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Q4 Caps Off Strong Year for Reg A+

by Brandon Raatikka

Things continue to look up for Reg A+. In the fourth quarter of 2017, the SEC qualified 25 Tier 2 offerings, which (just like last quarter) set new quarterly record. Of the Tier 2 140 offerings qualified since the end of 2015 (and not subsequently withdrawn or requalified), the SEC green-lit 62% of them in 2017. We plotted the relatively steady growth in qualifications the top chart below the text of this post.

For the first time since the new Regulation A rules went into effect, a majority of issuers qualified in the quarter disclosed an intention to provide secondary liquidity for their shares. The OTC markets continue to be a popular destination, although we saw a significant spike in issuers that will seek a NYSE listing in Q4’s qualifications. 

One quarter a trend does not make, but it’s still interesting to note that median offering expenses for qualified Tier 2 offerings were 2.00% of the raise, significantly below the 6.21% median of prior quarters.

For more insight on where the money is coming from these deals, and what kind of Reg A+ offerings are being funded, see this clip of Blaine McLaughin, COO of VIA Folio, speaking at the Fintech World event in December.

Just as we’ve posted for the past two quarters, below is an interactive summary of FactRight’s Tier 2 Regulation A database, updated for offerings qualified through the end of the fourth quarter. The charts below are dynamic; if you click on a single data point in any chart, it will filter the data displayed on the sidebar at left and in the remaining charts. Hover your cursor over a chart for additional information.

 

 

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Filed Under: Regulation A+