Q2 was a strong one for the US in the global IPO market … or so it seemed. The Committee on Capital Markets Regulation (CCMR) has a different opinion, and it’s pretty grim. This ‘independent and nonpartisan research organisation’ announced in a statement that it saw ‘during the second quarter of 2011, a general deterioration in the competitiveness of US capital markets’. The CCMR continues that the US’s share has generally declined. US companies are raising more money ‘via offshore-only offerings’.
According to Hal S. Scott, the CCMR’s president and director, ‘Data confirms continued flight away from U.S. public markets—companies with the ability to list anywhere in the world increasingly choose non–U.S. exchanges for public offerings.’
Here are the raw facts:
1. In the first half of this year, the US picked up three of the world’s 20 largest IPOs. That’s a step in the right direction compared to one for the same period in 2009, and none in the two years before that. Nonetheless, it falls short of the average of five per year reached from 1996 to 2006.
2. For now, at least, Hong Kong is the place to be. It picked up seven of this year’s top 20 – and three of the top five.
3. So far this year, the US IPO market has beat the private markets. Notes CCMR, ‘The value of global IPOs sold through the private 144A market decreased to 75.1 per cent from 79.3 per cent in 2010, but remained higher than the 1996–2006 average of 64.1 per cent.’
4. The total market share going to the US fell to 11.4 per cent, down from 14.2 per cent last year and 16.9 per cent the year before. From 1996 to 2006, the average US share of the global IPO market was a comparatively eye-popping 28.7 per cent.
5. US issuers were all over the world in the first six months of 2011. Of 81 IPOs, four of them listed only on foreign exchanges (4.9 per cent, compared to 5.2 per cent in 2010 and 3 per cent in 2009). From 1996 to 2006, the average was only 1.3 per cent. The value of foreign-only listings for US-company IPOs surged to $2 bn for the first half of the year, compared to a mere $278 mn last year.