Cross-Border IPO Index H1 2019
Analyzing the key trends in cross-border IPO transactions for 2019.
Cross-Border IPO Index H1 2019
Politics, pricing and performance concerns see a slow start to 2019
2019 has been a late bloomer in terms of activity in the first half of the year
2019 has been a late bloomer in terms of overall activity in the first half of the year, but markets are now beginning to see spurts of growth - with pipeline activity for the rest of the year developing rapidly, according to our research.
Capital raised in the global IPO market for both domestic and cross-border listings fell by 37%, with volume dipping 34% comparatively on last year. A total of USD 69.8 billion was raised across 514 deals, (the lowest for both measures since 2016.) These declines are sharper than were expected, but were in part overshadowed by the legacy of H1 2018's stellar performance.
Continuing and recent geopolitical events, such as the US federal government shutdown, the Sino-US trade tensions and increased Brexit uncertainty, impacted activity as expected in some areas - but despite these external factors, there is a strong undercurrent of positive sentiment among issuers. Although, with Theresa May's exit and the revised Brexit deadline of October - EMEA could still be in for a bumpy ride.
Looking further ahead, forecasts for a global recession in 2020 may see some smaller issuers decide to delay listing, while some may decide to expedite their fund-raising activities this year for fear of a potential recession next year. US elections set for the same year will also grab attention.
The lethargic performance in the first half of the year was mirrored in the domestic listings market where the most noticeable slide was recorded in EMEA with the continued uncertainty around the UK’s exit from the European Union. This, coupled with an economic and industrial slowdown, kept issuers on the side lines, with capital raising dropping 64% year-on-year while the number of domestic listings fell 57%.
The total amount of domestic capital raised globally fell by 32% to USD 58.5 billion, while the number of IPOs recorded fell by 37% to 429.
Helping negate the impact from the weak EMEA numbers was a more positive performance in the domestic IPO market in North America, the only region to show an increase in capital raised, up 13%. Despite the increase in value, volume of listings fell by 22%, with the 30 day SEC shutdown and the ensuing backlog that resulted from it, shouldering the blame for the sluggish start to the year.
Asia Pacific recorded a performance more in line with the global average, with the value of IPOs falling by 40% and the number of listings dropping by 37%. Although there appear to be some larger deals in the pipeline that could make a positive impact later in the year.
Cross-border deals falter
Coming off the back of a sterling performance in 2018, global cross-border IPO activity faltered in the first half of 2019, with total value down 55% to USD 11.3 billion and volume down 16% with 85 listings recorded. Despite the decline in listings, this was still the second-highest level seen since 2014.
While cross-border activity was down overall, it was the dip in capital raised by Chinese issuers that accounted for such a significant drop in value, sliding from USD 15.3 billion in H1 2018, to USD 8.8 billion in H1 2019, a decline of 42%.
Once again the majority of cross-border IPOs in the first six months of 2019 were in Asia Pacific and accounted for 80% of the total cross-border capital raised and 75% of listings. Within that, China remained the most active domicile for cross-border issues, and much of the remainder of cross-border IPO activity came from North America, where USD 3.5 billion was raised, a fall of 62%.
There were just three cross-border deals in EMEA, raising a total of USD 305 million, a fall in value of 91% and perhaps a sign of the uncertainty which Brexit has created - uncertainty that looks set to last until there is some clarity around the UK's exit from the EU.
Despite weaker IPO activity in the first quarter of the year, the market has bounced back in Q2, and looks set to continue increasing throughout the year with a strong, robust pipeline of IPOs in place. While our Global Cross-Border Index declined by 10% in the first half of 2019 to 18.0, this is the second-highest it has been since 2014 - with H1 2018 taking crowning place.
Mega deals decline
The underperformance of some mega IPOs and the subsequent pricing and valuation concerns among investors prompted something of a 'wait-and-see' approach - as issuers held off listing in the early months for the market to settle into more favourable conditions. With the market starting to recover, one thing that we can expect to see in the second half of the year as a result of these concerns and underperformances, is more conservative pricing among larger listings in particular.
