Cross-Border IPO Index 2018
Analyzing the key trends in cross-border IPO transactions for 2018.
Cross-Border IPO Index 2018
Megadeals and cross-border listings into US and Hong Kong dominate global IPOs
Concerns on protectionism and uncertainty lead to slowdown
Global capital raised from IPOs increased 5% despite a decline in activity levels in a year dominated by megadeals and cross-border listings into US and Hong Kong, according to our research. The market continued to experience geopolitical uncertainty and related concerns around worldwide trade flows.
US President Trump's protectionist policies, the UK's impending divorce from the European Union and market volatility have contributed to the decline in the overall volume of deals. While total capital raised increased by 5% to USD 219.4 billion, the number of deals fell 17% to 1,448.
Domestic listings slide
That slide was replicated in the domestic IPO market, where the volume dipped by 21% to 1,231 IPOs and value of listings also declined by 11% to USD 158.2 billion, a result of market volatility caused by political concerns and recent and upcoming elections in the US, India and most of Latin America.
The number of listings in Europe, Middle East & Africa (EMEA), Asia Pacific, and Latin America were all down by an average of 32%, while there was a more positive performance in North America with a 25% increase in listings recorded, although this did little to offset the overall global decline.
Perhaps surprisingly, the US domestic IPO market was not impacted by the mid-term elections and was the most active of all domestic markets with a total of 200 listings recorded at a value of USD 41.7 billion.
It was followed by India where 171 IPOs were recorded, a 6% slide on last year, followed by Canada with 107 issues, up 43% year-on-year.
Providing a counter balance to relatively slack domestic trade was an active cross-border IPO market, where capital raising reached a 4-year high.
New listing regimes in Hong Kong, which make it easier for companies to list and continued growth in Chinese-domiciled companies listing in the US, has been behind much of the increase. Young Chinese Biotech companies are said to be heading to Nasdaq to list as a result of its new and more flexible listing requirements.
As a result, our Global Cross-Border Index grew by 46% in 2018 to 23.8 due to a steady increase in the value and volume of IPOs by Chinese issuers listing in Hong Kong, Nasdaq and New York. A total of USD 62.0 billion was raised for the year as a whole, a jump of 68% on 2017 and the highest since 2014. Volume also increased by 19% to 221.
There has been a steady increase in the number of megadeals (raising over USD 1 billion) over the past 3 years, from 22 in 2016, to 30 in 2017 and 35 in 2018 - with North America showing the largest increase.
Hong Kong dominance continues
Hong Kong confirmed its position once again at the top of the leader board of stock exchanges by value with USD 36.6 billion worth of capital raised, a jump of 124% on last year.
It was boosted by changes to its listing regime, which allows for IPOs of Biotech companies that don’t yet have a track record of profitability, and the listing of companies with weighted voting right structures.
When it comes to volume, Nasdaq stole Hong Kong’s crown as the most active exchange with a total of 190 IPOs, up 44% on the year, boosted by the growing number of tech listings - particularly from China.
The London Stock Exchange (LSE) maintains a top ten podium spot on the most active leader boards by both value and volume despite the uncertainty surrounding Brexit, although the amount of capital raised has fallen by 15% to USD 10.9 billion.
"It's been another year of strong geopolitical headwinds - protectionism, Brexit and general uncertainty caused by elections around the world - all of which have done little to dampen capital market activity amongst certain issuers. In particular, we've seen an increase in cross-border IPO value in 2018, largely as a result of an increase in listings and capital raising by Chinese companies tapping deep investor pools in Hong Kong and the US. While domestic listings were down slightly from where we expected them to be, we expect an uptick in 2019 as new governments settle and certainty increases once more."
Global Head of Capital Markets
Financials continues to be the most active sector in the global IPO market
Financials retained the top spot as most active sector in the global IPO market for both deal volume and capital raised, although the latter fell on the prior year.
A total of 290 IPOs were recorded in the Financials sector, up 18% on 2017, while total capital raised dropped 24% to USD 41.7 billion, over 80% of which was raised from domestic listings. Some of the most notable deals included AXA Equitable Holdings’ IPO in May which raised USD 3.2 billion on the New York Stock Exchange (NYSE), DW Group’s USD 1.6 billion in Frankfurt, Thailand Future Fund’s USD 1.4 billion local listing and Jiangxi Bank’s USD 1.1 billion listing in Hong Kong.
