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Pexip introduces virtual roadshows in a move towards remote IPO

Pexip introduces virtual roadshows in a move towards remote IPO
Pexip introduces virtual roadshows in a move towards remote IPO

Pexip, from Norway, recently made an announcement regarding virtual roadshows in efforts to become the first European firm to complete its initial public offering (IPO) remotely, as it has been gearing up to meet the demand for video conferencing on account of coronavirus crisis.

Pexip rivals video conferencing software like BlueJeans and Zoom, and states that it is often used by the German government and US military. The company may light up a trail for its counterparts.

Apparently, turbulent markets on account of the economic impact of the COVID-19 pandemic along with the logistical hurdles of holding a deal remotely during the time of the lockdown in the majority of the world has dissuaded the firms from launching IPOs.

Pexip has decided to sell 17 million of its new shares at NOK 63 each (around $6.06) and has set an example of a company moving ahead with a listing in the middle of the crisis. The existing shareholders have been planning to sell about 17 million shares at a similar price which will take the total number to be raised in IPO to up to $206 million.

The volatility of the market is leaving many apprehensive but there has been major interest from the time Pexip had first announced the intention to list. The firm has reportedly lowered the risks by having enlisted cornerstone investors who had given their commitment to the deal before the launch itself.

The funds that are advised by Wasatch Global Investors, TIN Fonder, Capital Research and Management Company, and DNB Asset have already made commitments to subscribe to about NOK 1 billion of shares.

Chief executive officer and managing partner of ABG Sundal Collier Norway, Peter Straume said that the company had done the initial look meetings during January and February live, then it further switched to only video meetings.

 

Source Credit - https://www.hindustantimes.com/tech/zoom-rival-pexip-launches-lockdown-listing-with-video-roadshow/story-bbyj0LLVQ3ZEAyC6NewkoI.html

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Sunil Jha

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