PIPEs around the world
Public investment in private equity (PIPE) is a financing form growing in popularity in the U.S., recently surpassing seasoned equity offerings in number and value. Research to date is highly focused on the U.S., with little attention paid to international markets. We use newly available data to examine PIPE deals in Hong Kong, Australia, Canada, and the U.K. We document similarities and differences relative to the U.S. market. PIPE firms tend to be small, high-growth firms with poor accounting and stock performance prior to PIPE issuance. However, these stylized facts do not hold uniformly across the exchanges we study. We also document a lack of significant market reaction to the announcement of PIPE deals on these exchanges.
Finance and General Business
Haggard, K. Stephen, Ying Jenny Zhang, and Tao Ma. "PIPEs around the world." The Journal of Private Equity 12, no. 4 (2009): 57-68.
Journal of Private Equity