[ Latest Headlines | Market Overview | News Alerts ]
SAN DIEGO, Oct. 9 /PRNewswire/ -- Although the traditional initial public offering and secondary offering markets have been all but closed to most public companies, the market for PIPE (Private Investments in Public Equities) financings has remained a viable capital-raising alternative, even after September 11th, according to DirectPlacement, Inc. (OTC Bulletin Board: PPIM - news), a leading financial technology firm and the acknowledged leader in information on PIPE financings.
In fact, there were more investment dollars available for PIPE deals than there was deal flow, according to Brian M. Overstreet, president and chief executive officer of DirectPlacement, which also is an investment banker in PIPE financings. He added: ``We have some 150 institutional clients that are prepared to invest in the PIPE market, which they like because of its speed and attractive current valuations.''
Mr. Overstreet said there have been 46 PIPE financings after the terrorist attacks on September 11th that raised a total of $367 million. He added: ``The strength in the PIPE market is continuing in October. Since September 11th, we have closed a small PIPE for an existing client and have been engaged by two new clients for substantially larger PIPE transactions.''
DirectPlacement is the operating subsidiary of PPI Capital Group, Inc. Its PlacementTracker data is the only source summarizing all PIPE financings since 1995.
``There is no doubt that the PIPE market has become a mainstream financing channel for public companies,'' Mr. Overstreet said. ``In fact, because of the proven market of institutions ready to participate in PIPE financings and because the costs generally are lower than conventional underwritings, it is the preferred route for many companies of all sizes.
``What is clear from our data is that many companies are only now learning that the PIPE market is a viable and efficient alternative for raising capital-often from the same institutions that were the ultimate purchasers that provided the same companies funds in traditional offerings.''
Mr. Overstreet noted that the financings after September 11th have ranged from $0.5 million to $101.0 million and were for companies with market capitalizations ranging from $1.9 million to more than $600 million. The securities issued in the PIPE financings after September 11th ranged from common stock to convertible preferreds to structured equity lines, Mr. Overstreet said. The issuers included multiple companies in the communications, energy, consumer, healthcare, technology and energy sectors as well as a recycling company and a mining company. The purchasers were primarily institutional investors.
DirectPlacement, through its wholly owned broker-dealer subsidiary DP Securities, Inc., provides technologically sophisticated investment banking and information services to middle-market companies and institutional investors. Through its PlacementTracker.com data service, DirectPlacement has become the nationally recognized, accepted source of data on the PIPE market. For further information, please visit the DirectPlacement Web site at http://www.directplacement.com or the PlacementTracker Web site at http://www.placementtracker.com.
Safe Harbor Statement:
Statements in this press release that are not statements of historical or current fact constitute ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties readers are urged to consider statements labeled with the terms ``believes,'' ``belief,'' ``expects,'' ``intends,'' ``anticipates'' or ``plans'' to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
SOURCE: DirectPlacement, Inc.
|More Quotes and News:||PPI Capital Group Inc (OTC BB:PPIM.OB - news)|
|Related News Categories: banking|