Market Overview

EXCLUSIVE: OTC Markets CEO Answers the Question: 'Is it Wise to Go Public?'

EXCLUSIVE: OTC Markets CEO Answers the Question: 'Is it Wise to Go Public?'

From Textura (NYSE: TXTR) and LightInTheBox (NYSE: LITB) to RCS Capital (NYSE: RCAP) and Epizyme (NASDAQ: EPZM), several companies have gone public this quarter.

Many, however, will remain private. Is that wise? Are companies performing any better for their decision to avoid the public market?

"I think that the idea that being public is a bad idea for companies…I don't think it's an idea that's based on reality," Cromwell Coulson, CEO of OTC Markets Group (OTCQX: OTCM), told Benzinga. "The most trusted, the most sustainable and the most successful companies are public. Transparency builds trust and the whole process of having visibility of your business model, your financial number is out there so you've got comparable valuations. Liquidity for your investors…more access to capital. And finally the trust is so important."

Coulson, who is a big fan of biotech and technology firms, hopes that he can help pave the way for additional players to go public.

"We're hoping that since we've created an on-ramp instead of a big jump that more companies will want to be public," he said. "More exciting technology or bio-tech companies will think, 'Hey, let's use this on-ramp to being public.'"

Coulson spoke fondly of Organovo Holdings (OTCQX: ONVO), which OTC Markets Group interviewed for its June newsletter.

"That's a really cool company," said Coulson. "It's a biotech company. They're trying to create [human] tissue printing machines. They were one of the MIT Technology Review 50 Most Disruptive Companies. It's a very interesting story. It's an early-stage biotech, so there's of course risk in the science and execution. It's a story that's been very interesting to investors."

Gigamon (NYSE: GIMO), which had its IPO today, is up more than 33 percent above the firm's market debut. Aratana Therapeutics (NASDAQ: PETX) and Coty (NYSE: COTY) are slated to have their IPOs on Thursday, June 13. Regado Biosciences (NASDAQ: RGDO) will debut on Wednesday, June 19, followed by Votorantim Cimentos S.A. (NYSE: VEBM) on Thursday, June 20.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ

Posted-In: Cromwell CoulsonNews Entrepreneurship Management IPOs Success Stories Tech General Best of Benzinga


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