Welcome!

Agile Computing Authors: Gerardo A Dada, Liz McMillan, Jnan Dash, AppDynamics Blog, AppNeta Blog

News Feed Item

2013 IPO Survey: Fiscal Cliff Causes Uncertainty For 2013 IPO Outlook

ACCORDING TO KCSA STRATEGIC COMMUNICATIONS' ANNUAL SURVEY, LEADING IPO ATTORNEYS ANTICIPATE GREATER MARKET STABILITY AS OVERALL ECONOMY STRENGTHENS, AND AS OVER-HYPED SOCIAL MEDIA IPOS ARE NO LONGER IN THE PIPELINE

NEW YORK, Dec. 27, 2012 /PRNewswire/ -- 2013 may finally be the turnaround year for the U.S. IPO market, according to a new survey of U.S. transaction attorneys conducted by KCSA Strategic Communications (www.kcsa.com), a leading integrated communications firm specializing in financial public relations, investor relations, social media and creative marketing services.

In its 3rd Annual IPO Survey, KCSA conducted in-depth interviews with nearly 50 securities attorneys whose firms advised on 87 percent of the initial public offerings listed on major U.S. exchanges during 2012. 

According to the results of the independent survey: for the first time since the survey has been conducted, more than 1/3 of respondents (35%) believe that the IPO market in the coming year will be stronger than the previous one.  The remaining respondents think the IPO market in 2013 will be relatively flat when compared with 2012.

The perceived drivers for improvement include stabilization of the U.S. economy and moving beyond the fear of a 'fiscal cliff' (59%), resolution of the Eurozone crisis (12%) and increasing consumer confidence (5%).

According to Jeff Corbin, chief executive officer of KCSA Strategic Communications, "Since the end of the financial crisis that started in late 2007, there have been strong hands on the reigns of the U.S. capital markets, slowing down the IPO market. While there have been some big names that have gone public during the last few years – Facebook, Zynga and others in the social media space – the vast majority of those companies that could have, and should have, accessed the public markets, have had to wait for improving market conditions.  Those conditions seem to be coalescing in 2013, which should make for a more active IPO market."

According to 66 percent of those surveyed, the social media bubble has burst. The attorneys almost unanimously agreed that Facebook was both the most anticipated and most over-hyped IPO of 2012.  According to 89 percent, Facebook's IPO will cause valuations of social media companies to be lower.

When asked to reference the most anticipated IPO for 2013, 86 percent were not sure; this is in stark contrast to last year's survey in which 93 percent of respondents believed that Facebook was the most anticipated IPO of the coming year. The current sentiment is that there is no blockbuster IPO in the pipeline.

According to Alex Lynch, partner, Weil, Gotshal & Manges, "It's healthier for the IPO markets not to have one highly anticipated 'hot' listing that both overheats the market, causing a lot of volatility, as well as keeps investors, and, in turn, money, on the sidelines awaiting the big listing. Hopefully, not having one large 'hot' listing in 2013 will lead to a healthier and more stable overall IPO market."

The JOBS Act that was passed in 2012 has had a strong impact on pre-IPO companies, with 94 percent of the attorneys surveyed citing an increase in the number of confidential filings as a result of the Act. According to those surveyed, the advantages of filing confidentially include the ability to file without public scrutiny (48%), keep competitive information confidential (32%) and test the market's appetite (20%). Another impact of the JOBS Act on pre-IPO companies is that it provides companies an opportunity to pre-market the offering prior to filing with the SEC, according to 59 percent of those surveyed.

According to the survey, in 2013, it is likely that there will be strong demand for foreign companies to access U.S. capital markets and list on the major U.S. exchanges. When asked which foreign countries will provide the most issuances on the major U.S. Exchanges in 2013, respondents said China (38%), Israel (17%), The European Union (12%) and The United Kingdom (10%). 

"Many foreign companies, especially in the technology space, still view the U.S. capital markets as the holy grail in terms of listing, both in terms of perception and valuation as well as liquidity. These types of foreign companies continue to believe that the U.S. capital markets are the only place where their value will be appropriately reflected," commented Michael Kaplan, partner, Davis Polk & Wardwell LLP.

A key finding of the survey was that enthusiasm for Chinese IPOs continues to decline. In 2012 and 2011, when respondents were asked which foreign countries would have the most issuances on major U.S. exchanges, 58 percent and 100 percent of respondents, respectively, named China.

"The fall-off is largely driven by a number of well-publicized incidents of China-based issuers experiencing significant corporate governance and accounting issues that have created negative perceptions generally about China-based issuers.  However, listings of high quality China-based companies will likely continue in the future, as U.S. investors want to participate directly in China's economic growth," noted Colin Diamond, partner, White & Case LLP.

Private Equity backed companies are also expected to dominate the IPO landscape in 2013, as 68 percent of those surveyed think that the number of private equity backed IPOs will be greater when compared with 2012, which saw the highest number of private equity backed offering since 2007.

"The pipeline of private equity backed IPOs remains robust, and we anticipate seeing continued strong activity from this group of issuers," commented Joshua F. Bonnie, partner, Simpson Thatcher & Bartlett LLP.

When asked what industries will result in the most IPOs in 2013 respondents said: Technology (41%), Energy (24%), Healthcare (8%), Retail (6%), Real Estate (5%), Financial Services (6%) and Other (10%)

For more information about KCSA Strategic Communications or the 2013 IPO Outlook Survey, visit us at www.kcsa.com or contact Sharron Silvers, [email protected].

About KCSA Strategic Communications
KCSA is a fully-integrated communications agency specializing in public relations, investor relations and marketing with expertise in financial and professional services, technology, healthcare, media, energy and public services companies. Since 1969, the firm has demonstrated strategic thinking and program execution that drives results for its clients in the ever-changing communications and digital landscape. The firm's clients are its best references. For more information, please visit www.kcsa.com.

SOURCE KCSA Strategic Communications

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...