BAIRD’S PERSPECTIVE ON THE

EQUITY CAPITAL MARKETS

Equity Capital
Markets Update

Q3 2023
Baird’s Equity Capital Market Insights

Top Observations from Baird’s Desk 2023 YTD Equity Market Performance

• Equities wavered in Q3 with major indices down Nasdaq 26%

~2% - 4% as persistent inflation and higher-for-
S&P 500 12%
longer Fed commentary drove market
sentiment; however, indices still remain within Russell 2000 1%
5% - 10% of 52-week highs
DJIA 1%
• Technology IPO market re-opened with three
VIX (19%)
notable transactions; Arm priced the largest IPO
since Rivian priced in November 2021, and S&P
S&P 500
500 Sectors
Sectors
Klaviyo and Instacart marked the first Software
Communication Services 39%
and Internet IPOs of size since late 2021
Technology 34%
• Cornerstone investors are helping to de-risk
recent IPOs; 88% of 2023 IPOs over $200M in Consumer Discretionary 26%
Consumer and Technology sectors had a
cornerstone investor indication on the cover for Energy 3%
a median of 33% of the initially filed deal size
Industrials 3%
• The new wave of IPOs coming to market are
category leaders with notable scale, Materials 1%

emphasizing balanced growth and profitability Financials (3%)

Real Estate (5%)

Quarterly Highlight:
Continued IPO Momentum in Q3 Healthcare (5%)

Consumer Staples (7%)

Utilities (17%)
/ / Oddit Te $ $

Crude Oil 13%

e mora
/ / $ $
T erape s
10-Year Note Yield 18%
/ / a eBio

po ee €/$ (1%)
/ /
T erape s

$
YoY IPO Volume (35%)
/ / avi o $

ap ebear
YoY Follow-on Volume 42%
/ /

Median YTD IPO Performance (6%)

/ / rm Median YTD Follow-on Performance (6%)

Source: CMG as of Q3 2023. Source: FactSet and Dealogic as of Q3 2023.

$ in millions. Includes IPOs greater than $200M in total deal size. Excludes closed-end funds, SPACs and deals under $15 million.

1
IPO Market Update

IPO momentum continued into Q3, led by the first Technology IPOs of size to price since 2021. While IPO volume is down Y/Y,
capital raised is up 142%, as larger issuers are attempting to open the broader IPO market. All Q3 offerings priced within or above
the filing range, showing strength in recent pricing dynamics. Recent IPOs have also been smaller as a percentage of market cap,
with Q3 IPOs (excluding Healthcare) having an initial float of 10% at the median, compared to 15% median for IPOs that priced
since 2019.

IPO Volume Trends

# of Transactions Capital Raised ($ in billions)
113
120 103 96 $60

80 57 $40
37
40 21 20 16 14 $20
7 12 11
0 $0
Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 2022 2023
YTD YTD

Pricing vs. Filing Range

Above Range In Range Below Range
100% 4% 5% 3%
19% 21% 14% 14% 14% 17% 27% 19%
75%
61% 71% 79% 72%
50% 58% 57% 58%
66% 59% 79% 70%
73%
25%
20% 28% 35% 24% 21% 29% 25% 25%
0% 15% 7% 11%
Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 2022 2023
YTD YTD

Median IPO Performance

Offer-to-1 Day Offer-to-Current
17% 11% 22% 21% 11% 11%
30% 4% 12% 10% 9%
4%
0%
(30%) (3%) (2%) (6%) (6%)
(60%) (32%)
(90%) (71%) (67%) (71%) (71%) (67%) (71%)
(76%) (79%)
Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 2022 2023
YTD YTD

IPO Pricings – 2023 YTD 180-Day Public Backlog

Healthcare Healthcare
11 Consumer 1 Industrial
3 2
10 Business Services Real Estate
2 8
3 Technology Technology

3 37 Energy
Financial Services
2
26 Consumer
Business Services
Industrial 3 Energy
4 7 4 Financial Services
Energy Technology
5 4
Real Estate Energy Technology

Source: FactSet, CMG and Dealogic as of Q3 2023. Excludes closed-end funds, SPACs and deals under $15 million. Backlog figures exclude deals under $25 million.

2
Follow-On Offering Market Update

The follow-on market continued to see steady activity with 84 offerings in Q3. 303 follow-ons have priced YTD (up 42% Y/Y),
raising $77.0B in capital (up 50% Y/Y). Offerings containing a secondary component remained elevated at 35% YTD, above last
ear’s mark and t e -year average of 23%. Issuers continue to leverage confidential marketing as a way to avoid market risk.

