By Kevin McCauley
America’s standing as the global leader in initial public offerings is under siege, according to a survey of 50 securities attorneys conducted by KCSA Strategic Communications.
Seventy-one percent says a strict regulatory environment is why the U.S. is losing its share of global IPOs to foreign money centers.
Joshua Bonnie, partner of Simpson Thacher & Bartlett, also notes that foreign stock exchanges are more sophisticated and liquid than they once were. Another factor for doing IPOs overseas: foreign companies are choosing to list on home exchanges.
Jeff Corbin, CEO of KCSA, says the survey shows that “transaction activity continues to erase geographic boundaries.” It is “imperative that companies take into account the various audiences with whom they communication,” said Corbin in a statement.
Survey respondents believe China, at least for the near term, will list with U.S. exchanges due to the perceived stability and prestige of American markets.
More than three-quarters (77 percent) of respondents expect next year’s IPO market will top the 2010 level due to a strengthening economy and pent-up demand for new equity.
Eighty-one percent do not expect the Dodd-Frank financial overhaul law to have an impact on the IPO market.
Technology is predicted to be the must bullish IPO sector in `11. It is followed by life sciences, consumer/retail and natural resources.
KCSA is a financial PR firm based in New York.
|