Telecommunications came in second on the leader board when it comes to capital raising with USD 33.9 billion recorded, up an incredible 2300% on the year, due to a number of megadeals including Softbank's USD 21.1 billion listing due to list on Tokyo's exchange on 19 December, as well as China Tower's USD 6.9 billion listing, and Xiaomi's USD 5.4 billion listing, both on the Hong Kong Stock Exchange. This capital was raised by only 18 issues in the sector, compared to the 290 listings in Financials, but is skewed by the huge value of Softbank's listing.
High Technology also had a strong year, up 17%, raising USD 32.6 billion - supported by a number of megadeals, including Foxconn Industrial Internet's public offering in Shanghai which raised USD 4.3 billion, iQIYI Inc raised USD 2.4 billion on Nasdaq, Pagseguro Digital's USD 2.3 billion listing on NYSE and Pinduoduo's IPO drawing USD 1.6 billion on Nasdaq. Despite less global activity in this sector, capital raising increased by 17% as a result of a 254% increase in the value of cross-border offerings, mostly from Chinese-domiciled companies.
Healthcare also saw a jump in capital raised, up 32% year-on-year to USD 20.4 billion and Real Estate was up 26% to USD 15.8 billion.
There were 2 megadeals in the Healthcare sector – Siemens Healthineers' USD 5.2 billion float on Frankfurt's Deutsche Börse and the USD 1.1 billion Hapvida Participações e Investimentos SA IPO on Brazil's B3. In Real Estate, megadeals included VICI Properties' domestic listing in New York which raised USD 1.4 billion, Vinhome's listing in Ho Chi Minh for USD 1.4 billion and Smithson Investment Trust's USD 1.1 billion listing on the LSE.
Spotlight on Biotechnology
It's been another strong year for IPOs in the Biotechnology sector with both the amount of capital raised and the number of IPOs the second highest in the last 5 years.
At 40, the number of Biotech IPOs was down slightly on last year's record of 44, but recorded a 10% increase in capital with USD 4.2 billion, a figure only bettered in 2016 when USD 5.1 billion was raised. Indeed, the last 4 years has been a bumper period for IPOs in the sector with a 70% increase in Biotech valuations over the period.
Cross-border Biotech IPOs have also been active, making up 20% of total issues and 43% of total capital raised. Chinese Biotechs have been leading the way with cross-border listings with USD 1.8 billion raised compared to USD 173 million last year.
Appetite remains strong
Fueling such activity is the emergence of a crop of young Biotech companies arriving on the market with high valuations, which are being chased by strong investor appetite. They are looking to raise capital to fund research and development for clinical trials, particularly the more expensive Phase III stage.
In addition, activity has also been boosted by US FDA efforts to speed up approvals, along with the new rules on the Hong Kong Stock Exchange, which have made it easier for Biotechs to list. The HKSE now allows Biotech companies that aren't yet profitable or without revenue to list, provided their expected market capitalization is more than HK$ 1.5 billion. That compares to the 3 consecutive years of profit and revenue, which those listed on China's main exchanges – Shanghai and Shenzhen – must prove before listing.
The new rules in Hong Kong mean the number of Biotech companies coming to the market in the early stages of research and development and with no profit or turnover is expected to grow. When it comes to the most active exchanges for volume, Nasdaq remains the most popular choice for Biotechs to list with 26 issues raising USD 2.1 billion, while South Korea's Kosdaq came in second with 5 issues raising USD 107 million. The Hong Kong Stock Exchange raised USD 1.4 billion across 3 issues, Shanghai Stock Exchange USD 358 million and the NYSE USD 138 million, both with 1 Biotech issue.
Nasdaq and Hong Kong Stock Exchange were the only 2 exchanges where Biotechs completed cross-border IPOs. Nasdaq has historically been a popular choice for technology listings; Euronext, a strong contender, has been a strong challenger but saw a number of deals fail to launch due to choppy investor sentiment.
Hong Kong outpaced Nasdaq in capital raising terms with USD 1.4 billion recorded across 3 issues, while Nasdaq notched up 5 issues which raised USD 435 million.
