Proskauer IPO Database
2016: Eight IPOs (12% of 2016)
2015: Eight IPOs (9% of 2015)
2014: 14 IPOs (12% of 2014)
2013: 11 IPOs (11% of 2013)
Total: 41 Financial Services IPOs

In 2016, the financial services sector IPOs analyzed include: two insurance-related companies, four bank holding companies, an exchange operator and an investment services company.

All Over the Map – One might expect issuers in the financial services sector to be concentrated with headquarters in the world’s financial centers, such as New York or London. Instead financial services issuers in 2016 had home bases in Hawaii, Kansas and Tennessee, among other mid-western and southern states. In addition, two of the financial services issuers in our study were FPIs, with headquarters in Argentina and China.

Disclosure of Sector-Specific Financial Measures – While issuers in the financial services sector disclose Adjusted EBITDA less frequently than any other sector, these issuers disclose a variety of other non-GAAP financial measures and other financial metrics, including adjusted net trading income, adjusted net income, efficiency ratios and tangible stockholders equity. In addition, bank holding companies typically included selected loan metrics and asset quality and capital ratios.

Fewest Comments – Financial services issuers received the fewest first round SEC comments as compared to all other sectors. These issuers had the fewest average (16) and median (16) comments and also had the lowest counts for fewest (two) and highest (30) comments. This trend continued for the average number of comments in the second and third round of comments, as well. Financial services issuers also received the lowest number of financial and accounting comments, which may be explained in part because issuers in the financial services sector tend to be subject to overlapping regulatory regimes and government agencies.

Shortest Time to Pricing – IPOs in the financial services sector had the shortest average number of days from first submission/filing to pricing with 177, as compared to an average of 227 from all other sectors.

More Financial Information is More? – In 2015, our survey indicated that IPO issuers in the financial services sector might be moving towards less financial disclosures. That was not the case in 2016 as only 20% of financial services EGCs included two years of audited financial statements, as compared to 80% for all other EGCs. In addition, 60% of financial services EGCs included a full five years of selected financial statements, as compared to 7% for all other EGCs. Financial services issuers also, generally, had fewer accounting or internal control issues and all had positive net income.

Increased Secondary Component – 75% of financial services IPOs had a secondary component, compared to 17% for all other sectors. Since 2014, financial services has had more IPOs with a secondary component than for all other IPOs. In 2016 and 2015, financial services IPOs with a secondary component had management purchases in 33% of IPOs, compared to 20% in 2016 and 29% in 2015 for all other IPOs. Also, there was no insiders purchasing in financial services IPOs surveyed in 2016.

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