US IPO Candidates Discouraged By Risk of Litigation, Red Tape

The risk of being sued after an initial public offering is one of the biggest concerns for potential US listing candidates, according to more than 150 executives surveyed by Bloomberg Intelligence.

The threat of class actions was cited as the number one reason why fewer companies than ever are going public, followed by the IPO process itself, and regulatory burdens, the survey showed. BI’s Future of IPOs report, published Wednesday, addresses a dynamic that has contributed to the number of US-listed public companies plunging 50% from their 1996 peak.

“The IPO process could be sped up,” said Larry Tabb ...