A bunch of readers took issue with last week’s post on venture-backed IPOs, and my belief that the death of small company IPOs has been greatly exaggerated. Specifically, there were complaints that I was focusing too much on large issuers like Groupon (GRPN), while ignoring the difficulties companies with revenue of under $100 million (some folks put the threshold at $50 million).
For example, here was an email from William B:
Well, this week may put that complaint to the test. Clovis Oncology is set to price a $160 million offering, despite having a whopping $0 in revenue. Also on the docket is Lashou Group, which only reports $16 million in revenue for the first nine months of 2011. And InterMolecular, with $26 million through the first nine months of 2011. And, just to be sure this isn’t a one-week trend, pre-revenue BioAmber today filed for a $160 million offering.
Maybe this week’s low-rev companies don’t price. Or maybe they do so, but only with massive insider support.
But, on the other hand, what if they do price with outsider support. In that case, what say you dissenters?
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