Major offerings remain strong
There were no mega-IPOs in Biotech during 2018 but China's Beigene Inc. came close, raising USD 903 million after pricing its secondary listing in Hong Kong.
Another major offering came from US Biotech firm Allogene Therapeutics which listed on Nasdaq for USD 373 million, a compelling move given the company was less than 6 months old at the time of listing. A large part of that is down to investors' faith in Allogene's management, who previously led the successful Biotech listing of Kite Pharma.
China's global contract research outsource provider, WuXi AppTec, successfully listed on the main board of the Shanghai Stock Exchange marking the nation's first unicorn enterprise to get initial public offering approval on the A-share market.
WuXi AppTec raised USD358m in the IPO and said it will use the proceeds in its expansion projects in Tianjin and Suzhou, Jiangsu province, and its research and development centre at its operational headquarters in Shanghai. WuXi AppTec serves as an example of how hot Biotech stocks can become, as its share price soared from its initial price of USD 3.4 to USD 20 only weeks after its debut.
Rubius Therapeutics was the second largest listing on the Nasdaq this year raising USD 277 million. The IPO was unique due the fact that the company is still preclinical and none of its technology has been tested in humans.
In terms of cross-border listings, UK company Autolus Therapeutics listed on Nasdaq for USD 173 million in June 2018, with the funds raised set to help it develop treatments for leukaemia and lymphoma.
Share prices jump after issue
The major IPOs have seen their share prices rocket since listing but overall, of the 40 Biotech IPOs our index has recorded, 50% were trading below their initial stock price 1 month after pricing.
Venture capital remains important to the Biotech sector providing a vital source of cash for research and development and helping drive valuations up.
Around USD 2.2 billion was raised from venture capital-backed IPOs in 2018, the same as in 2017 and the highest level of capital raised in the last 5 years.
Meanwhile, capital raised in VC-backed cross-border IPOs has been on a par with last year hitting the USD 594 million mark, again the highest level of the last 5 years.
Of the 18 VC-backed IPOs recorded, 63% were trading above their initial offering prices, illustrating how VC is positively impacting the performance of fledgling Biotech firms.
"Strong investor appetite is fuelling the number of listings and valuations as the high risk versus high reward model makes the biotech sector an attractive area for both big pharma looking to accelerate R&D and innovation, along with VC/PE funds looking for the promise of rich exits down the line. While Nasdaq continues to be the most popular choice for listings, it now faces competition for cross-border IPOs as the burgeoning growth of Chinese biotech means issuers will choose to take advantage of regulation changes in Hong Kong and list there instead."
Global Head of Healthcare
Stock Exchange Insight
Improved investor sentiment was behind a powerful performance on the Hong Kong Stock Exchange.
Of the top 10 IPO destinations by capital raised, 5 are based in Asia Pacific (Hong Kong, Shanghai, Shenzhen, Australia and Japan), 2 in North America (Nasdaq and NYSE), 2 are in EMEA (Frankfurt and London), and 1 is in Latin America (Brazil). When it comes to volume, 6 are based in Asia Pacific, 3 are in North America and 1 is in EMEA.
Improved investor sentiment was behind a powerful performance on the Hong Kong Stock Exchange, which saw the total value of listings jump by 124% on the year to USD 36.6 billion, the highest of all global exchanges.
The exchange benefited from a change to its listing regime earlier in the year, combined with the weakness of international bourses which have been impacted by trading tension between the US and China.
The NYSE and Nasdaq took second and third position respectively when it comes to capital raising.
The NYSE recorded USD 32.7 billion, down 1% on the year (and 145% higher than 2016 when the US Presidential elections were held), while the Nasdaq notched up USD 28.3 billion, an impressive 69% jump year-on-year. The end of the mid-term elections in the US could encourage companies which may have stalled their listings ahead of the vote to come back to the market.
PE and VC-Backed IPOs
Patient capital contributes to slowdown in IPO exits
In line with the overall market and a slower pace of exits with higher value pricing, PE and VC-backed IPOs have suffered a decline in volume in 2018, down by 44%, but capital raising was up by 2% on 2017 with USD 72 billion.
