Reading Time: 1 minute “Uber Technologies Inc. shares hit an all-time low Wednesday as the ‘lockup’ period following its May initial public offering ended, delivering a blow to a company that has struggled to satisfy investors,” writes The Wall Street Journal. Cordell Eminent Scholar Chair Jay Ritter commented on the shares traded after the lockup period ended and more in this story from The Wall Street Journal.
Reading Time: 1 minute “Spotify announced Monday that its finance chief, Barry McCarthy, 66, would retire in January. McCarthy helped take the music-streaming giant public last year with an unconventional approach that skirted around the traditional IPO process and investment bank middlemen. In a risky move, McCarthy circumvented the traditional initial public offering, its roadshow and underwriters’ fees, and instead executing a direct listing, a process where shareholders sell existing shares directly to the public without the company going through an intermediary. The tactic
Reading Time: 1 minute “As privatisations spread, investment banks such as Goldman used a new technique called book-building to ramp up enthusiasm [for IPOs]. Rather than only tapping retail investors, they allocated blocks of shares to money managers such as Fidelity Investments, increasing the pool of capital available. Since then, the American IPO model has conquered the world,” writes The Economist. Cordell Eminent Scholar Chair Jay Ritter comments on how the underpricing of IPOs in America has left billions, yes, billions, on the table in
Reading Time: 1 minute “Saudi Aramco — the state-run oil giant — is reportedly delaying its initial public offering, which Saudi Arabia has valued as high as $2 trillion,” writes Marketplace. “Despite the delay, the oil giant is planning on issuing a prospectus, giving investors some details about what’s going on under the hood of the world’s biggest energy company. A prospectus is a pretty important part of any initial public offering. But for this particular company, investors are going to be paying extra
Reading Time: 1 minute With lock-up periods set to expire for companies that went public this year, like Uber, Pinterest and Zoom, these companies may now have to worry about a selling flood on top of already poor-performing IPOs. Cordell Eminent Scholar Chair Jay Ritter comments on how lock-up periods might affect the valuation of these stocks. See what he had to say in this story from the Financial Times.
Reading Time: 1 minute As traditional initial public offerings struggle, Cordell Eminent Scholar Chair Jay Ritter spoke at an event hosted by UF alumnus and venture capitalist Bill Gurley (BS ’89) about the benefits of direct listings. The event, titled “Direct Listings: A Simpler and Superior Alternative to the IPO,” highlighted Ritter’s research, which shows the average first-day gain for 88 IPOs priced at $5 or higher so far this year is 24 percent, the highest since 2000. Read more about the event and Ritter’s
Reading Time: 1 minute As a series of high-profile companies look to make their debuts on the market this year, Cordell Eminent Scholar Jay Ritter shares his expert advice on the impact these IPOs will have with news outlets like Bloomberg, The Wall Street Journal, Financial Times and Fortune. See what Ritter had to say about the IPOs of companies like Peloton, WeWork and more. Unprofitable companies raising IPO cash – Bloomberg (30:07) Endeavor pulls IPO after Peloton’s poor debut – The Wall Street
Reading Time: 1 minute “How should retirees respond to the steadily growing drumbeat of stories about an imminent recession?” questions MarketWatch columnist Mark Hulbert. In this opinion piece, Hulbert shares what he think’s retirees should consider if they believe a recession is coming, in part relying on research, titled “Is Economic Growth Good for Investors?” from Cordell Eminent Scholar Jay Ritter. See how Ritter’s research helps Hulbert form his advice in a story from MarketWatch.
Secrets don’t make friends: New research shows hedge funds gain information advantage from unique relationships with investment banks
Reading Time: 3 minutes GAINESVILLE, Fla. – Keeping a secret is often easier said than done, especially when there’s money on the table. For years, news outlets like The New York Times and The Wall Street Journal have written about investment banks allegedly giving their hedge fund clients preferential access to broad bank resources and information – information that could be used to gain an unfair advantage when it comes to trading stocks. While the world may never know the whole truth about what
Reading Time: 1 minute “WeWork has put its plans to go public on hold. The shared-office-space company pulled the plug on its initial public offering less than two weeks before its shares were likely to hit the market. Given all the skeptical headlines about WeWork while it was getting ready for its IPO — along with the struggling share prices of Uber and Lyft since they went public — investors are starting to get a little more cautious when it comes to IPO investing,”