Although global IPO activity in the first half of 2015 may have slowed from the exceptional pace of 2014, cross-border listings remain an attractive choice for capital raising and continue to gain in popularity relative to domestic IPOs. In contrast to cross-border listings that fell only 24%, domestic fundraising was down 40%.
|Baker & McKenzie’s Cross-Border IPO Index shows a score of 28.8, a slight decrease from the high of 29.1 for the first half of 2014. This reflects a less active IPO market globally. Still, cross-border deals reflected in the index score grew their market share, making up 32% of the global IPO market by deal value in the first half of 2015 compared to 27% in the same period last year.|
The growth in cross-border market share is primarily the result of a strong showing in Asia Pacific. In the first half of 2015, cross-border deals there helped companies raise 75% more capital than in the same period last year. The five largest cross-border IPOs in the world this year so far happened in Asia and involved Chinese companies that listed in Hong Kong.
Economic and political issues in the US, Europe and Asia have resulted in volatile conditions. As such, the major stock market indices have shuttled between slight gains and losses during the first half of 2015. These near-term issues, however, are not expected to affect the markets in the long term. Cross-border listings are expected to return to their previous highs by 2017, supported by the rise of emerging market-based companies seeking more access to capital.
For more information on the current landscape of cross-border IPOs, visit Baker & McKenzie’s Cross-Border IPO Index page.