Within that, VC-backed capital raising fell 14%, a slide which was only partially negated by an 22% increase in PE-backed IPOs.
Part of the malaise in the market is the fact PE funds are holding assets for longer and that capital has become patient given the wider choice of investment vehicles which have come to the market in the last few years. Both buyout funds and others have been holding funds for double the time than would have been traditionally witnessed.
Also, there is plenty of capital being raised by buyout funds on the lookout for investment opportunities, providing cash for companies that would otherwise have listed.
Exits have also been slow from VCs but the dollar value increased, led by the software sector. However, a stronger year is forecast in 2019 for exits with IPOs predicted from both Dropbox and DocuSign.
"There is plenty of capital being raised by buyout funds on the lookout for investment opportunities, providing cash for companies that would otherwise have listed. However, a stronger year is forecast in 2019 for exits with IPOs likely from both Dropbox and DocuSign."
Global Head of Private Equity
The highest number of PE/VC-backed IPOs was recorded in the Healthcare and High Technology sectors in 2018 with 62 and 60 respectively, (down from 74 and 97 in 2017).
Capital raising by High Technology PE/VC-backed exits increased in value by 33% to USD 19.6 billion - the highest among the sectors - while Healthcare PE/VC capital raising increased by 11% to USD 8.7 billion.
Other strong performers include Retail (up by 95% to USD 7.9 billion), Consumer Products & Services (up by 2% to USD 6.3 billion), Telecommunications (up by almost 1,000% to USD 5.6 billion), and Materials (up by 7% to USD 4.2 billion).
The most capital raised from PE/VC exits came from China with USD 30.5 billion, up from USD 24.8 billion in 2017, while the US took second spot with USD 10.6 billion, up from USD 10.5 billion.
China also topped the table for the number of issues with 83 PE/VC-backed IPOs, a sharp fall from 277 last year, and Japan came in second place with 45. The US and the UK came in third and fourth place in terms of the top issuing nations.
Stock exchange insights
The exchange with the highest number of PE/VC-backed exits and also the most capital raised was Nasdaq with 81 and USD 13.8 billion respectively, up 59% and 116%.
The US exchange was streets ahead of its nearest rival, the Japan Exchange Group in second spot on the volume leader board with 44, followed by the Shenzhen and Shanghai Stock Exchanges, at 34 and 33 respectively. It was slightly tighter at the top of the table of exchanges ranked by capital raised with the NYSE taking second place with USD 13.6 billion compared to Nasdaq's USD 13.8 billion, and followed by the Hong Kong Stock Exchange with USD 11.8 billion.
A 146% increase in the value of cross-border listings drives growth in Asia Pacific
Despite a double-digit decline of 27% in the volume of overall IPO activity in Asia Pacific, capital raising was up 17% to USD 104.2 billion - driven primarily by a 146% increase in the value of cross-border listings.
Domestic activity saw a sharp decline, falling 31% on number of issues, to 761 from 1,095 in 2017 - and down 8% on capital raised from USD 74.5 billion in 2017, to USD 68.2 billion in 2018. This dip in value would also have been in the double digits, had it not been for the expected USD 21.1 billion listing of Softbank Corp.
Shenzhen, Shanghai and Australia's stock exchanges saw the biggest declines in domestic activity, falling 81%, 76% and 20% respectively. This can be partly attributed to the increase in Chinese companies listing on foreign exchanges - particularly Hong Kong and the US, in an effort to leverage foreign investment and more relaxed listing regulations.
Cross-Border IPO Index: Asia Pacific
Away from the domestic market, the market was strong with our Cross-Border IPO Index almost doubling to 26.0 in 2018 from 14.8 in 2017. The increase comes after a consecutive slide in the index every year from 2013 to 2017. While the number of IPOs in Asia Pacific grew by 12% on the year to 115, it was the value of cross-border deals in the region which really impressed, climbing by 146% to USD 36.1 billion.
Much of that increase can be attributed to the sharp increase in capital raised in Hong Kong, mostly by issuers based in China. In fact, China issuers accounted for 9 out of the top 10 cross-border listings and also made up 73% of the total cross border issuers in Hong Kong followed by 13% from Singapore, 3% in Malaysia and 3% in Macau.
