A Private Investment in Public Equity (PIPE) is a transaction through which a listed entity raises capital by private placement of its securities with one or more investors; without going through the process of a secondary public offer.
A Private Investment in Public Equity (PIPE) transaction allows a public company to raise capital quickly and in a more cost-effective manner, without having to go through the regulatory and administrative processes involved in a public offer of securities.
A Private Placement is an offer or invitation to a select group of investors by a company to subscribe to its securities. In case of a public offer, this invitation to subscribe to the shares of the company is made to the public at large.
Leave a Reply