A total of 10 mega IPOs, listings raising more than USD 1 billion, were recorded in the first half of 2019, raising USD 24.3 billion. That is in contrast to the same period last year when 18 mega IPOs had been recorded raising USD 40 billion, with steeper declines in capital raising compared to volume of listings.
Exchange hails taxi arrival
Uber was responsible for the NYSE retaining its top spot on the leader board of exchanges by capital raised, with the tech company’s USD 8.1 billion listing keeping Nasdaq in second place.
In total, capital raised on the NYSE reached USD 20.1 billion, a fall of 3% year-on-year, while USD 15.2 billion was raised on Nasdaq, down 4% on the first half of 2018, but up 116% on the same period in 2017.
The National Stock Exchange of India was one of the few to record an increase in capital raised, up 359%, with the Korea Exchange and Saudi Arabia's Tadawul also showing increases of 80% and 221% respectively. Italy’s Borsa Italiana recorded an uptick in capital as a result of the payment service company Nexi’s USD 2.27 billion IPO.
The global IPO market experienced quite a slow start to the year as significant political issues stifled activity, along with a change in investor sentiment towards risk – particularly among pre-revenue companies.
While global activity experienced sharp declines, this is perhaps skewed slightly when compared to the stellar performance seen in the same period in 2018. With a strong pipeline, H2 2019 looks set to deliver a much more prosperous performance overall.
Global Chair, Capital Markets
Financials leads the way but only materials avoids a fall in capital
Financials took the honours as the sector with the largest amount of capital raised in the first half of 2019, buoyed by four listings over USD 1 billion.
The sector notched up USD 18.5 billion in capital which, although impressive, was down over a quarter on the same period in 2018.
The high technology sector wasn’t far behind in second place with USD 18.4 billion, down 14%, while it was a similar story for all other sectors, apart from one.
Materials recorded the only increase in capital raised with value growing 68% to USD 5.2 billion, its largest listing being Avantor's huge USD 3.3 billion float on the NYSE.
The number of issues fell for almost all sectors, most prominently for industrials, down 62% and consumer staples down 54%.
Transportation was a major theme in the technology sector during the first six months of 2019 as two of the world’s biggest tech names listed in the US.
Uber raised USD 8.1 billion on the NYSE, while rival Lyft notched up USD 2.6 billion on Nasdaq. These were two of the three mega technology deals recorded during the period, alongside Pinterest, which raised USD 1.6 billion.
Despite the inclusion of these high profile names, the technology sector tracked the downward trend witnessed across the global IPO market with 89 IPOs against H1 2018's 101. Even with the dip in listings, tech IPO value was up 4% to USD 22.4 billion.
Behind the slide, and aside from the legacy of H1 2018 activity, are concerns around pricing and performance - particularly among those not yet profitable companies. With no tangible foundations to support company valuations, coupled with an unclear path to profitability, there is a growing sentiment of risk aversion among investors for these types of offerings across all industries.
Away from the two transportation giants, IPO performance has been more positive, particularly for Pinterest which saw its shares climb 28% on the first day of trade after upping its initial share price to USD 19 from a USD 15 to USD 17 range initially.
Zoom Video Communications saw its share price jump 72% to USD 62 on the first day of trade from a revised USD 36.
Part of the reason for the strong demand for shares in these companies lies in the fact both have good profitability prospects with Zoom already profitable and Pinterest on track to being so. It also appears as if the performance of Lyft’s shares may have spooked both Pinterest and Zoom into more conservative pricing in the run up to their listing.
The same can be said for other technology companies which have since listed – PagerDuty saw its stock rise 60% on the first day of trading.