In addition, the new listing regimes which came into effect in April 2018 on the Hong Kong Exchange have also encouraged an increase in the value of deals in Asia Pacific.
The changes – which included allowing the public listing of issuers in the Biotech sector that do not have a track record of profitability, as well as listing of companies with weighted voting right structures, boosted investor confidence and interest as it marked the largest overhaul of the Hong Kong Exchange's listing rules in decades. The biggest cross-border deal for the region was China Tower Corp Ltd at USD 6.9 billion followed by Xiaomi Corp at USD 5.4 billion and Meituan Dianping with USD 4.9 billion.
"Overall activity in Asia Pacific has slowed this year, driven primarily by a sharp dip in domestic listings as a number of regional elections impact on investor confidence - something we expect to run into Q1 2019. While interest and exchange rates continue to affect cross-border activity, the value of listings has shot up as a result of Chinese issuers seeking foreign investment and less stringent listing rules, particularly in Hong Kong."
Asia Pacific Head of Capital Markets
Brexit remains a focus of the IPO markets in EMEA and is partly blamed for a dip in both volume and value of total activity, along with worries over Italy's debt issues and political concerns in both Italy and Germany, but also the larger global geopolitical context.
Total IPO activity in the region fell 23% to 178 while the total capital raised also dropped by 23% to USD 43.6 billion. Domestic value fell by 25% to USD 38.3, while domestic volume fell by a quarter to 152.
Cross-Border IPO Index: EMEA
An overall slump in IPO activity in the region saw EMEA register the only decline in our Cross-Border IPO Index. It dropped slightly to 17.2 from 18.2 in 2017. Behind the drop was a 3% fall in the number of IPOs recorded to 30, and a 45% drop in the total value capital raised to USD 6.1 billion. The most active sector for cross-border IPOs in EMEA was Financials with 8 deals, down from 11 in 2017, followed by Energy and Power with 5, unchanged from last year, and High Technology, Materials and Real Estate all on 3. The Financials sector recorded the highest capital raised at USD 2.5 billion, down 62% on 2017, following by Energy and Power at USD 1.2 billion, up 14%, and Industrials at USD 899 million, up 97%.
The largest cross-border deal in the region was Vivo Energy PLCs listing on the JSE and LSE, where USD 816 million was raised, followed by the Nova Ljubljanksja Bka Dd listing on both the Ljubljana Stock Exchange in Slovenia and the LSE, raising USD 690 million; and Shurgard Self Storage Europe’s listing on Euronext in Brussels, which raised USD 578 million.
Meanwhile, emerging markets activity has remained steady with 4 cross-border deals recorded, 1 from South Africa on the LSE, 2 on Nasdaq (NASDQ) from Russia and Jordan, and 1 from the UAE on the Oslo bourse. The impact of Brexit can be most keenly felt on the LSE, where the value of cross-border capital raised dropped by over 70% on the year, signalling hesitation on behalf of foreign investors to list in the UK as it finalizes the terms of its divorce with the EU. Despite this, the London bourse remains the most active EMEA destination for both cross-border and domestic listings.
Frankfurt led with overall capital raising in 2018 with USD 13.3 billion, up by over 300% on the year. The largest deal launched in the exchange was Siemens Healthineers, which raised USD 5.2 billion in its public debut in March. The Frankfurt exchange was also home to 2 other megadeals: Knorr-Bremse's IPO in October, which raised almost USD 4.0 billion, and DWS Group's USD 1.6 billion IPO, also launched in March.
Significant decline in IPO volume was witnessed in Italy - with only 13 listings in 2018 compared with 25 in 2017. In fact, all of the top 10 exchanges in EMEA, bar Frankfurt, Euronext and SIX Swiss, experienced a drop in activity levels; lending support to the idea that issuers are looking to alternative stock exchanges outside of London and even Europe, as uncertainties around the outcome of Brexit continues.
"As the strength of the US market continues to grow and Brexit continues to generate uncertainty for investors, we are seeing strong competition to the London Stock Exchange for cross-border listings. This uncertainty will carry over into next year as we reach the UK's departure date from the EU."
