The OpenIPO® Auction.
Simplifying Public Offerings through Transparency and Innovation
Choose a different path. Open access and efficient price discovery lowers the cost of capital and allocates shares to long-term investors. We have completed 25 auction-based IPOs with deal sizes ranging from $10 million to $1.3 billion.
Our ClientsPricing
A transparent and market-based methodology.
Allocation
Shares are placed with long term investors — not those looking to 'flip'.
Performance
A focus on sustainable returns instead of short term 'pop'.
Participation
Invite and capture demand from all types of investors.
Partnership
Your ally in the IPO process, whether as an underwriter or an issuer auction advisor.
"What if we could skip the bankers, the offering price, the road shows and the endless debate about what will happen on the offering date and just go directly to the offering?"
Past Clients
Superior Long-Term Performance
We have completed 25 auction-based IPOs with offerings ranging from $10 million to $1.3 billion. While traditional IPOs are typically priced to 'pop' in early trading, our measure of success is aftermarket sustainability over a longer horizon.
For deals priced since August 2004, WRH+Co Auction IPOs demonstrate superior six-month, one-year and cumulative average returns versus traditional managed underwritings.
Source: Dealogic and CapitalIQ — Includes common shares IPOs listed on the NYSE, Nasdaq or AMEX since August 2004 and excludes Specialty Acquisition Corps., Closed End Fund offerings and Demutualizations. Acquired companies’ current performance is based on the acquisition price per share at close of transaction. Data is current as of August 22, 2013.
Delivering Results as Your Partner: Two Options
Underwriter or Co-Manager: End to End Investment Banking Services
Issuer Auction Advisor: Facilitating Fair Price Discovery
If our values and goals are aligned with yours, we want to be an advocate for your company and help you avoid the pitfalls of the traditional IPO process. Whatever our role, it's possible for you to use the OpenIPO auction process.
"We believe that venture-backed issuers would benefit from including non-bulge bracket firms when selecting bookrunners for their IPOs."
What if access to lower-cost capital is possible for your company?
It’s worth a conversation to find out. Simply contact us directly.
P: (415) 551-8680
ipo@wrhambrecht.com
Start a ConversationFor a full evaluation of your company, the following documentation is needed: 1) a two page description of your company 2) two years audited financials and 3) a twelve month financial projection.
Getting Started FAQ
What can I do to start preparing for an IPO?
Most importantly your company leadership should be on the same page about an IPO. If that's the case, you can get a head start by:
- certifying your financial statements
- creating a first draft business write up with financial forecasts
- begin meeting with the buy-side (it's now legal to test the market, and we can help you do just that)
- and choose your underwriter
When is the right time to take my company public?
Assuming your company is able to raise a minimum of $15 million, there are great examples of success when a company goes public early including Intel, Adobe, and Genentech.
How should I evaluate and choose an underwriter?
The underwriting business is long on mythology and short on fact. We are analytical, quantitative, and willing to share our data with you. We think it's important you ask us the hard questions, for instance, "What is the historical first-day pop from your underwriting?" and, "How do you attract long-term investors to my company?"
If the auction IPO process is so great, why isn't everyone doing it?
Push Back from Large Investment Banking Firms
IPOs are one of the last major profit centers for investment banks. A traditional 7% underwriting fee has been maintained by a small group of underwriters that have resisted pressure from issuers with the exception of some very large offerings. The real profitability comes from the indirect flow of business generated by a large first day "pop" which creates significant short-term profit for the underwriter's customer base. A significant part of this eventually flows back to the underwriter in the form of commissions or fees.
The Agenda of Private Equity Investors
Venture Capital and Private Equity investors want to distribute the newly-public stock to their investors as soon as possible, which normally occurs six months after the IPO. As a result, some VC and PE firms focus on maximizing the stock price during this initial period, which can conflict with the long-term investment agenda and goals of company management. Then, after shares are distributed at six months, these private owners typically move on and leave company management to deal with the aftermarket.
What additional questions do you have?
Please contact us or submit suggestions via our FAQ Page.