Follow-On Volume Trends

# of Transactions Capital Raised ($ in billions)
350 303 $100
300
250 $75
162 214
200 142
137 95 124 $50
150 63 90 90 84
100 61 $25
50
0 $0
Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 2022 2023
YTD YTD

Follow-Ons by Execution Type

Marketed Overnight Bought

100%
20% 31% 23% 23% 21% 25% 22% 23% 29% 22% 22% 26%
75%
34% 23% 32% 36% 45%
50% 52% 47% 50% 54% 46% 53% 54%
25% 46% 46% 45% 41%
27% 28% 28% 23% 25% 25% 33% 20%
0% –
Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 2022 2023
YTD YTD

Median File-to-Offer Discount

0%
(5%)
(10%) (7.3%) (6.9%) (6.4%)
(8.5%) (7.9%) (7.8%)
(9.3%) (9.6%) (9.6%) (9.1%) (9.2%) (9.4%)
(15%)

Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 2022 2023
YTD YTD
Primary vs. Secondary Follow-Ons (1)

% of Primary % of Secondary
100%
14% 21% 24% 21% 20%
31% 37% 31% 32% 39% 35% 35%
75%
50%
86% 79% 76% 79% 80%
69% 63% 69% 68% 61% 65% 65%
25%
0%
Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 2022 2023
YTD YTD
Source: FactSet, CMG and Dealogic as of Q3 2023.
Excludes closed-end funds, SPACs and deals under $15 million.
(1) Secondary follow-ons include transactions with selling shareholder component greater than 50%.

33
Baird Equity Capital Markets Update

Since 2021 Baird’s Eq it Capita arkets fran ise omp eted 218 financings, raising a total
of $93+ billion

Note: Represents select Baird offerings.

In the last quarter, Baird initiated research coverage on 26 companies, bringing the total number of
companies under coverage to 722

4
Baird Institutional Equities Update

Overview
Baird is an employee-owned, fully independent international wealth management, capital markets, private equity and asset
management firm with offices in the United States, Europe and Asia. Combining deep expertise, long-term perspective and a belief
that inte rit is irrep a eab e Baird fo ses on a ievin “Great o t omes. Done we .” for its individ a orporate instit tional and
municipal clients.

• From 2004 – 2023, Baird has been recognized as one of the FORTUNE 100 Best Companies to Work For®
• Baird manages and oversees more than $405 billion as of June 30, 2023
• More than 110 Baird research professionals produce top-ranked research on 722 companies in the Business Services, Consumer,
Energy Technology, Financial Services, Healthcare, Industrial, Real Estate and Technology sectors
• In 2023, Baird ranked #1 for “Best Trading for Small/Mid-Cap Equities” and earned over ten additional Top 3 rankings in
numerous survey categories in the Coalition Greenwich U.S. Equity Investors Small- / Mid-Cap Equities Survey*
• Since 2010, Baird has raised over $360 billion of equity and completed over $420 billion in M&A deal value
• In the past 5 years, Baird has served as financial advisor for debt issues totaling $9 billion for public, sponsor-backed and family-
owned companies
Founded in 1919, Baird is headquartered in Milwaukee, Wisconsin, and has been a member of the New York Stock Exchange since
1948.

Based on capital, underwriting and M&A advisory activity, and the number of Financial Advisors and branch offices, Baird is one of
t e U.S.’s ar est private owned se rities firms eadq artered o tside ew York. Baird emp o s approximate 5,100 employees
in the U.S., Europe and Asia.

Baird Equity Capital Markets Contacts

Peter Kies Lance Lange Macie House Justin Holsen
Managing Director, Managing Director Managing Director Managing Director
Head of Equity llange@rwbaird.com mhouse@rwbaird.com jholsen@rwbaird.com
Capital Markets 414.765.7079 503.273.4937 414.298.7768
pkies@rwbaird.com
414.765.7262

Sandy Walter Ryan Engelhardt Renn Anderson Tom Schadewald

Managing Director Managing Director Managing Director Director
swalter@rwbaird.com rengelhardt@rwbaird.com rkanderson@rwbaird.com tschadewald@rwbaird.com
414.298.5118 414.298.5118 503.273.4903 414.298.7479

Matt Gailey Kotryna Smith

Vice President Vice President
mgailey@rwbaird.com kpsmith@rwbaird.com
414.765.1458 414.298.5170

* Coalition Greenwich 2023 surveys of North American Equity Investors. Surveys conducted with 95 small-cap and mid-cap fund managers and 235 traders. Rankings for qualitative metrics
based on leading research firms in surveys.

5
 Disclaimers & Other Disclosures

DISCLAIMER
This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect
our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but
we cannot guarantee the accuracy.

ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST

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and Exchange Commission, FINRA and various other self-regulatory organizations and those laws and regulations may differ from
Australian laws. This report has been prepared in accordance with the laws and regulations governing United States broker-dealers
and not Australian laws.

OTHER DISCLOSURES
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Limited holds an ISD passport.

This report is for distribution into the United Kingdom only to persons who fall within Article 19 or Article 49(2) of the Financial Services
and Markets Act 2000 (financial promotion) order 2001 being persons who are investment professionals and may not be distributed
to private clients. Issued in the United Kingdom by Robert W. Baird Limited, which has offices at Mint House 77 Mansell Street, London,
E1 8AF, and is a company authorized and regulated by the Financial Conduct Authority. For the purposes of the Financial Conduct
Authority requirements, this investment research report is classified as objective.

Robert W. Baird Limited ("RWBL") is exempt from the requirement to hold an Australian financial services license. RWBL is regulated
by the Financial Conduct Authority ("FCA") under UK laws and those laws may differ from Australian laws. This document has been
prepared in accordance with FCA requirements and not Australian laws.

6
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