Sock maker Bombas is the latest company preparing to ride the ESG investing wave, with the certified B Corp reportedly considering an IPO as soon as this year. It would join Greek yogurt brand Chobani (CHO) in the IPO pipeline, which filed last November as a public benefit corporation (PBC) to raise an estimated $1.5 billion.
To date, the IPO market has led the way in bringing PBCs and B Corps to market: Since 2017, 14 PBCs and B Corps have gone public via IPO, direct listing, or SPAC merger, compared to just three public market conversions, all of which were completed last year. While the PBC and B Corp designations are an imperfect test of a company’s ESG bona fides, they currently serve as one of the market’s best measurable metrics.
2021’s crop of PBC and B Corp listings had once outperformed other IPOs, but currently average a -50% return, well below the broader 2021 average of -28% from IPO. Some shareholders are willing to accept lower returns to promote positive social impact, while others...
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