common, and in a shorter time. It argues that pharma companies, VCs and biotech firms need to adapt their approaches to this shift and identifies new priorities for each of these key actors in the sector. In addition to its central thesis, the reader will take from the paper analysis of historical biotech trade sale and IPO data; analysis of pharma companies' strategies for and results from licensing and acquisition deal making; analysis of VCs' strategies for and results from biotech investments; and analysis of biotech companies' strategies for and results from crystallising the value of drug discoveries. The latter includes the recommendation of a 'parallel trade' approach that seeks maximum flexibility by preparing the company for both IPO and trade sale.

Border strife will set back Chinese business in India

2020 ◽  
Keyword(s):  
United States ◽  
Solar Cells ◽  
Venture Capital ◽  
The United States ◽  
Highway Projects ◽  
Content Type ◽  
Chinese Business ◽  
Chinese Companies ◽  
Investment Barriers ◽  
Trade And Investment

Significance It has banned 59 Chinese apps and imposed trade and investment barriers. India’s economy is dependent on venture capital from Chinese tech giants, while many of its industries rely on imports from China. Impacts India will seek greater tech investment from Japan and the United States. Delhi’s tariffs on solar cells and modules imported from China will be used to increase funds for domestic manufacturing of these items. Chinese companies will be excluded from road and highway projects in India.

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