With Evoqua tipped to be gearing
up for an initial public offering
(IPO), turning from a private to a
public company, what can it learn
from the industry’s experience?
When is a right time to ‘go public’?
By Jeremy Josephs
With Article 50 triggered in the UK it has raised the question of how it will affect the rate
of Initial Public Offerings (IPO)? The
answer would appear to be that the
British IPO might well be down but is
most certainly not out. While on the
other side of the pond, in the US IPOs
are expected to ramp up during the
course of 2017.
Is the IPO the fast-track to water-heaven for shareholders and investors
or is there a darker and perhaps unseen
side to when a company seeks to be
listed on the Stock Exchanges of London
and New York alike?
THE AMERICAN DREAM
For those who might be more familiar
with acronyms such as WWTP, WFD
and CSO – it is probably worth a
reminder that an IPO or Initial Public
Offering is when the shares of a
company are sold to institutional
investors that, in turn, sell to the
general public for the frst time. And
that through this stock market launch
process, the privately held company
metamorphoses into a public company
or ‘goes public’.
The New York Stock Exchange is
by far the world’s largest by market
capitalization of its listed companies
at well over $30 trillion, and is actually
deeper and more liquid than the world’s
50 smallest exchanges combined. Tom
Farley heads up the NYSE and points
out that that people have been to going
to Wall Street for 225 years “to raise
money and live the American dream”.
He insists that after a rough 2016,
IPOs are looking up this year. Nasdaq
CEO Adena Friedman has similarly
expressed optimism about IPO activity
ahead, highlighting the fact that “there’s
a very healthy pipeline of companies
ready to go public”.
But Brexit, be it hard or soft, has
generated a dark and grey cloud of
uncertainty over the city of London
– anathema to investors who crave