There were three initial public offerings in L.A. County in the first half of 2019, tracking closely with the local trend in recent years, according to a report from Ernst & Young.
The local companies listing publicly were El Segundo-based Beyond Meat Inc., a producer of plant-based meat substitutes, which raised $277 million in May; Cerritos-based online apparel company Revolve Group Inc., which raised $244 million this month; and Santa Monica-based Super League Gaming Inc., which raised $25 million in February.
“The numbers … represent a continuation of previous limited IPO activity,” said Scott Porter, a partner in the advisory practice for Ernst & Young’s western region, in Los Angeles. “We’ll have to wait and see how the rest of the year shapes up.”
In the broader U.S. West region, IPOs rose to 33 in the first half of this year — a jump from the last four years when the number of public offerings were below 30 in the West. Of the California companies that went public, most were based in Silicon Valley.
The numbers don’t include special purpose acquisition companies.
But Porter said growing uncertainty in global markets, driven by trade tensions, wavering growth projections and mixed signals on interest rates “is causing companies to think twice.” He added, “We are not seeing a rush to go public.”
Porter said he worries some private companies may opt to stay on the sidelines of the IPO market because of the approaching presidential and congressional elections.
Finance reporter Pat Maio can be reached at firstname.lastname@example.org or (323) 556-8329.
Correction: An earlier version of this story misidentified Scott Porter of Ernst & Young.
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