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The Virtual IPO: How IPOs Are Changing

Posted on August 26th, 2020. Posted by

Expert Advice on IPOs

According to some experts, the past several months have created more change in the IPO market than the last 25 to 30 years. In the recent webinar hosted by ICR Capital and Davis Polk, those experts discussed what they’ve seen in the IPO market recently, changes to standard IPO processes, and what’s to come for IPOs during the remainder of the year.

The State of the IPO Market

After the initial onset of the pandemic, the first companies that were able to come back and reopen the market were those that were the least impacted by or even positively impacted by the pandemic. Technology and biotech companies, specifically, have seen great success in the IPO market over the past several months — and the pipeline continues to show promise.

What Has Changed?

One major change to the standard IPO process is that test-the-waters meetings and roadshows are now conducted virtually. Whereas a typical roadshow might span seven or eight days across a few different cities and encompass multiple in-person meetings, that model has changed in the wake of the coronavirus. In the current environment, roadshows may still involve several back-to-back meetings each day, but they are conducted via videoconference.

Ultimately, virtual meetings can offer several benefits to companies that are going public, including more opportunities to meet with investors, as well as more meeting options for funds that are not located in key cities like New York or San Francisco. Small and mid-cap funds outside of these cities now have more access to potential IPOs.

Where Will IPOs Go From Here?

In addition to the coronavirus pandemic, other social issues may have an impact on upcoming IPOs. Companies should consider:

  • Racial justice and an increased push for diversity, particularly within boards of directors
  • The upcoming presidential election

To listen to the full discussion, watch the webinar replay.

Tom McDonald

Tom McDonald is a Partner/Managing Director and Head of Business Development. He is responsible for marketing the firm’s capabilities to potential new clients as well as the institutional investment community.

View full bio   |   Other posts by Tom McDonald

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