Cross-border tech IPOs
Although both the value of capital raised and the number of cross-border IPOs in the technology sector fell in the first half of 2019 on a year-on-year basis in comparison to 2018’s exceptional performance, the sector performed relatively strongly over the longer term.
A total of USD 1.2 billion has been raised so far in 2019 across 12 IPOs - against USD 7.0 billion in the first half of 2018 across 18 IPOs. That is the third highest result in terms of value and volume over the six-year period since 2014.
China continues to dominate cross-border technology IPOs with 8 of the 12 recorded in the first half of 2019 domiciled there - four of which were listed on the Hong Kong Stock Exchange, three on Nasdaq and one on the NYSE. The regulation changes on the Hong Kong Stock Exchange to incentivise technology listings continue to be received positively with a correlating increase in activity, including a potential secondary listing by Alibaba as widely reported in the media recently.
As a sub-sector, software played a large role in cross-border activity, accounting for 75% of volume and 50% of capital raised.
The largest cross-border tech listing came from China's Tencent-backed Douyu International Holdings raising USD 500 million on the NYSE in May this year. German-based Jumia Technologies stands in second place raising USD 225 million in its offering on the NYSE in April.
So-Young, a platform which allows prospective patients to discover and evaluate plastic surgery services, was the third-largest cross-border technology listing. The Chinese company raised USD 166 million on Nasdaq.
Japanese video game hardware and software company, SNK Corp, listed on the Kosdaq in late April raising USD 149 million. The listing is notable as it is the first Japanese game company to go public on the Kosdaq market, and the company is positioning itself for expansion in Korea.
The pipeline of IPOs for the remainder of 2019 looks relatively slim with around 15 expected to raise total capital in the region of USD 4.8 billion. Much of that is made up of three companies commanding around USD 1 billion each, (Global Switch Holdings, Zhejiang Ant Small & Micro Financial Service Group and WeWork Companies).
VC firms continue to show considerable appetite for investment in technology companies which can promise rich rewards on exit.
Capital raised from VC-backed IPOs in the technology sector more than trebled to USD 15.8 billion in the first six months of 2019 compared to the same period in 2018, the highest level in the last five years.
Of the 31 VC-backed companies, 25 were domiciled in Asia with 12 in China, 13 in Japan, 4 in the US and 1 in Canada.
Meanwhile, private equity-backed IPOs in the technology sector have fallen with only one recorded in the first half of 2019, raising capital of USD 225 million compared to six IPOs worth USD 6.4 billion in H1 2018.
There are certain noticeable declines in both the volume and value of tech IPOs in the first half of 2019 versus those a year earlier, when we experienced unprecedented cross-border Chinese activity. There is also good news though, with capital raised by US companies increasing sharply year-on-year, and a promising year for both the NYSE and VC-backed tech IPOs.
With the macro-economic and geopolitical challenges likely to continue to dominate the second half of 2019, another interesting trend to watch is investors’ appetite for risk. Investor’s current sharp focus on the long-term profitability of those tech companies coming to the market shows no signs of changing. And this is indeed reflected in the recent pricing and trading challenges faced by the ‘big ticket’ tech IPOs, which listed in 2019
Global Chair of Technology, Media and Telecommunications
Stock Exchange Insight
Activity eases at main exchanges
The most high-profile IPO of the year so far – Uber – helped the NYSE to rank first in terms of capital raised among all global exchanges.
Uber’s listing raised some USD 8.1 billion and bumped up the NYSE’s capital raising to USD 20.1 billion in the first six months of the year, knocking Nasdaq into second place on the leader board. Still, capital raising for the US exchanges was down on the year when compared to 2018’s sterling performance.
Although most exchanges witnessed a fall in both activity and capital raising, there were a couple of exceptions.
India's National Stock Exchange saw a 359% year-on-year increase in value. Borsa Intaliana also recorded an uptick in value on the back of Nexi’s IPO in April, with the Korea Exchange, Saudi Arabia's Tadawul and Borsa Malaysia also showing strong increases.
