Where all investors are equal
PopulUS Markets, Inc. was created to advise exchange markets and securities issuers about how to use existing securities industry infrastructure to invite the broadest population of investors, and their advisors, to participate in the new issue offering process. We firmly believe that market vitality for any security is correlated with the breadth and size of its holder base, which proves the importance of democratizing the new issue offering process through inclusion and equal access. These are important ingredients for healthy markets everywhere, and the US in PopulUS Markets is ALL of us…large, small and in between…individual investors and institutional investors, too.
For Exchanges, PopulUS Markets offers a framework for expanding Direct Listings – which are new listings of securities that have not raised capital through an IPO – into a tool that can raise capital. After the Direct Listings of Spotify (SPOT, April 2018), Slack (WORK, June 2019) and iHeart Media (IHRT, July 2019), interest in this path toward public listing has grown in large part due to its lower cost, and in particular the avoidance of the IPO pricing “discount”. Yet for a Direct Listing to successfully raise capital, there are tools and processes that need to be incorporated into the offering process, and this is where PopulUS Markets can provide critical support. As a neutral, unconflicted resource with deep experience in this process, PopulUS Markets is an important resource for exchange markets – and their constituents – to be able to participate in this important enhancement of our market structure.
For Investors, the use of PopulUS Markets means equal access to new securities offerings through the financial advisor that they have already chosen to do business with – without regard to their form of business (full service, independent, online or other). This ensures that investors have access to the advice they need to determine the suitability or appropriateness of any new offering for their financial objectives. The PopulUS Markets tools used for this process feature a very high level of transparency during the marketing period prior to any new issue’s launch to give investors insight into the status of these offerings in real time. Another important feature is that investors who participate in these offerings are not expected to pay commissions on orders that are filled during our offering process, because the cost of distribution will be paid by the issuers.
For Issuers, PopulUS Markets offers an integrated offering methodology that will optimize demand discovery – and price discovery – that is driven by true investor input with the guidance of their financial advisors. Our goal is to be able to interact with every potential investor in this way through our exchange partnerships and to pre-populate new offerings with investors who want to own them in their portfolios. In contrast with traditional IPOs, PopulUS Markets is designed to invite the participation of all 90+ million investors in the US. By assembling a broad base of investors, the offerings that we help bring to market will become known for inclusion and access for all…all of US.
Navigating developments related to market structure and capital raising have historically been two separate areas of inquiry. Now that leading US exchange markets are promoting Direct Listings and are supporting efforts to configure them as tools to raise capital, both areas are becoming equally important and they have become integral to the decision-making process for exchanges and issuers alike.
PopulUS Markets has been following these developments closely. And as we get closer to a Direct Listings method that is usable for raising capital, new tools for managing these transactions are needed. “Book building” methodology that has traditionally been used for IPOs was designed for proprietary in-house distribution, so it will not capture all of the potential investor interest and information that should be available for issuers. To get the greatest benefit from Direct Listing connectivity and exposure, PopulUS Markets has developed a suite of tools to manage these offerings that emphasize equal access for all investors through the financial advisors that they have already chosen to do business with.
For Exchanges, PopulUS Markets provides advice to:
For Issuers of new securities and others, PopulUS Markets provides:
Become a new consulting client by scheduling a free initial consultation using the email address noted in the Contact Us section below.
If you would like to contact us you may do so at: info at populusmarkets.net
Tom's background has touched all of the relevant industry components that relate to the PopulUS Markets, Inc. business model, including:
♦ Corporate syndicate (new offering pricing, underwriting and distribution) - PaineWebber
♦ Retail / institutional sales -PaineWebber and W. H. Morton & Co.
♦ Market structure / market quality measurement, listed company relations - NYSE
♦ Capital markets (origination, structuring and pricing new issues) - Smith Barney
Tom began his career as an Associate in the Corporate Syndicate Department of Paine Webber, where he was personally involved in the pricing and allocation of new issues of debt and equity. He was later recruited to the NYSE in a staff role that included responsibility for market quality measurement, market-maker performance evaluation and support for a Board-level committees that made listing allocation decisions and monitored market quality. Tom was very active as a speaker before a variety of Exchange constituents, frequently called upon to explain the auction market system and its competitive differentiators. He was also an important communications resource for the Exchange in its relationships with listed companies.
When the SEC expanded the Shelf Registration Rule, it became clear that corporate finance would become more transactional in nature. In anticipation of this, Tom left the NYSE to join Smith Barney, where he founded their Debt Capital Markets Origination Group from zero and led its growth and strategic direction. He was personally responsible for over $9 billion of new financings in the U.S. public and private placement markets as well as the Euro market, for a number of Fortune 500 – level companies. Tom also single-handedly initiated and grew the firm’s Medium-Term Note (MTN) effort from its very first transactions. One of the features of Tom’s experience with Smith Barney was the successful positioning of his efforts as an advocate for the firm’s financial advisors and their investor clients concerning new offerings. This enabled the firm to demonstrate consistently superior execution quality for its issuer clients while offering investors improved communication and access to new issues.