Warrington in the News Articles: page 23

An initial public offering is a once-in-a-lifetime moment for a company. Except when it isn’t. When Mobileye Global lists shares in its IPO next week, it’ll be for the second time.

Companies going public for a second or third time typically have more muted stock-market debuts than other IPOs, but they tend to outperform over the next three years, according to data compiled by Jay Ritter, Cordell Eminent Scholar at the University of Florida’s Warrington College of Business.

A SPAC that counts former US House Speaker Paul Ryan as chairman became the latest vehicle to be bailed on by investors who want their money back. Executive Network Partnering Corp. saw roughly 95% of its investors opt to swap their shares for $10 when they voted on a tie-up with oil and gas company Granite Ridge Resources Inc.

“Shareholders have an incentive to approve even a bad deal because the warrants can still have value,” Jay Ritter, Cordell Eminent Scholar, said. “And if the stock falls near $10 they can redeem and get the money back.”

Cordell Eminent Scholar Jay Ritter shares insights for this story on Nasdaq Inc. putting the brakes on the initial public offering (IPO) preparations of at least four small Chinese companies while it investigates short-lived stock rallies of such firms following their debuts, according to lawyers and bankers who work on such stock launches.

After James Corden was accused of being ‘nasty’, W.A. McGriff, III Professor Amir Erez explains why rudeness doesn’t pay.

Director of Energy Studies Ted Kury explains how critical it is to make electric grids more resilient before the next big storm.

“A key consideration with a complicated system like the electricity grid is understanding the rights and responsibilities of all stakeholders — from service providers and customers to the government,” Kury writes.

The tech firm wants to bring mainstream investors—and their advisors—into the IPO process, territory once reserved for favored clients, insiders and underwriters. But to take on Wall Street’s reliable revenue generator, many moving pieces will have to fall into place.

“Lots of people have complained for decades about how inefficient the process is for pricing and allocation in IPOs,” said Jay Ritter, Cordell Eminent Scholar, and a longtime researcher in the area of IPOs.

California has been generating the most initial public offerings of any US state every year since 2003. That streak could end this year unless the Golden State picks up the pace.

California’s change of fortune is explained largely by the drop in valuations among Silicon Valley’s tech startups, said Jay Ritter, Cordell Eminent Scholar. “It is almost entirely just a reset of valuations,” he said.

Money managers who oversaw blank-check companies kept making profits even in the face of significant losses to stock investors.

“There is no question that the sponsors had great returns at the same time that public market investors had very negative returns,” said Cordell Eminent Scholar Jay Ritter, who wrote a new paper, along with Minmo Gahng at the University of Florida and Donghang Zhang at the University of South Carolina, which found that stock-market investors in SPACs that merged with private companies since 2015 lost an average 37% of their investment a year after the merger through the end of September. At the same time, SPAC managers, known as sponsors, turned an average investment of about $8 million into about $54 million, giving them average annualized returns of 110% on their initial investment in the SPACs.

While U.S. Labor Secretary Marty Walsh says it’s “hard to say” if there will be an impact on the unemployment rate in the coming months, Clinical Professor and Richardson Fellow Brian Gendreau shares that while short-term impacts can be devastating to impacted areas, in the long term, there’s typically an increase in construction activity, which can spur employment.

If any electrical grid could ever be hurricane-proof, it would probably be here in the Sunshine State. Director of Energy Studies Ted Kury shares his insights on how the Florida electric grid was made more resilient in previous years thanks to investment from the state’s utility companies.