IPO VIEW-U.S. making comeback as IPO destination
Fri Jun 5, 2009 12:13pm EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
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"Europe has tremendous problems, and the U.S. has addressed its banking problems more decisively, so growth rates long-term will be higher in the U.S. than they will for Europe," said Reena Aggarwal, a finance professor at Georgetown University.
The United Kingdom, France, Italy and Germany have seen no IPOs of size so far this year.
And the United States now benefits from the stronger corporate governance laws many had blamed for dissuading firms from going public here in recent years, the exchanges said, because nervous investors need assurances companies are well vetted.
"You don't want situations like a Satyam on your market," McCooey said of the major Indian outsourcing outfit at the center of an accounting scandal earlier this year.
When a market is under-regulated, that creates a lack of liquidity, which in turn crushes valuations and makes companies more vulnerable to delisting, Cutler said.
Some see the current surge of follow-on offerings as a precursor to a more robust IPO recovery later this year.
The U.S. is dominant in this follow-on arena too. It accounts for 43 percent of the $97.7 billion raised globally in additional shares issues by public companies so far in 2009, suggesting a good head start on the way to an IPO recovery.
After three IPOs each in April and May, June looks promising, with two IPOs, by medical software company Medidata Solutions and Chinese water treatment equipment company Duoyuan Global Water, on the calendar.
That is still a slow pace by historical standards, but an improvement over the near halt in IPOs between September last year and February, when only one U.S. deal went ahead.
"The U.S. is still struggling but it will come out of the crisis stronger, and sooner," Aggarwal said.
"For IPOs, you need investors, and as long as the U.S. has deep pockets, companies will raise capital and list here." (Reporting by Phil Wahba; Editing by Tim Dobbyn)
Fri Jun 5, 2009 12:13pm EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
Market News
Wall St Week Ahead: Stocks eye banks' TARP repayments
Wall Street ends flat on mixed jobs data
Oil falls after touching 7-month high | Video
More Business & Investing News... Featured Broker sponsored link
"Europe has tremendous problems, and the U.S. has addressed its banking problems more decisively, so growth rates long-term will be higher in the U.S. than they will for Europe," said Reena Aggarwal, a finance professor at Georgetown University.
The United Kingdom, France, Italy and Germany have seen no IPOs of size so far this year.
And the United States now benefits from the stronger corporate governance laws many had blamed for dissuading firms from going public here in recent years, the exchanges said, because nervous investors need assurances companies are well vetted.
"You don't want situations like a Satyam on your market," McCooey said of the major Indian outsourcing outfit at the center of an accounting scandal earlier this year.
When a market is under-regulated, that creates a lack of liquidity, which in turn crushes valuations and makes companies more vulnerable to delisting, Cutler said.
Some see the current surge of follow-on offerings as a precursor to a more robust IPO recovery later this year.
The U.S. is dominant in this follow-on arena too. It accounts for 43 percent of the $97.7 billion raised globally in additional shares issues by public companies so far in 2009, suggesting a good head start on the way to an IPO recovery.
After three IPOs each in April and May, June looks promising, with two IPOs, by medical software company Medidata Solutions and Chinese water treatment equipment company Duoyuan Global Water, on the calendar.
That is still a slow pace by historical standards, but an improvement over the near halt in IPOs between September last year and February, when only one U.S. deal went ahead.
"The U.S. is still struggling but it will come out of the crisis stronger, and sooner," Aggarwal said.
"For IPOs, you need investors, and as long as the U.S. has deep pockets, companies will raise capital and list here." (Reporting by Phil Wahba; Editing by Tim Dobbyn)
