NEW YORK, Oct. 14, 2013 /PRNewswire/ -- The Deal, TheStreet's (NASDAQ: TST) institutional business, issued a quarterly report that showed the small-cap equity financing market continued its resurgence in the third quarter with double-digit increases in the numbers of private investments in public equity (PIPEs), registered direct offerings and initial public offerings (IPOs) as the broader stock market rose. Activity by special purpose acquisition companies (SPACs) also increased in the quarter, with four SPACs completing IPOs and three filing for IPOs. Even the number of reverse mergers increased, although from decidedly depressed levels.
"The strong showing that we saw in the third quarter may be a harbinger of good things to come in the next one," said Dan Lonkevich, Senior Editor for The Deal. "Additionally, the fourth quarter could also benefit from the Securities and Exchange Commission lifting the ban against general solicitation and advertising of private placement offerings."
Some highlights from the report include:
- The number of PIPE deals rose by 16.9% in the third quarter to 276 worth a total of $10.9 billion from 236 deals worth $12 billion, a year earlier. It was the second quarter in a row that the number of PIPEs rose.
- The number of unregistered PIPEs rose 16.7% to 182 deals worth $3.69 billion from 156 worth $7.07 billion, a year earlier.
- The market for registered private placements expanded by 17.5% to 94 transactions worth $7.17 billion, from 80 deals worth $4.94 billion. That includes 27 confidentially marketed public offerings worth $1.1 billion, compared with 17 CMPOs in the year-earlier quarter worth $780 million.
- Common stock was the security issued in 158 of the recent quarter's PIPE transactions worth a total of $3.67 billion. That compares with 122 worth $6.93 billion a year ago.
- Convertible debt was issued in 34 of the recent quarter's PIPEs worth $322.5 million, compared with 29 worth $374.2 million. Convertible preferred stock was issued in 22 PIPEs worth $588.1 million in the recent quarter, up from 18 worth $617.8 million.
- At-the-market offering facilities were provided to companies in 37 transactions worth up to $5.68 billion, compared with 31 deals worth up to $3.64 billion.
- The number of equity-line transactions totaled 14 deals worth as much as $503 million, down from 19 worth $255.2 million.
- At least 10 PIPEs during the quarter raised at least $100 million. That does not include at-the-market offering facilities and equity lines, which the companies might not fully draw down. Another 14 PIPEs raised more than $50 million.
- The third quarter's deals raised an average of $39.3 million each, down from $50.9 million, a year earlier.