|By PR Newswire||
|November 20, 2012 01:14 PM EST||
CHICAGO, Nov. 20, 2012 /PRNewswire/ -- Baker & McKenzie has released a global survey report examining the key economic, timing, and financial factors influencing cross-border listings of securities around the world. Cross-Border Listings 2012 shares the findings of a recently conducted survey of corporate executives and investment bankers, along with insight from the Firm's Securities partners and others, and provides a roadmap for companies and financial advisors as they consider various listing options. The report is available at www.bakermckenzie.com/crossborderlisting/.
"As stock exchanges compete to attract more listings, our clients have more choices than ever before when deciding where to raise capital," said Amar Budarapu, Chair of Baker & McKenzie's Global Securities practice. "New York, London, and Hong Kong continue to vie for the top spot, and each of them has revisited or recently eased certain regulatory requirements. As a result, companies are no longer limiting capital-raising options solely to their home jurisdictions."
The survey, conducted by mergermarket in the second and third quarters of 2012 on behalf of Baker & McKenzie, consisted of interviewing 200 corporate executives and investment bankers who have been involved in a cross-border listing within the last five years. The resulting summary provides insight into the challenges they faced, and the benefits they achieved in specific markets. The report also includes eight steps to conducting a successful cross-border listing.
Survey Highlights Changing Global Dynamics
Survey respondents predict that the New York Stock Exchange and the Hong Kong Stock Exchange will continue to be strong performers, especially with regard to cross-border listings. However, while luxury goods companies continue to look to Hong Kong, mining, energy and technology companies are exploring alternatives.
"Companies are also keeping an eye on London as the United Kingdom is taking a cue from the United States and considering new rules that would make the LSE more attractive to start-ups," said Edward Bibko, Head of Capital Markets in EMEA. "Similar to the rules recently implemented under the US JOBS Act, regulators would reduce the number of shares a company is required to offer when listing on the LSE. This could help keep London from losing a large chunk of technology listings to New York."
The survey also looked at obstacles companies were facing in deciding where to list. Among current global economic factors, market participants saw the European sovereign debt crisis as the biggest deterrent to conducting a cross-border listing (54%), followed by stalled growth in emerging markets (23%), and slow recovery in the United States (19%). The regulatory regime within a specific market can be a significant concern as well. Survey respondents view China's regulatory regime with the most concern, followed by the United States and the United Kingdom.
In some cases, survey respondents indicated that the exchange where they listed was not meeting their needs and they considered delisting. Investment banking respondents, who have exposure to a range of companies in this regard, named insufficient liquidity (76%) as a reason for delisting, followed by high fees/costs (54%) and strict governance and compliance requirements (52%).
"With the recent spate of Chinese companies delisting from US exchanges, issuers should identify and avoid common pitfalls in order to complete a listing on favorable terms," said Tom Rice, Securities Partner in New York. "It takes a significant commitment to make a listing successful. For example, Chinese companies that have maintained a US listing have made a commitment to the transparency required by US regulators, and they also keep seasoned financial professionals with public company experience in the CFO's office."
Additional highlights from the survey include:
- Listing abroad is attractive for both emerging and developed markets. Cross-border listings have historically been dominated by companies from emerging markets, which look abroad to stock exchanges with established investor bases and high liquidity. The majority of investment banker respondents (61%) expected this trend to continue. However, as capital markets mature in many parts of the world, companies from developed economies are increasingly considering raising capital abroad in order to access a new pool of investors.
- Mid-sized companies are most likely to list on a foreign exchange. Although there have been a number of highly publicized cross-border listings by large multinational companies in recent years, a majority of investment bankers (52%) believe that mid-sized companies (market capitalization of US$250 million to US$1 billion) are most likely to list on an exchange outside of their home jurisdiction.
- Beyond increased liquidity, other factors are influencing cross-border listings. Corporate respondents' top three reasons for choosing to list on a particular foreign exchange all relate to market liquidity and the ability to realize value from their listing through investor base (98%), favorable price-to-earnings multiples (92%), and economic status of the exchange's jurisdiction (83%). However, in reviewing survey results, Baker & McKenzie found that other factors are also encouraging companies to list abroad, such as the time required to list, raising their profile with investors and their customer base, and the industry focus of particular exchanges.
"Listing on a major exchange is a strong marketing tool for companies planning to expand globally, but companies and their advisers should carefully consider which exchange is most likely to meet their prioritized goals," said Frank Castiglia, Securities Partner in Sydney. "For example, we are talking to several investment banks who were originally helping their mining clients prepare for a listing in Hong Kong, but are now looking at the advantages that ASX and TSX offer, given the greater focus and track record that those exchanges have with companies in the resources sector."
The release of Cross-Border Listings 2012 follows the Firm's recent launch of a Cross-Border Listings App for iPad® and iPhone®, an interactive legal tool designed to help companies and financial institutions navigate the regulatory complexities of listing securities abroad. The app is available on the App Store.
About Baker & McKenzie
Founded in 1949, Baker & McKenzie advises many of the world's most dynamic and successful business organizations through more than 4,000 locally qualified lawyers and 6,000 professional staff in 72 offices in 45 countries. The Firm is known for its global perspective, deep understanding of the local language and culture of business, uncompromising commitment to excellence, and world-class fluency in its client service. Global revenues for the fiscal year ended June 30, 2012, were US$2.313 billion. Eduardo Leite is Chairman of the Executive Committee. (www.bakermckenzie.com)
Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm.
SOURCE Baker & McKenzie
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Feb. 7, 2016 03:30 PM EST Reads: 370
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 7, 2016 02:45 PM EST Reads: 138
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
Feb. 7, 2016 02:00 PM EST Reads: 555
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 7, 2016 01:45 PM EST Reads: 360
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 7, 2016 01:30 PM EST
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Feb. 7, 2016 12:00 PM EST Reads: 343
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 7, 2016 11:30 AM EST Reads: 344
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Feb. 7, 2016 10:15 AM EST Reads: 107
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 7, 2016 07:00 AM EST Reads: 119
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Feb. 6, 2016 03:30 PM EST Reads: 719
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Feb. 5, 2016 09:00 PM EST Reads: 785
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Feb. 2, 2016 02:00 PM EST Reads: 410
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Feb. 2, 2016 04:30 AM EST Reads: 851
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
Feb. 1, 2016 05:00 AM EST Reads: 940
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...
Jan. 31, 2016 09:00 PM EST Reads: 726
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
Jan. 31, 2016 07:15 PM EST Reads: 1,146
For manufacturers, the Internet of Things (IoT) represents a jumping-off point for innovation, jobs, and revenue creation. But to adequately seize the opportunity, manufacturers must design devices that are interconnected, can continually sense their environment and process huge amounts of data. As a first step, manufacturers must embrace a new product development ecosystem in order to support these products.
Jan. 31, 2016 10:00 AM EST Reads: 812
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, showed how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants received the download information, scripts, and complete end-t...
Jan. 31, 2016 10:00 AM EST Reads: 1,216
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, discussed how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the dat...
Jan. 30, 2016 07:45 PM EST Reads: 790
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
Jan. 30, 2016 03:45 PM EST Reads: 1,268