NEW YORK, July 15, 2014 /PRNewswire/ -- The Deal, TheStreet's (NASDAQ:TST) institutional business, has issued a quarterly report that shows that only 271 private-investments-in-public-equity (PIPEs) worth $10.4 billion were announced or completed in the second quarter, compared with 272 that raised $14.2 billion in the same period a year ago. The figures, generated with The Deal's PrivateRaise database, exclude PIPEs that raised less than $1 million and those by foreign-based companies that trade over the counter in the U.S.
"After two consecutive quarters of double-digit growth, the PIPEs market contracted in the second quarter of 2014 as a series of selloffs hit biotech stocks and other companies opted for public offerings," said Dan Lonkevich, Senior Editor for The Deal. "The decline is even more pronounced compared to the first quarter which produced 343 deals worth $14.5 billion."
Some highlights from the report include:
- 271 PIPEs worth $10.4 billion were announced or complete in the second quarter.
- The number of unregistered PIPEs totaled 177 worth $5.15 billion, versus 161 worth $5.66 billion a year ago.
- Registered direct offerings totaled 94 deals worth $5.27 billion in the quarter, compared with 111 worth $8.53 billion in the second quarter of 2013. Of the registered direct offerings, 25 were confidentially marketed public offerings (CMPOs) that raised a total of $470 million. That's compared with 24 CMPOs that raised about $700 million a year earlier.
- Healthcare remained the most active industry in the PIPE market, with 88 deals worth $1.26 billion, compared with 87 PIPEs worth $1.24 billion, a year ago. Energy was the second-most active industry in the recent quarter, with 36 deals worth $3.57 billion, followed by technology, with 31 PIPEs worth $1.45 billion.
- In contrast with the weak PIPE market, IPOs were strong with 84 deals worth $23.6 billion, compared with 61 deals worth $14.9 billion, a year ago. It was the third consecutive quarter of at least 72 IPOs.
- The number of follow-on offerings also increased 18.1% to 215 worth $58 billion from 182 worth $49.2 million.
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