Is the JOBS Act Increasing the Number of IPOs?

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September 12, 2012

Less than six months after enactment of the JOBS Act, it's way too soon to know. But educated guesses are possible.

Yesterday, we participated in a JOBS Act roundtable organized by the US Treasury Department to assess the act's impact to date. Roundtable participants included institutional investors, securities exchanges, academics, investment bankers and lawyers.

The sense of participants was that although the JOBS Act is being well received by private companies, there did not yet seem to be evidence that the act is prompting a significant increase in the number of companies pursuing IPOs. A variety of reasons were offered for this, including the modest nature of relief under the JOBS Act in relation to the remaining regulatory burden of being a public company, perceived structural deficiencies in IPO pricing and trading, and the ready availability of private funding as an alternative to an IPO.

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Topic:Market Analysis