Actionable Ideas for Companies and Sponsors
U.S. IPOs for Non-U.S. Domiciled Companies
In May and June, there was a noticeable increase in the number of non-U.S. domiciled companies accessing the U.S. IPO markets to raise proceeds. Non-U.S. issuers comprised 17% of the U.S. IPO issuance in the last two months of the quarter, raising over $860 million in proceeds, compared to 7% for the first four months of 2013.
Key characteristics of recent “Into-U.S.” IPO offerings include: (1) two-thirds of these IPOs were traditional common stock offerings, and one-third of the IPOs were Level 3 ADRs; (2) only three offerings were dual-listed in a home country; (3) on average, the companies going public in the U.S. generated 35% of their revenues from the U.S., and in only 38% of offerings the U.S. was the largest revenue geography; and (4) there has been broad sector representation with issuers from 10 different sectors tapping the market.