PwC: Cross-border IPO activity intensifies

By Rob Starr, Content Manager, Big4.com

New PwC study covering ten years and polling more than 200 global investment bankers, issuers and stock exchange representatives, shows cross-border IPO activity accounted for almost a fifth (19%) of the global IPO proceeds raised in 2011.

London is the leading destination for cross-border IPO activity – attracting 480 IPOs raising $110bn from cross-border issuers originating from a diverse range of markets around the world. This represents 34% by number and 15% by value of the total IPOs on the London Stock Exchange, and 38% by number and 50% of all cross- border IPOs globally.

The study confirmed that London is a preferred listing venue for Russian and CIS issuers; 104 issuers listed in London raising $53bn between 2002 and 2011, 45 of which were Russian companies raising $39bn. Many of these IPOs were made through a listing of global depositary receipts (GDRs). The proportion of cross-border IPOs achieved through GDRs has increased during the period, from 5% of the total in 2002, reaching a high of 30% in 2010.

Clifford Tompsett, capital markets partner and head of PwC’s IPO Centre, said:

“One of the reasons that GDRs have been so attractive in Europe is because of their lower regulatory threshold. This is borne out by the increasing numbers of issuers who have chosen to do a GDR listing in Europe since the implementation of the 2005 EU Prospectus Directive and the revised depositary receipt regime.”