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Baker McKenzie’s full-year 2016 Cross-Border IPO Index rose by 16% to 32.3 from 2015’s score of 27.9. Cross-border IPOs grew their share of listings, even as overall volume declined. On value, the average capital raised by a cross-border IPO was USD276 million, compared to USD160 million for a domestic listing.

The overall lower IPO activity can be attributed to global uncertainty and volatility.  “The story of 2016 is geopolitical instability, particularly as the world waited on the results of the UK referendum and US elections, along with weak economic performance in key jurisdictions, resulting in weaker investor appetite,” said Koen Vanhaerents, global head of capital markets at Baker McKenzie.

In terms of the major stock exchanges, Hong Kong remained as venue of choice for IPOs, but only New York had growth in cross-border IPO value and volume. London saw the greatest decline in cross-border deals.

As issuers and investors get to grips with global challenges, the long-term outlook looks to be more positive. “Capital markets seem to be returning to what passes for normality in the post-crisis era. Global equity markets have risen by USD2 trillion since the US election, and there is a healthy pipeline of cross-border IPOs that will likely come to market either next year or in 2018,” according to Mr. Vanhaerents.

 

For a more detailed analysis of cross-border IPOs in 2016, visit the 2016 Cross-Border IPO Index insight page on bakermckenzie.com.