By Rob Starr, Content Manager, Big4.com
Cross-border IPO actitvity accounted for 9% (1,172) of the total number and 13% (US $ 220billion) of the total proceeds raised by all global IPO activity and London and New York are the most attractive destinations for foreign issuers (480 issuers raising $110bn and 264 issuers raising $56bn respectively).
Those were some of the findings of PwC’s and Baker & McKenzie’s ‘Equity sans frontieres’ – trends in cross-border IPOs report, which analysed cross-border IPO data from the past ten years and polled more than 200 global investment bankers, issuers and representatives from stock exchanges.
New York is the second most attractive destination for overseas issuers, attracting 264 companies to American exchanges which raised $56bn. Introduction of more onerous regulations such as Sarbanes-Oxley may have dampened the attractiveness of the US markets for cross-border issuers, with number and amount raised almost half those of London. However the recent enactment of the JOBS Act by the US government is attracting renewed interest from foreign issuers.
Asia- Pacific was the region with the highest level of outbound activity. Asian outbound activity was driven by China: 347 cross-border IPOs originated out of China, 39% of which went to the USA. Singapore is a regional hub for cross-border IPOs, the majority of which originate from either Mainland China (71% of SGX inbound IPOs, 130 issuers raising $5bn) or Hong Kong (14%, 26 issuers raising $6bn).