NEW YORK, July 31, 2013 /PRNewswire/ -- The Deal, TheStreet's (NASDAQ:TST) institutional business, today issued a quarterly report that showed the small-cap and microcap equity financing market mounted a resurgence in the second quarter as the broader equity markets rose. The number of private placements of equity by U.S. public companies (PIPEs) rose 6% from a year earlier. Initial public offerings (IPOs) almost doubled and the number of follow-on offerings increased by 43%. There was also more activity by special purpose acquisition companies (SPACs).
"In general, companies were more willing to offer equity as the Dow Jones Industrial Average gained 2.31% during the second quarter and the Standard & Poor's 500 gained 2.82%," said Dan Lonkevich, Senior Editor for The Deal. "The dollar amount raised was the most in a quarter since 2008."
Some highlights from the report include:
- Overall, there were 281 PIPEs worth $13.6 billion that were announced or completed during the second quarter, compared with 264 transactions that raised $12.6 billion in the year-earlier period.
- IPO activity almost doubled in the second quarter with 61 U.S.-listed deals raising $14.6 billion. That compared with only 34 IPOs raising $23.3 billion a year ago. The year-ago figures included Facebook Inc.'s $16 billion initial share sale.
- The second quarter saw resurgence in the moribund market for SPACs with one SPAC filing for an IPO and two completing IPOs. There were no IPOs by SPACs in the year-earlier quarter.
- There were 27 reverse mergers in the second quarter, where private companies went public by merging with U.S.-registered shell companies.