EMEA Head of Capital Markets
Renewed confidence in the US economy as a result of tax reforms and less stringent regulations – particularly on Nasdaq – has helped boost IPO activity in the region.
The number of North American IPOs grew by 31% to 383, while the amount of capital raised climbed by 16% to USD 62.6 billion.
Domestic capital raising fell by 3% to USD 42.8 billion, while the number of IPOs recorded climbed by 25% to 307.
The North American IPO market faces risks from any potential trade wars and any investigation into US President Trump in the coming months but, setting those aside, 2019 is expected to be a stronger year as companies grow more confident about listing in the region.
Cross-Border IPO Index: North America
Our Cross-Border IPO Index for North America climbed strongly to 29.4, bolstered mainly by higher cross-border capital raising in the region.
It climbed by 87% to USD 19.8 billion, while the number of IPOs also increased by 52% to 76.
Behind the increases was a jump in the number of technology listings by Chinese issuers, with 17 notched up on US exchanges during the year. That’s up from just 7 Chinese issuers in 2017 and 3 in 2016.
The buoyant display was also helped by the strong performance of stocks in Nasdaq and the NYSE which helped to bolster investor confidence and comes despite the US mid-term elections. Traditionally IPO activity dips during a US election year, as it did in 2016 and 2014 previously.
The 3 biggest cross-border IPOs during 2018 in North America are made up of China's iQIYI Inc on the Nasdaq which raised USD 2.4 billion, Brazil's Pagseguro Digital Ltd on the NYSE with USD 2.3 billion and China's Pinduoduo Inc on Nasdaq which raised USD 1.6 billion.
"Tax reforms and regulation changes have provided a favorable environment for growth in North America capital markets activity for the second year running. Despite recent market disruption and volatility, given the effect of tax reform and an overall more favorable regulatory environment, we expect 2019 to be another strong year with anticipated listings that had deferred up to now, coming into play."
North America Head of Capital Markets
Overall IPO activity in Latin America fell during 2018 for both the volume of capital raised and the number of deals.
There were 11 deals recorded on the region’s exchanges, down 42% on 2017, and USD 8.9 billion raised, down 6%. The market was burdened by the Brazilian elections which tend to keep investors on the sidelines, as well as uncertainty surrounding Mexico’s left-wing president’s reaction to US President Trumps protectionist policies.
Despite the subdued conditions, the region saw 3 mega deals: Empresa Brasileira de Infraestrutura Aeroportuaria (Infraero), set to raise USD 3.6 billion on Brazil's B3, Grupo Aeroportuario de la Ciudad de Mexico, which raised USD 1.8 billion on the Mexican stock exchange in March; and Hapvida Participações e Investimentos, which raised USD 1.1 billion on Brazil's B3 in April.
Mexico was the busiest IPO market in the region during the year with 6 IPOs raising USD 2.7 billion during the year including Grupo Aeroportuario de la Ciudad de Mexico (USD 1.8 billion) and CFE Capital S de RL de CV (USD 863 million). For the 11 issuers that listed outside the region during the year, Nasdaq and NYSE were the main destinations with Pagseguro Digital raising around USD 2.3 billion on NYSE and Stone co raising USD 1.4 billion in Nasdaq. The Real Estate sector remained busy with the largest number of deals at 5, up from just 1 last year. It was headed by CFE Capital’s USD 863 million listing in Mexico and Plaza SA’s USD 531 million listing in Santiago. Total capital raised in the sector reached USD 1.5 billion, up over 2,000% on the previous year.
"As expected, regional elections have impacted on activity - with at least 10 presidential elections or changes in government in 2018 alone, including in larger countries such as Colombia, Mexico, Chile and Brazil. While we can expect this to stretch for another 6-12 months, there are high expectations for the performance of Argentina in 2019, as its current economic reforms are introduced and settle."
Latin America Head of Capital Markets
Taking a closer look at some key IPOs we worked on this year
National Australia Bank (NAB)
Issuer: L1 Long Short Fund
Regional Focus: Asia Pacific
We acted as legal adviser to NAB as sole arranger and as legal adviser to the syndicate of Joint Lead Managers for the listing of shares on the ASX.
- 664.8 million shares were issued priced at AU$2 raising AU$1.329 billion.
