REPORT: 2014 Middle Market US IPO Activity Increases Over 2013 But Continues To Lag Behind Historic Levels

December 23rd, 2014
in econ_news

Action in Washington Necessary to Stimulate Middle-Market Public Capital Formation

from Cohn Reznick LLP

NEW YORK (December 22, 2014) - Despite year over year gains and historic returns, middle market initial public offering (IPO) activity in 2014 remained behind the level necessary to stimulate large scale economic growth, according to new research released today by CohnReznick LLP, a top ten accounting, tax, and advisory firm specializing in middle-market companies.

Follow up:

In terms of the broader market, the 2014 calendar year was the best year for IPOs since 2000, with 278 IPOs generating more than $90 billion in proceeds. However, IPO activity among the middle market was much more modest, with just 237 IPOs raising nearly $28 billion in 2014, compared with 190 IPOs raising more than $31 billion in 2013. This represents a 24% increase in the number of IPOs but an 11.4% decrease in proceeds year over year. CohnReznick defines the middle market as companies with market cap between $10 million and $2 billion, excluding funds and SPACs.

"When it comes to middle market IPO activity, 2014 was a good year, but not a great year," said Dom Esposito, partner and leader of CohnReznick's National Liquidity and Capital Formation Advisory Group.

"Middle market companies represent a powerful growth engine for the economy and providing opportunities for capital formation among this sector represents a tremendous opportunity for Washington to stimulate job growth."

The CohnReznick Middle Market Equity Capital Report is the fourth in a series of quarterly reports from CohnReznick examining the state of the IPO market and its impact on middle-market businesses.

Alex Castelli, partner with CohnReznick's National Liquidity and Capital Formation Advisory Group, said:

"Looking beyond the remarkable broader market IPO headlines of the past year, what we are seeing is a flat trajectory for the middle market. However, a number of factors are at work in Washington that may make 2015 a watershed year for middle-market public capital formation."

These potential changes include:

  • Regulation A+ rules forthcoming from the SEC would be a boon to the sub $50 million IPO market.
  • Congress is expected to develop and ready a JOBS Act 2 for the President's desk that could have major implications for middle-market capital formation.
  • The SEC Tick Size Pilot will advance, potentially stimulating capital formation activity in the middle market.
  • Discussion and possible legislation to create a new form of "Venture Exchange" will be optimized to better support middle market companies.

The full study and research will be released later this month and will be available at www.cohnreznick.com/capitalformation.









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved