By Rob Starr, Content Manager, Big4.com
PwC’s and Baker & McKenzie’s ‘Equity sans frontieres’– trends in cross-border IPOs report analysed data from the past ten years and polled more than 200 global investment bankers , issuers and representatives from stock exchange. 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.
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.
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 the Singapore Exchange’s inbound IPOs, 130 issuers raising $5bn) or Hong Kong (14%, 26 issuers raising $6bn).