The London Stock Exchange retained a place in the top ten destinations for IPO capital raising despite the ongoing Brexit uncertainty, with USD 2.7 billion raised, down 46%.
Hong Kong is the leading destination for cross-border IPOs raising USD 7.2 billion from 44 companies based in China, Macau, Malaysia, Singapore and the US; all choosing to list on the mainboard and GEM.
Nasdaq is the second leading cross-border IPO destination, having raised USD 2.2 billion from 24 public debuts by companies based in China, Israel, Singapore, France, Hong Kong, Cyprus and Colombia.
On the domestic front, US exchanges were dominant with the NYSE raising USD 18.9 billion, up 16%, and Nasdaq 13.1 billion, up 12%.
PE and VC-Backed IPOs
VC appetite holds its own as PE falters
VC and PE appetite to back IPOs was subject to the similar malaise found across the global listings market with activity and the value of capital raised falling by 30% and 22% respectively, driven largely by steep declines in PE-backed activity.
Our research showed USD 33.6 billion of capital across 115 listings, with a sharp slide in PE backing of 62%, tempered by a solid performance by the VC sector, which climbed 38% in the first six months of 2019.
The biggest PE-backed listing during the period was Avantor's USD 3.3 billion listing in New York, while the biggest VC-backed deal was Uber’s USD 8.1 billion listing also on the NYSE.
Cross-border capital raising was subject to the biggest hit, falling 68% to USD 2.8 billion, despite the number of issues of VC and PE backed-IPOs increasing 17% to 14.
High technology companies dominated VC and PE-backed IPOs with 32 companies going public which were backed by financial sponsors, raising USD 16.1 billion.
The popularity of the sector is such that the next largest volume of capital raised on the VC and PE-backed leader board is the financials sector, where USD 4.4 billion was raised, around one quarter of the high technology sector.
Similarly, the US remains the most dominant region for VC and PE-backed IPOs, with USD 20.0 billion recorded in the first six months of 2019, up 35% on the year. China, in second place, mustered only USD 7.1 billion.
The NYSE led the pack in terms of capital raising with USD 14.6 billion from 10 IPOs while Nasdaq topped the tree in volume terms with 33 PE/VC-backed exits in the first half of 2019.
Financially-backed listings had a slow start to the year, with political and economical turbulence causing riskier markets and subsequently delivering a decline in activity, particularly for PE-backed IPOs. With two of the largest VC-backed IPOs underperforming, investor appetite for pre-revenue companies who have no clear path to profit, waned – creating a safeguarding culture of conservative pricing among subsequent issuers. We expect this to be strong trend throughout the rest of the year, particularly for larger companies.
Global Head of Private Equity
Activity falls but booming tech activity in Asia Pacific promises stronger finish
The legacy of 2018’s performance in Asia Pacific, driven by an unusually high number of Chinese cross-border mega deals, has cast a shadow over activity in the first half of 2019, but the longer-term outlook is more positive.
The pipeline for the remainder of 2019 is rapidly heating up, with a number of larger listings expected to debut, such as ESR Cayman's USD 1.2 billion IPO on the Hong Kong Stock Exchange.
Both the amount of capital raised and the number of IPOs fell in the first six months of the year, down by 40% to USD 24.3 billion and 33% to 305, according to our research.
The most significant fall has been seen in domestic activity, with volume and value decreasing 40% and 37% respectively. While cross-border activity remained static at 50 listings, value declined 41% to USD 7.5 billion. Despite the more dampened activity levels, our Asia Pacific Cross Border IPO Index increased 9% to 24.9 in the first half of 2019. It is higher than the weighted global index score due to the relatively larger share of cross-border listings versus domestic listings.
While skewed comparisons tell part of the story, there are other factors weighing on sentiment, not least the performance of large IPOs elsewhere in the world which have struggled to achieve expected pricing on first listing and then failed to perform following IPO.
While underperformance may give issuers cause for a short-term pause to allow the market to settle or potentially to reassess their pricing before continuing the listing process in the coming months, it has not dampened issuer intent and activity is expected to climb in the region throughout the rest of the year. The trade war between the US and China has also been cited as a concern, but of more importance will be market sentiment in the near term in spite of geopolitical concerns, as can be evidenced from China's continuing high level of offerings into the US.
Also, a number of factors give cause for a relatively positive outlook. The technology sector in Asia Pacific has performed strongly in the region with 53 listings.
Investor sentiment remains positive and in part can be attributed to last year's changes to regulations on the Hong Kong Stock Exchange, which allow the listing of pre-revenue biotech companies, as well as the listing of certain companies with weighted voting right structures. There has been an uptick in listings both in 2018 and the first half of 2019 so far.
China continues to progress with the launch of its Science and Innovation Board, which is now accepting and processing applications. The creation of this board is designed to help those innovative and pre-profit companies raise the capital they need domestically, a move also designed to stem the flow of Chinese companies to exchanges outside the region.
Despite investor sentiment on the risks involved with larger pre-profit technology IPOs - pre-revenue and innovative biotechnology, healthcare and pharmaceutical companies continue to pique interest and demand.
Some of the biggest IPOs during the first half of the year in Asia Pacific included Ningxia Baofeng Energy Group's USD 1.2 billion listing in Shanghai, and Chinese securities firm Shenwan Hongyuan Group Co Ltd, which raised almost USD 1.2 billion into Hong Kong.
Three US companies chose exchanges based in Asia Pacific for their public debut. Credentials and compliance healthcare service provider IntelliCentrics Global Holdings Ltd, which raised over USD 57 million in Hong Kong; family tracking app Life360 Inc., which raised USD 101.6 million in Australia; and professional services firm Frontage Holdings Corp, which raised USD 81.9 million in Hong Kong.
China is the most active country with 85 listings within Asia - 50 of those into Hong Kong, followed by Japan with 43, India with 35 and South Korea with 29. All of the IPOs from Japan, India and South Korea were listed domestically.
While there will always be an appetite to tap into foreign investor pools, China’s new Innovation Board is set to encourage more companies to list domestically and we could begin to see a real shake up in the market when it comes to Chinese IPOs – particularly given the positive sentiment towards Hong Kong’s regulation changes last year.
Asia Pacific Chair, Capital Markets
Activity in the EMEA IPO market was hit by weak economic performance and the uncertainties around the UK’s exit from the European Union in 2019. But pent-up demand is expected to flow as clarity emerges around Brexit, along with some growing bright spots in market performance - particularly within the payments sector.
Overall capital raising fell by 67% to USD 9.2 billion, compared to the same period in 2018, while the number of IPOs fell by 61% to 47.
Tellingly, there were only three cross-border listings in EMEA, only one of which debuted on the London Stock Exchange, a historic low; with Frankfurt and Euronext Amsterdam picking up the other two. On the whole, cross-border capital raising has fallen by 91% to USD 305 million. Even during the height of the financial crisis in 2009 the region saw four cross-border IPOs.
As a result the Cross-Border Index score for EMEA has dropped by 68% to 7.0, the lowest score since the Index was established. The slide has been attributed to the continued tension around the UK’s exit from the European Union, the deadline for which has been pushed from March to October. The establishment of a new Prime Minster expected in July will likely exacerbate this volatility in the short-term.
Domestic activity levels in EMEA helped London to retain the top spot for overall capital raising, notching up USD 2.7 billion from 13 listings. Borsa Italiana came in second, raising over USD 2.3 billion from seven listings and the SIX Swiss exchange pulled in USD 1.9 billion from two IPOs.
There were three megadeals launched in Europe during the year including financials firm Nexi which raised USD 2.27 billion in Milan; UK-based financials company Network International Holdings, which raised USD 1.4 billion in London; and industrials firm Stadler Rail, which raised USD 1.3 billion in Switzerland.
