Overall, in 2015, 170 companies issued initial public offerings and raised $30 billion -- the lowest amount raised since the bear market of 2008-2009.
New York, NY (PRWEB) January 15, 2016
On January 13, 2016, Brandi Gatlin, Director, Institutional Sales at the boutique firm, Triad Securities Corp., reported that the company published a new custom research report covering the fourth quarter and current state of the new issue market titled, "4Q15 Syndicate Summary & Outlook."
The purpose of the report is to inform the investing public about the current state of the syndicate market and its performance in the fourth quarter.
The research showed that as equity volatility has increased, IPO and secondary issuance saw a sharp drop during 4Q.
"Overall, in 2015, 170 companies issued initial public offerings and raised $30 billion -- the lowest amount raised since the bear market of 2008-2009," stated the report.
As compared to 2Q and 3Q, the report shows that 4Q15 saw a drastic decrease in the number of IPOs. In December, only two companies issued IPOs.
"In the fourth quarter, the number of IPOs was 36, down from 40 in 3Q and a peak of 74 in 2Q -- when stocks were establishing all-time highs. The pattern was even more pronounced for secondaries. In 4Q, 61 companies raised additional equity compared to 90 in 3Q, 196 in 2Q and 229 in 1Q."
This risk-averse environment finds the IPO and secondary markets off to a slow start in 2016 and likely comes as a result of the geopolitical issues and concerns over the increasingly slow market growth in China.
In order to generate capital for expansion and other corporate purposes, such as owners seeking exit strategies, many private and publicly traded companies will presumably still continue to try and access the markets in 2016. But until China's trajectory of growth becomes clearer and the bio-tech and energy sectors stabilize, there may be little activity.
The IPO and secondary market research report can be found at Triad Securities' website, at triadsecurities.com.
About Triad Securities
Triad Securities Corp. is a prime brokerage services firm offering superior and individualized prime broker services to professional traders and hedge funds. They offer direct access to algorithms, brokers, and exchanges. To learn more about their state-of-the-art technology and competitive transaction charges, visit http://www.triadsecurities.com.