A recent E&Y report notes strong IPO activity in the first nine months of 2018, with 166 completed IPOs, which raised $44.4 billion. This compares to 179 for the full year in 2017, which raised $40.4 billion. AXA Equitable Holdings was the largest IPO of the first nine months of 2018. For the first nine months of 2018, VC and sponsor-backed IPOs represented only 29 percent of all IPOs, which is a five-year low for financial sponsor-backed IPOs. During this nine-month period, financial sponsor-backed IPOs accounted for 38 percent of total capital raised in the public market, which is down from 72 percent over the prior five years. Foreign private issuer IPOs were at an all-time high in 2018. There were 46 IPOs during the nine-month period. Median IPO proceeds for IPO issuers during the period was $142 million. Healthcare remained the most active sector for IPOs. Approximately $6.2 billion was raised in Healthcare IPOs in the first nine months of the year. Tech companies were the second most active and raised $13.7 billion.

The report also addresses the usage of EGC IPO accommodations. Approximately 91 percent of the EGCs that have filed since the JOBS Act became effective have relied on confidential submission. The median number of days for EGCs from IPO Registration statement submission date to IPO was 112 days. A notable change cited in the E&Y report is that in 2018, 56 percent of new EGCs chose to adopt new accounting standards using private company effective dates. This may be a result of perceived challenges associated with the new standards for revenue recognition, leases, and credit losses. For the period from 2013 through 2018 (9/30), 96 percent of EGCs provided reduced executive compensation disclosures, 80 percent provided two years of audited financials, and 24 percent adopted new accounting standards based on private company effective dates.

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2018. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.