Pre-IPO Convertibles

Pre-IPO convertibles are commonly issued by companies considering an IPO in the near-to-medium term. These convertibles are often seen as the last financing round before going public. Historically, the most common structure of a pre-IPO convertible automatically converts into equity at the time of the IPO, typically at a discount to the IPO price. However, a newer variation has emerged, where the security becomes a post-IPO convertible security with a conversion price set at a premium to the IPO price.

ICR Capital’s Convertible and Equity Derivatives Advisory team specializes in navigating the intricacies of pre-IPO convertibles. We work with our experienced Capital Markets Advisory team, comprising professionals with extensive backgrounds in ECM desks at major banks, and a collective track record of advising on over 1,000 transactions, including IPOs, follow-ons, block trades, and SPAC mergers. Our strategic approach sets us apart as we carefully consider the structure, terms, and potential impacts of your pre-IPO convertible on your IPO journey.