Welcome!

Wearables Authors: Pat Romanski, Ed Featherston, Shelly Palmer, Yeshim Deniz, Elizabeth White

News Feed Item

Baker & McKenzie Study Reveals Key Factors to Consider When Listing Securities Abroad

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

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...