Enter to open, tab to navigate, enter to select
PIPE Transaction (PIPE)
Practical Law Glossary Item 5-382-3691 (Approx. 2 pages)
Glossary
PIPE Transaction (PIPE)
PIPE stands for "private investment in public equity." A PIPE transaction is a transaction in which a public company issues restricted equity securities in a private placement to investors (usually at a discount to the market price of its common stock) and does one of the following:
- Has a registration statement for the investors to resell the restricted securities declared effective at the closing.
- Agrees to file a registration statement for the resale of the restricted securities and have it declared effective as soon as possible after the closing.
For more information on PIPEs, see Practice Note, PIPE Transactions.