The recent market turmoil has put much of the IPO market in limbo. But when windows to the public market open, what’s required for successful execution? To answer this question and more, IPO Edge and the Palm Beach Hedge Fund Association hosted the first 2022 IPO Edge Boot Camp featuring senior management from recently-listed Bowlero Corp. (NYSE: BOWL) and SES AI Corp. (NYSE: SES) along with investment bankers, attorneys and other leading market participants. The live event featured speakers from Nasdaq, Gallagher, Vinson & Elkins, Stifel, ICR, GTS, and Morrow Sodali, running approximately 90 minutes and including a live Q&A session with the audience. Sentieo and Dealogic provided custom data for the event.
CLICK HERE TO WATCH THE FULL REPLAY ON DEMAND or watch the individualized highlight videos below:
Sarah Morgan, Partner, Capital Markets and Mergers & Acquisitions at Vinson & Elkins, explains how despite persistent inflation, war, broken supply chains, interest rates, and excessive volatility, companies are waiting carefully for the next IPO window to open.
Craig M. DeDomenico, Managing Director, Equity and Equity-Linked Capital Markets, Stifel, points to IPO readiness as a key focus in current market conditions. As part of his practice at Stifel, he emphasizes providing multiple paths to listing and the flexibility to pivot down different paths as market conditions change. Many of his clients are more mature companies, with 2/3 coming from the PE and VC worlds, which means they have well-established financial reporting standards – already delivering polished finanicals to boards and shareholders. With the current “hurry up and wait” mentality, he aims to position clients so that they are on the front end or in the middle of the cycle after markets re-open.
William Dooley, Director, M&A and Activism Advisory Group, Morrow Sodali, explains the current role of retail investors in SPACs compared to early 2021. Whereas companies had about 18% retail ownership previously, SPACs are lucky to see it compose 5% now. He emphasizes that retail investors are not buying because of the sponsor or the management team, but because of the target itself, staying in the deal with only 5-8% redemption rates as an investor class. This drop in retail participation is one factor that is driving some of the high SPAC redemption rates seen in the market during the latest quarters.
Phil Denning, Partner and Head of Special Situations, ICR, explains how the foundation of a successful public company, whether it takes a traditional IPO or SPAC route, is a good equity story. That story needs to be actively told and key milestones need to be used to give investors confidence in the business, executing on the plan, and the management team’s ability to deliver against those goals.
Patrick Murphy, Head of NYSE Market Making & Listing Services, GTS, explains how the Ukraine War, along with high interest rates and inflation, created a shaky market and resulted in a drop in public listings. However, that trend started to reverse course in the last few weeks, with bids once again coming into beaten-down shares.
Jack Cassel, Head of US New Listings, Nasdaq, points to the re-opening of the convertible bond market as a leading indicator for equity markets. Convertibles provide downside protection through underlying debt along with equity upside.
- Windows of opportunity that may open despite volatility and the war in Ukraine
- Keys to preparation and readiness that will allow issuers to execute effectively
- Continued dealmaking by SPACs that have already raised many billions of dollars
- Other funding and listing strategies such as venture capital and crowdfunding
- Secondary market trading of IPOs and De-SPACs
- Assessing complex insurance risks in IPOs and SPACs
Ramey Layne – Partner, Capital Markets and Mergers & Acquisitions, Vinson & Elkins
Sarah Morgan – Partner, Capital Markets and Mergers & Acquisitions, Vinson & Elkins
Alysa Craig – Managing Director, M&A, Head of SPAC Practice, Stifel
Craig M. DeDomenico – Managing Director, Equity and Equity-Linked Capital Markets, Stifel
Jack Cassel – Head of US New Listings, Nasdaq
John C. Marchisi – National Director, SPAC Segment, Gallagher
Patrick Murphy – Head of NYSE Market Making & Listing Services, GTS
Brett Parker – President, CFO, Vice Chairman, Bowlero Corp.
Qichao Hu – Founder, CEO, SES AI Corp.
William Dooley – Director, M&A and Activism Advisory Group, Morrow Sodali
Phil Denning – Partner and Head of Special Situations, ICR
John Jannarone – Editor-in-Chief, IPO Edge (Moderator)
Jarrett Banks – Editor-at-Large, IPO Edge (Moderator)