Monday, September 11, 2000
In hot equity markets, U.S. companies traditionally have not
been bashful about floating an IPO and then returning in short order with a
follow-on. But European biotech companies still face the challenge of convincing
investors that it's important to seize the moment when money is available. The
current follow-on situation in Europe looks tight, and it is near on impossible
to return to market within U.S. time scales given hurdles posed by regulators,
investor attitudes, liquidity and a basic demand for new public companies.
The current financing window has not been particularly accommodating
to follow-on deals in the U.S. either. But the list includes three U.S. companies
that raised successful follow-on financings within six months of their IPOs,
all in March. In Europe, two IPO companies waited nearly a year before going
back to market (see "Double Dipping").