Reg A+ IPOs are likely to complement but not replace traditional IPOs even as they become more popular, according to an article by a lecturer at the University of Bath. The article explains that large investment banks simply can’t afford to pursue fees from $50 million deals given their massive overhead. Also, the presence of institutional investors in traditional IPOs can contribute to efficient price discovery due to feedback from the buy side. Some companies, the article argues, depend on that information and wouldn’t want to be without it.
Academic Predicts Reg A+ Will Complement, Not Substitute Traditional IPOs
