Alternative Equity Offering Structures Provide Access To Capital As Markets Remain Challenged

Global equity markets continue to navigate the dueling impacts of inflation, rising interest rates and a slowing economy. While the market for initial public offerings initially showed signs of a recovery in early 2023, the IPO market remains relatively sluggish and has faced set-backs such as uncertainties in the banking sector.¹ Meanwhile, the follow-on equity markets have remained robust as compared to the IPO market, as existing public companies relied on an array of offering structures to raise equity capital in the public markets in 2022 and 2023. Below, we discuss some of the more prominent equity-raising structures being utilized today by public companies, including by special purpose acquisition companies (SPACs) and former SPACs, which face particular challenges when it comes to raising capital.