|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 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 20th Cloud Expo, which will take place on June 6-8, 2017 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 add...
Mar. 24, 2017 01:15 PM EDT Reads: 329
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Mar. 24, 2017 01:15 PM EDT Reads: 3,763
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Mar. 24, 2017 12:45 PM EDT Reads: 211
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Mar. 24, 2017 12:45 PM EDT Reads: 1,792
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 24, 2017 12:15 PM EDT Reads: 1,316
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 24, 2017 12:15 PM EDT Reads: 870
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 24, 2017 12:00 PM EDT Reads: 1,811
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 24, 2017 12:00 PM EDT Reads: 1,571
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 24, 2017 10:45 AM EDT Reads: 1,342
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Mar. 24, 2017 09:45 AM EDT Reads: 2,674
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
Mar. 24, 2017 08:45 AM EDT Reads: 3,623
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, will discuss new ways of thinking and the approaches needed to address the emerging challenges of securit...
Mar. 24, 2017 08:30 AM EDT Reads: 4,220
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Mar. 24, 2017 08:30 AM EDT Reads: 1,867
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
Mar. 24, 2017 08:15 AM EDT Reads: 2,856
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Mar. 24, 2017 08:00 AM EDT Reads: 3,975
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Mar. 24, 2017 08:00 AM EDT Reads: 7,288
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 24, 2017 08:00 AM EDT Reads: 3,875
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
Mar. 24, 2017 06:00 AM EDT Reads: 8,437
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Mar. 24, 2017 04:30 AM EDT Reads: 2,578
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 24, 2017 04:15 AM EDT Reads: 1,220