Actionable Ideas for Companies and Sponsors
Unregistered Institutional Private Offerings (U-IPOs) as a Source of Growth Capital or a Path to Monetization
Unregistered Institutional Private Offerings (U-IPO) are large ($150 million to $1 billion), pre-IPO placements of equity, that are broadly placed with traditional institutional public market investors. These investors do not require any special terms or any board seats. The only requirement is an agreement to publicly list the U-IPO security within a defined time period, typically 18 to 24 months. This listing can be achieved either through a traditional IPO or through a direct listing, leveraging the base of long-term, institutional investors that has already been established in the U-IPO.
While the U-IPO is a broadly applicable and flexible product, there are two major reasons clients choose this financing alternative. First — speed to capital — where capital can be raised for a specific need in as short a timeframe as eight weeks. This is especially important when a company is looking to meaningfully accelerate their business through near term capital deployment, either through an acquisition or organic opportunities. Second — sponsor or owner liquidity — where the issuer can sell up to 90% of an ownership stake in one offering, a far larger amount than the IPO market can typically accommodate. Jefferies is a leader in U-IPOs with a dedicated team of specialists with over 38 years of experience in this product.