The IPO market appears to be improving this year, although factors still exist that will keep it from growing too rapidly. Company managers and owners must be ready to give up some control to shareholders when going public. This can deter some companies from transitioning to a publicly traded company until they require the capital for growth.
For that choose to prolong the jump to an IPO, private equity markets and venture capital have matured to fill the gap. Companies choosing to stay private longer can finance debt with relatively low interest rates providing an attractive option for growth. The private equity business sector also received additional boosts with the Reg A and crowdfunding rules that went into effect over the past couple years, which made it easier to raise capital without taking the step of a public IPO. The regulations of the Sarbanes-Oxley Act of 2002 is another factor that makes staying private even more attractive as public companies must invest time and accounting expertise to comply.
Opportunities Exist with Special Purpose Acquisition Company (SPAC)
Another opportunity exists for experienced traders willing to do research, which is a Special Purpose Acquisition Company, (SPAC). This is an interesting hybrid of public and private funding that is growing in the markets today. An SPAC IPO is essentially a blank check for the managers to go out and acquire private companies.
An SPAC is usually formed by people with in-depth knowledge typically in a specific industry, who are confident that they can identify profitable acquisition opportunities. 100% of the money raised through the IPO is deposited into a trust account to fund the SPAC, giving reassurances to investors.
Great Point Capital offers professional services for active including Proprietary Trading, Index Options and Quantitative Trading services. Our team has experience trading in stocks, futures, IPOs and SPAC’s. We are one of the few firms with the ability to offer access to Takion trading software, enhancing your trading performance.
Great Point Capital has been serving the trading community since 2001, with 100+ prop traders actively trading the firm’s capital. Our mission is to lead the equity day trading community and give traders the support and tools necessary to make the most of their trading careers. Contact us today in either our Chicago Office, or our Austin Office, to learn more about how we can successfully trade together with high performance results
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