IPOs Still Driven by Big Firms Despite JOBS Act -- Market Talk


4/29/14 6:40 PM ET (Dow Jones)
18:40 EDT - Two years ago, the JOBS Act set out to boost capital for small private firms, in part by making it easier for them to go public. So far this year IPOs are up 70%, by one measure, with tech IPOs forecast to hit their highest level in a decade. So is the JOBS Act working? Not really, says University of Florida finance professor and IPO tracker Jay Ritter. The IPO boom, he says, is being driven by large biotech firms, while "very few small tech companies are going public." That's because, for these firms, getting big fast has never been more important and going public is just too costly. Ritter says he doesn't think the JOBS Act "did much to change this." (angus.loten@wsj.com; ruth.simon@wsj.com)





(END) Dow Jones Newswires
April 29, 2014 18:40 ET (22:40 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.

No comments:

Post a Comment