June 20, 2024

IPO News

From Public to Private: List of Firms Making the Switch

After realizing that going public isn’t always a cakewalk, many companies are quickly reverting to private ownership. Among the list of public companies going private between 2020-21, ten firms committed to selling themselves to private groups. Only eight companies that went public in 2018/2019 have subsequently moved to private.

The poor performance of the initial public offerings between 2020-21 is a major factor in choosing a buyout rather than remaining public. As a result, private equity investors looking to deploy large sums of capital will find the company attractive, while buyout firms holding residual holdings who are under obligation to return cash to their investors will have an opportunity to cash out.

Weber Inc., a manufacturer of barbecue equipment, agreed to be taken private for $8.05 per share in 2018, down significantly from the company’s initial public offering price of $14 just 18 months prior. In February, data analytics software business Sumo Logic Inc. reached a purchase agreement with private firm Francisco Partners for 12.05 dollars per share, down from the $22 IPO price.

 

Bankers, investors, and CEOs all indicate we can expect more of the same in the months ahead. The Wall Street Journal said that Cvent Holding Corp., CVT decreased by -3.93%; red down indicating triangle, which went public in 2021 following years of control by Vista Equity Partners, reportedly considering a deal that could value the company at more than $4 billion. After a $5.3 billion merger with a specific acquisition company, Cvent entered the public markets.

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