- The shares were only open to investors based in Australia and New Zealand.
- Initial shares were oversubscribed more than twofold.
- Crestone Wealth Management, Morgan Stanley, Morgans Financial, Wilsons Corporate Finance, Ord Minnett and Taylor Collison as Joint Lead Managers.
- Bell Potter, FNZC, Hunter Capital Advisors, Macquarie, Patersons and Shaw and Partners as Co-Managers.
- Price range and prospectus date : 16 February 2018
- Settlement date: 17 April 2018
- This deal made L1 Long Short Fund the largest listed investment company in Australia.
- The original prospectus for the IPO outlined a minimum of 50 million shares (AU$100 million raise) and maximum of 300 million shares (AU$600 million raise). In the end, 664.8 million shares were issued priced at AU$2 raising AU$1.329 billion.
Thailand Future Fund (TFFIF)
Issuer: State Enterprise Policy Office of Thailand
Regional Focus: Asia Pacific
We acted as adviser to the State Enterprise Policy Office, Ministry of Finance (Thailand) and counsel to the fund managers consisting of Krungthai Asset Management and MFC Asset Management on the listing of TFFIF on the Stock Exchange of Thailand.
- 4.47 billion new investment units were issued raising $1.38 billion
- Largest public listing since 2015.
- The fund’s aim is to invest in long-term projects including expressways or toll roads, railways, electricity generation and distribution, airports and deep seaports.
- J.P. Morgan Securities Plc, Merrill Lynch, Phatra Securities, Finansa Securities and Krung Thai Bank as bookrunners.
- Krungthai Asset Management and MFC Asset Management as fund managers.
- Price range and prospectus date : 12 October 2018
- Settlement date: 19 October 2018
Issuer: Port of Tallinn
Regional Focus: EMEA
We advised Port of Tallinn as issuer's counsel on the listing of shares on the Tallinn Stock Exchange. Port of Tallinn is the largest Estonian IPO and privatisation to price in over 12 years. The IPO was oversubscribed by more than three times and priced in the top quartile of the price range.
- Offering of 86,704,968 Ordinary Shares - made up of 75,404,968 newly issued ordinary Shares and 11,300,000 existing ordinary shares
- The offering raised gross proceeds of €147m including a €128m primary issuance, part of which will be used to pay an extraordinary dividend to the Government shareholder, resulting in a post-money market capitalisation of €447m.
- Citigroup Global Markets Limited and Carnegie Investment Bank AB acted as Joint Global Coordinators and Joint Bookrunners
- Erste Group Bank AG and Swedbank AS acted as Joint Bookrunners
- Price range and prospectus date : 25 May 2018
- Settlement date: 6 June 2018
"Baker McKenzie played an essential role in the success of our offering and listing, which was awarded Baltic IPO of the Year 2018. As the first state-owned listing in a decade, there was no recent experience in this kind of deal - but Baker McKenzie’s approach and interpretation of the requirements, in a market whose regulations and economic environment had significantly changed in that time, was invaluable."
CFO of AS Tallinna Sadam
- Baltic IPO of the Year 2018
- The IPO, which was oversubscribed by more than three times, attracted 102 institutional investors from 22 countries and a record size of total subscriptions from 13,723 Estonian retail investors (1% of the population)
- Port of Tallinn is the 4th largest port operator in Northern Europe. The Group has a diversified portfolio of infrastructure operations, including passenger /cruise ship harbours, cargo harbours and a domestic ferry service.
- The offering was priced at €1.7, the top quartile of the range. Only 4 of 29 European IPOs at this time had priced above the midpoint of the range.
Helping clients overcome the challenges of competing in the global economy
Global Chair, Capital Markets
EMEA Chair, Capital Markets
Latin America Chair, Capital Markets
Asia Pacific Chair, Capital Markets
North America Chair, Capital Markets
Associate Director, Transactional Groups
Baker McKenzie's Cross-Border IPO Index is a composite measurement of the strength of cross-border IPO activity relative to overall IPO activity. The index calculation is based on an analysis of several IPO data elements, including capital raised, deal volume, stock exchanges involved and issuer home jurisdictions. All data underlying calculation of the index are sourced through Refinitiv. Correct as of 22nd November 2018.