When it comes to sectors, financials took the top spot, with USD 4.8 billion capital raised from 11 listings, followed by industrials with USD 1.3 billion across four IPOs.
Despite its sluggish performance, EMEA is proving to be the region of choice for FinTech listings, particularly in the payments field, as the age of digitization and cashless transactions continues to explode - fuelling the need for innovation and technological growth. The largest EMEA listing was Nexi SpA's IPO bringing in USD 2.2 billion.
We are also beginning to see a concerted effort from the Middle East to implement more liberalized economic reforms and deepen in its financial markets, as part of Saudi Arabia's Vision 2030, an initiative aimed at diversifying the Kingdom's oil-dependent economy. There were three listings on the Tadawul Stock Exchange, raising a total of USD 923 million; bolstered mainly by the IPO of Arabian Centres Company, which raised USD 747 million - the first truly international IPO out of the Kingdom.
While the EMEA IPO market continues to struggle under the weight of the UK's exit from the EU, all eyes look to October's exit for more certainty and the subsequent market and economic recovery – as issuers seek to leverage the liquidity and exposure that the London Stock Exchange offers.
Europe’s market and economy continues to struggle under the weight of political volatility and a lack of clarity around Brexit, but all eyes look to October for more transparency and direction.
We are hopeful that the market will subsequently settle and activity in London will recover. The demand is still there for access to the liquidity and exposure that comes with the London Stock Exchange.
EMEA Chair, Capital Markets
In the first quarter in particular, North America bore the brunt of the US federal government shutdown and the SEC's subsequent backlog and delay in activity on the IPO market. What was expected to be a robust performance in the region with some highly anticipated mega listings, instead offered a slack and slightly underwhelming level of activity - with two of its biggest listings underperforming. However, Q2 has seen a welcome spurt of activity, as NA became the only region to record an increase in activity - with a 13% climb in domestic value and a 7% jump in cross-border listings.
Cross-border value was down 62%, suffering the hangover of H1 2018's phenomenal performance, and the dip in high value Chinese listings. Yet it is still at its second highest level since 2014, with USD 3.5 billion raised.
Some of the hotly anticipated listings expected in H1 failed to make an appearance, lending weight to the train of thought that a short-term 'wait and see' approach is being employed globally, after pricing concerns were raised off the back of poor post-IPO performances of other larger offerings. Nonetheless, movement in the market has begun to escalate and it is expected that the remainder of 2019 will continue to surge and deliver a robust pipeline of offerings.
One thing we can expect to see, is a more conservative approach to pricing, as companies seek to boost the all-important performance of stocks after listing.
Despite the concerns over pricing and the forecasted global recession and US elections in 2020, there remains a thirst from investors for companies that have a story to tell and a clear path to success that investors can see.
Those that don’t have such transparency, and indeed those smaller companies which are reliant on strong stock performance and growth post-IPO, may stay private for longer until sentiment improves.
Cross-border capital raising in North America dropped by 62% in the first six months on a year-on-year basis to USD 3.5 billion from 32 listings.
Despite the continued trade war between the US and China, there is still considerable demand from Chinese companies to list on US exchanges, with 16 listings raising over USD 2 billion across Nasdaq and the NYSE.
Domestic capital raising increased 13% to USD 32.6 billion across 128 issues, down 22%.
Our Cross-Border Index in North America fell by 24% due to the ratio of domestic versus cross-border capital raising.
Some of the biggest deals of the first six months of 2019 include Uber's IPO, which raised over USD 8 billion; Avantor's offering, raising USD 3.3 billion on the NYSE; Lyft's USD 2.6 billion listing on Nasdaq in late March; and Pinterest, which raised USD 1.6 billion on the NYSE in mid-April.
Financials, materials and high technology were the only sectors to see a megadeal during the period.
