THE GLOBAL FUTURIST: Interesting Statistics About IPOs ("Initial Public Offerings") in the US.
Dear Friends:
My friend and colleague, Dick Brown, an expert at business financing and an associate at TNNWC Group, LLC (http://www.thenationalnetworker.com/) sent me a fascinating email containing and interesting observation about the number and types of companies being taken public in the United States. This IPO activity is indicative of a trend -- but I will leave the implications up to you.
The following content is excerpted from Dick's email to me:
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Doug:
In today's USA Today, they report that just through August, 2010, 171 companies have filed for IPOs against a total of 120 filings in 2009 and 153 filings in 2008.
The thing that surprised me was that "companies going public this year are 16 years old on average, versus 12 years old in 2007" ... both numbers far older than I would have guessed!
Best!
Dick Brown
843-237-9802
Check Out Our New Books:
"HOW TO RAISE MONEY" and
"THE PC REVOLUTION"
Now Available at: http://www.amerwld.com/
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In my view, it seems that since the early 2000s, companies going for IPOs, with the exception of a few high-technology barn-burners, are increasingly apt to be well-established within their industries before 1) underwriters will consider committing to taking a company public or buying or distributing its stock; and 2) the investing public (increasingly large institutional investors) is becoming a bit less speculative than in the earlier "penny stock" era. It should also be noted that the actual dollar amounts of these offerings has increased dramatically since 2000, and that the costs associated with an IPO (underwriters, advisors, attorneys, compliance, auditors, third-party valuations, filings) have gotten so high (on both an absolute and a percentage of proceeds basis) that it would be prohibitively expensive for smaller, less-established companies to access the conventional equity capital markets.
I expect this trend to continue for any company wishing to be listed on any US securities exchange. An increasing number of emerging enterprises will have to seek capital through more sophisticated and sparser private financing obtained from high net-worth individuals, private equity funds, hedge funds and other means. Carrying it one step further, it is likely that an increasing portion of these funds will be coming from China and Southeast Asia.
Faithfully,
Douglas Castle
Key Terms, Tags and Labels: IPOs, Dick Brown, venture capital, the capital markets, corporate finance, financial and investment trends, articles by Douglas Castle, The Global Futurist, TNNWC
Douglas Castle
Dear Friends:
My friend and colleague, Dick Brown, an expert at business financing and an associate at TNNWC Group, LLC (http://www.thenationalnetworker.com/) sent me a fascinating email containing and interesting observation about the number and types of companies being taken public in the United States. This IPO activity is indicative of a trend -- but I will leave the implications up to you.
The following content is excerpted from Dick's email to me:
---------------
Doug:
In today's USA Today, they report that just through August, 2010, 171 companies have filed for IPOs against a total of 120 filings in 2009 and 153 filings in 2008.
The thing that surprised me was that "companies going public this year are 16 years old on average, versus 12 years old in 2007" ... both numbers far older than I would have guessed!
Best!
Dick Brown
843-237-9802
Check Out Our New Books:
"HOW TO RAISE MONEY" and
"THE PC REVOLUTION"
Now Available at: http://www.amerwld.com/
---------------
In my view, it seems that since the early 2000s, companies going for IPOs, with the exception of a few high-technology barn-burners, are increasingly apt to be well-established within their industries before 1) underwriters will consider committing to taking a company public or buying or distributing its stock; and 2) the investing public (increasingly large institutional investors) is becoming a bit less speculative than in the earlier "penny stock" era. It should also be noted that the actual dollar amounts of these offerings has increased dramatically since 2000, and that the costs associated with an IPO (underwriters, advisors, attorneys, compliance, auditors, third-party valuations, filings) have gotten so high (on both an absolute and a percentage of proceeds basis) that it would be prohibitively expensive for smaller, less-established companies to access the conventional equity capital markets.
I expect this trend to continue for any company wishing to be listed on any US securities exchange. An increasing number of emerging enterprises will have to seek capital through more sophisticated and sparser private financing obtained from high net-worth individuals, private equity funds, hedge funds and other means. Carrying it one step further, it is likely that an increasing portion of these funds will be coming from China and Southeast Asia.
Faithfully,
Douglas Castle
Key Terms, Tags and Labels: IPOs, Dick Brown, venture capital, the capital markets, corporate finance, financial and investment trends, articles by Douglas Castle, The Global Futurist, TNNWC
Douglas Castle
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