NEW YORK, April 28, 2014 /PRNewswire/ -- The Deal, TheStreet's (NASDAQ:TST) institutional business, has issued a quarterly report that shows the small-cap and microcap equity financing companies returned in force to the private-investment-in-public-equity (PIPE) market in the first quarter, as the number of PIPEs increased 42.1% to 344 worth $14.2 billion from 242 worth $10.3 billion in the same period of 2013.
"The increased activity was helped by a rising stock market and a slowly improving economy and increased investor appetite for risk," said Dan Lonkevich, Senior Editor for The Deal.
Some highlights from the report include:
This was the most active first quarter for PIPEs since 2007 – before the financial crisis and Great Recession – when 391 PIPEs raised $12.3 billion.
The number of unregistered PIPEs increased by 58% to 226 deals worth $6.35 billion from 143 worth $2.78 billion, a year ago.
Registered direct offerings increased by 19.2% to 118 worth $7.89 billion from 99 worth $7.5 billion. Of those, 42 were confidentially marketed public offerings (CMPOs) that raised $1.8 billion. That compared with 28 CMPOs that raised $1.07 billion in the first quarter of 2013.
35 PIPEs raised at least $100 million, including the largest deal by coffee maker producer Keurig Green Mountain Inc. The company, with a market capitalization of $15.4 billion, raised $1.25 billion in a PIPE to fund a stock-repurchase program.
35 (ATMs) raised $5.07 billion, down from 40 ATMs raising $5.42 billion, a year ago.
Equity-line PIPEs totaled 20 deals worth up to $230.3 million, compared with 12 worth up to $239.7 million.
Roth Capital Partners LLC was the most active PIPE placement agent during the quarter, followed by Cowen & Co., Maxim Group LLC, H.C. Wainwright Co. and Piper Jaffray & Co.
The Deal, a business unit of TheStreet, has been serving corporate dealmakers, advisers and institutional investors the most sophisticated analysis of the deal economy since 1999. Our transaction information service, The Deal Pipeline, is powered by a newsroom of senior journalists who offer proprietary research and reporting across M&A, bankruptcies, auctions and financings. It includes a breaking news service, First Take; daily and weekly sector newsletters; The Daily Deal, a 2x daily report of the day's top stories; a research center with over a decade's worth of intelligence and a database of over 100,000 deals; and an iPad & iPhone app. Our marketing & media services group produces the industry's leading forecasting event, The Deal Economy, held annually in New York City in addition to industry webcasts and integrated marketing programs. For more information, visit www.thedeal.com