The US federal government shutdown may have stifled activity in the first few months of the year, but this is by no means a reflection of appetite.
While geopolitical and pricing concerns have impacted markets globally, the US is set to experience a burst of activity running right into the start of 2020. What we can expect to see though, is more conservative pricing among issuers in an attempt to safeguard IPO performances.
North America Chair, Capital Markets
Political instability in a number of member countries continues to be the main drag on the Latin America market so far in 2019.
The level of capital raised fell by 95% to USD 243 million during the first six months of the year across just two IPOs compared to seven in the same period in 2018.
Grupo SBF SA raised over USD 173 million on the B3 exchange in Sao Paulo and Inmobiliaria Manquehue SA raised USD 69 million on the Santiago Stock Exchange.
Overall, the market is usually opportunistic, with some IPOs performing strongly dependent on the current market climate.
Political and economical issues in Mexico, Brazil and Argentina, which are usually the main drivers of Latin America activity, have stunted action in the region.
Mexico has a new left-wing leadership combined with a flagging oil industry, Brazil continues to suffer from a hangover from the Petrobas scandal and Argentina’s economy continues set to contract, although a return to growth is expected in 2020.
There are, however, bright spots throughout the region. Chile’s government, although suffering from its own period of instability, continues to focus on economic development, seeing its first listing in two years on the Santiago exchange; while Peru is proving to be one of the more stable countries for investment.
There is no Global Cross-border Index update for Latin America as the region had no cross-border activity. There was, however, one listing out of Latin America, with Colombia's USD 100 million offering from Andina Acquisition on Nasdaq. The IPO was the first in the market since the US federal government shutdown, as the company sought to tap the international investor pool.
While activity is usually driven from Mexico, Brazil and Argentina - political issues and scandals have caused great tumult in these areas, with Argentina’s economy continuing to contract.
We are, however, beginning to see threads of progress from other areas - Chile for example - whose government is making concerted efforts to drive its economic development, despite its own political instability.
Latin America Chair, Capital Markets
Taking a closer look at some key IPOs we worked on this year
Issuer: Arabian Centres Company
Regional Focus: EMEA
We advised Saudi shopping mall giant Arabian Centres Company on its IPO listed on the Tadawul Exchange
- An offering of 95 million shares, representing 20% of the company's share capital and comprised of 65 million existing shares and 30 million new shares
- The offering raised USD 748 million with an implied market capitalization of USD 3.3 billion
- A full international offering, including an offering into the United States pursuant to Rule 144A
Morgan Stanley, Samba Capital, NCB Capital and
Goldman Sachs acted as joint financial advisers
and book runners
Other book runners include EFG Hermes KSA, Citigroup, Emirates NBD Capital, Credit Suisse and Natixis
- IPO completed on 22 May 2019
- The largest IPO for four years in the Kingdom of Saudi Arabia
- The first IPO out of Saudi Arabia with a full international offering - as well as the first Saudi IPO with pre-deal investor education
- The first IPO in Saudi to take advantage of the newly introduced price stabilization regime, also in keeping with international practice.
Thailand Future Fund (TFFIF)
Regional focus: Asia Pacific
Issuer: The Ministry of Finance, Thailand
We advised the Ministry of Finance, State Enterprise Policy Office and the Fund Managers on the establishment and management of Thailand Future Fund, an infrastructure fund, listed on the Stock Exchange of Thailand.
- The offering raised USD 1.4 billion
- The IPO was made up of 4.47 billion investment units with an international offering in reliance upon Regulation S and Rule 144A
- This landmark deal was set up as the Government's fundraising vehicle to raise capital to invest in multiple public infrastructure assets
- IPO completed on 31 October 2018
- The largest IPO in Thailand since 2015
- Thailand's first fund raising vehicle that enables public investors to invest in multiple public infrastructure assets operated by various state enterprises and government agencies in accordance with a new set of regulations issued specifically for this venture
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 30th May 2019.