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2019 Equity Capital Markets Outlook

2:10 Tommy Rueger and Alice Takhtajan in the Equity Capital Markets group at J.P. Morgan discuss the favorable market conditions driving the growing number of unicorn IPOs this year.

Tommy:

Market indices are up double digits and volatility remains quite low, and so the IPO market setup is quite strong. We’re expecting a number of Unicorn type offerings over the course of the year.

Alice:

2019 was somewhat off to a slow start, primarily driven by the government shutdown and the impact that it had in the SEC. We've seen that subside dramatically and activity has re-accelerated.

Tommy:

We’ve seen great diversity in terms of our overall pipeline. The level of innovation that we're seeing across sub sectors in healthcare is unlike anything that we've seen. Currently we have five IPOs in our overall backlog, 500 million and above, so the ability for investors to invest in larger scale businesses, I think will be interesting and a nice diversification from prior years activity.

Alice:

We expect a couple of Chinese companies, sizable technology companies, to tap the market in 2019. One of the key drivers that we think will continue to influence that activity is these companies' desire to list in a very global, large liquid market and really have access to that international shareholder base.

Tommy:

I think that the biggest element that we've seen of the process change has been management team's openness and willingness to spend time with the investor community, often times well in advance of the actual IPO itself. And so management teams have gotten more accustomed to engaging with these investors, helping educate them on their business the process of engaging with public investors has really never been as important as it is today.

Alice:

JP Morgan has the number one global equity capital markets practice. We are at the forefront of issuance, whether that's in the private arena or public equity. We really pride ourselves on advising our clients on the best path to raise capital, whether that's private capital or ultimately the path to IPO and beyond.

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