Growing Number of IPO Bookrunners
Today's report focuses on the growing number of bookrunners on U.S. IPOs under $500m. In the last ten years, the number of bookrunners on IPOs has more than doubled. Though underwriting spreads remain steady, the larger consortiums have compressed the median fee per bookrunner by 40%. This trend, along with looming threats like IPO automation, will increase the pressure on underwriters to cut costs.