What You Need to Know About Cross-Border IPOs

IPO PictureCross-border initial public offerings surged in the first half of 2014, doubling in volume and  capital raised over the same period last year.

Baker & McKenzie took a close look at global IPO activity for our H1 2014 edition of our Cross-Border IPO Index, a scoring and analysis of  cross-border activity relative to overall IPO activity.  Here’s what we know, and how it may affect your business.

Asia Pacific. Cross-border IPOs were propelled by listings in Australia and Hong Kong, resulting in the region’s index score increasing to 49.9 in the first half of 2014 as compared to  41.7 during the same period last year. Financials, high technology and energy & power were the  top three industries for capital raised in Asia Pacific cross-border IPOs

Europe, Middle East and Africa. While the amount of capital raised in EMEA cross-border IPOs increased by more than 300 percent, the primary theme for the first half of 2014 was the resurgence of domestic IPOs, which increased by over 400%.

North America. Companies raised $7.9 billion in 27 cross-border IPOs in North America in the first half of 2014, a 274% increase over capital raised during the same period last year. This growth outpaced all other regions, driven by favorable economic conditions and steadily rising stock markets in the region.

“Companies are planning carefully and thinking creatively,” says Amar Budarapu, Chair of Baker & McKenzie’s Global Securities Practice Group. “They are being mindful of timing considerations and no longer limiting capital-raising options solely to their home jurisdictions. Issuers and investment banks are increasingly weighing the often substantial benefits of listing abroad.” 

Click here to download our full report.