August 24, 2022
Louis Diamond Quoted
By Ryan W. Neal
An updated filing with the Securities and Exchange Commission appears to squash reports that Dynasty Financial Partners is shelving plans to make an initial public offering, though the firm may be rethinking how much it is looking to raise.
If Dynasty was canceling plans for an IPO, it wouldn’t make sense for it to continue disclosing this information, said Louis Diamond, president of financial advisor recruiting firm Diamond Consultants.
“Why would you want to keep giving competitors information and keep being transparent when you don’t have to?” Diamond asked. “It’s so expensive to go public, it’s not good business to call it off unless they are truly going in another direction.”
It isn’t unusual for firms to press pause on plans to go public, he added. For example, several companies did so during the pandemic.
The IPO market is on pace for its worst years in decades, having raised just $5.1 billion so far in 2022, according to the Wall Street Journal. IPOs typically have raised around $33 billion by this point in the year.
Dynasty could just be waiting for the market to thaw, Diamond said.
“At the end of the day, Dynasty is still a leader in the industry, their business metrics are really good, and if they did an analysis and thought going public was the right strategy, I don’t think anything has changed,” he said.