PIPE
Business & Finance abbreviation · Finance
| Stands for | Private investment in public equity |
|---|---|
| Categories | Business & Finance |
PIPE stands for Private investment in public equity, a finance abbreviation.
Sale of shares or convertible securities by a publicly traded company directly to selected investors, such as hedge funds or private equity firms, usually at a discount to the market price. It lets companies raise capital faster and more cheaply than a public offering.
Example: The biotech raised $150 million through a PIPE priced at a 10 percent discount to Friday's close.
Usage notes
Pronounced "pipe." PIPEs became especially prominent in SPAC mergers in 2020 and 2021, when institutional investors committed capital alongside the SPAC trust. Because the shares are sold privately, the issuer typically registers them for resale with the SEC afterward.
Related abbreviations
More finance abbreviations
- OCF – Operating cash flow
- OpCo – Operating company
- OpEx – Operating expenditure
- PE – Private equity
- PI – Profitability index
- PIK – Payment in kind
- PV – Present value
- QoE – Quality of earnings
- RAROC – Risk-adjusted return on capital
- RCF – Revolving credit facility
- ROA – Return on assets
- ROCE – Return on capital employed