New York, NY – This week, boutique London-based research provider, Independent International Investment Research, PLC (IIIR) is re-releasing its global IPO research service called GEO Monitor as signs that the IPO market is starting to pick up. This follows a disastrous 2008 when the number of global IPOs shrunk 61%. However, research by IIIR suggests that more than 150 companies are planning to raise at least $50 million in equity capital in new public offerings over the next 6 to 12 months.
The Details on GEO Monitor
IIIR’s new GEO Monitor service is targeted at institutional investors who are interested in investing in global IPOs, by providing research coverage of the complete life cycle of all IPOs that plan to raise more than $50 million in equity capital. The service will provide key news and data on all global IPO’s on a near real-time basis. Translation, collation, and screening of the key terms of all global offerings will also be provided to enable fund managers to identify the best investment opportunities around the world. In addition, GEO Monitor will provide preliminary IPO research on a limited number of names, with clients having the option of acquiring custom in-depth analysis on other target firms.
A few of the key features of the new service includes:
- IPO Calendar. This will list the companies that have announced the intention to go public, scheduled a date for the pricing, a date they expect to begin trading in the public market, and have undertaken all necessary filings with the appropriate exchanges.
- Newsflash service. This will provides daily up-to-date news and commentary on all the companies in the IPO calendar, as well as identifying any new announcements or withdrawals.
- Preliminary IPO Research Reports. This will include detailed company analysis with subscription recommendations for any issue selected by paying clients.
- Distribution. All information and research will be available on a “pull” basis from the firm’s website, or on a “push” basis via e-mail.
Clients may purchase the GEO Monitor service in one of two manners, either on a “pay per view basis”, or as part of a bundle which includes a specific number of IPO research reports. For more information on the GEO Monitor service, please contact the firm directly at http://www.iirgroup.com/contact.
The Competition for IPO Research
Independent research providers have one very important advantage over investment banks in providing pre-IPO research and information – they typically are not restricted from publishing research during company “quiet periods”.
Currently, there are a significant number of independent research providers providing coverage on the US IPO market, including firms like Renaissance Capital (www.ipohome.com), IPO Profiles, and IPO Monitor. In fact, in the past few years, even venerable Chicago-based mutual fund and equity research provider Morningstar has gotten into the game by releasing an IPO research service.
However, investors have traditionally found it much harder to get pre-IPO information and research on companies domiciled outside of the US due to language barriers and the scale and disparate nature of the non-US IPO market. And though we have identified a few firms that focus on IPOs in specific countries (like India or China), we have not found consistent and broad independent research coverage on a large universe of non-US company IPOs. As a result, we think this should give IIIR’s GEO Monitor service an advantage as the global IPO market starts to heat up in the next 6 to 12 months.
Keys to Success
Besides scaling the research coverage of the new GEO Monitor product, the keys to success for IIIR, as it is with most independent research products, will be solving the distribution (sales and marketing) problem. However, given the large number of investment banks and agency brokerage firms that have started partnering with alternative research firms to provide distribution services to the buy-side, we would not be surprised if IIIR finds a partner who is interested in helping them resolve this issue.