Unregistered Block Volume Steady in an Otherwise Dormant ECM Market
While ECM activity overall is down significantly from prior years, unregistered block issuance has remained steady even when compared to the record high volumes of 2021.
Through April 30, CMG tracked 56 unregistered blocks with an average discount of (4.3%). Over the same time period in 2021, CMG tracked 64 unregistered blocks with an average discount of (4.1%). Considering the market weakness, it’s notable to see how similar the average discounts are year-over-year. Through April 30, CMG data shows (by dollar volume) that the Communication Services sector comprised nearly 26% of all unregistered block volume.
Unregistered block discounts vary significantly by deal size as evidenced by the fact that deals under $250 million in size carry an average discount of (4.1%). In contrast, the two block deals over $1B in size had an average discount of (7.0%).
Energy unregistered block deals are up 17.9% on average from their offer price through April 30th. Tufin Software is the lone Technology unregistered block that’s currently up from it’s offer price (51.9%).
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