2023 Mid-Year Technology and Life Sciences PIPE and RDO Report

In this issue of the 2023 Mid-Year Technology and Life Sciences PIPE and RDO Report, we present analysis related to 87 private investments in public equity (PIPEs) and registered direct offerings (RDOs) by U.S.-based technology and life sciences companies between January 1 and June 30, 2023. The report is limited to transactions in which the company raised at least $10 million and had at least one closing in the first half of 2023.

PIPEs and RDOs can be good alternatives to traditional underwritten offerings, particularly during periods of market volatility, because they can be negotiated discreetly and publicly announced after the parties agree to terms. However, given the lack of company leverage (usually) and near-term illiquidity of the securities sold, the cost of capital is typically higher for PIPEs than underwritten offerings. Because an investor receives freely tradable securities in an RDO, the securities are often sold at less of a discount than in a PIPE; in the first half of 2023, the security price for PIPEs surveyed was an average of 91.1% of the company’s common stock price, while the security price of RDOs surveyed was an average of 97.1%.

Read the 2023 Mid-Year Technology and Life Sciences PIPE and RDO Report.