CROSS-BORDER IPO INDEX: 2019
“It has been an interesting year for the global capital markets as 2019 19.5 unexpected issues, both in the market and politically, have significantly impacted upon activity and investor sentiment. 2018 23.8 While we entered 2019 on an optimistic note, underperformance 2017 16.3 of a number of larger listings coupled with heightened political issues saw a more muted end to the year than anticipated. 2016 17.4 Despite these macro-environment factors, we saw some of the 2015 largest IPOs of all time, with issuers braving the elements to 17.4 go public and raise capital ahead of what is expected to be a downturn in the global markets in 2020.” 2014 24.2 Koen Vanhaerents Global Chair, Capital Markets 0 5 10 15 20 25 30 Cross-Border IPO Index Score
No. of issues Capital raised
$1,577 4 $1,865 8 11 Hong Kong (HKEx and HK GEM) $1,974 Hong Kong (HKEx and HK GEM) Nasdaq Nasdaq
New York Stock Exchange New York Stock Exchange $5,414 Proceeds in Number 102 USD Million of Issues London (Mainboard and AIM) Australian Securities Exchange (ASX) $26,403 51 Nasdaq OMX Nordic Exchanges Singapore Exchange (including Catalist)
s 2019 2019
Issuer Capital Raised Home Jurisdiction (USD million) and Exchange
Alibaba Group Holding Ltd 11,247 China - HKSE
Huatai Securities Co Ltd 1,692 China - LSE Retail Financials Healthcare
TRATON SE 1,577 Germany – OMX Stock 14 26 26 Shenwan Hongyuan Group Co Ltd 1,159 China - HKSE USD 14.9 USD 7.1 USD 5.1 Hansoh Pharm Grp Co Ltd 1,153 China - HKSE BILLION BILLION
- 35% CHANGE IN 4% 197 USD 40.9 CAPITAL RAISED CHANGE IN CROSS-BORDER CROSS-BORDER CAPITAL RAISED IPOs BILLION IPOs DOMESTIC CAPITAL RAISED BY IPOs CROSS-BORDER IPOs
Methodology: 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 27 November 2019. CROSS-BORDER IPO INDEX: 2019
“Uncertainty will always influence the markets, with few 2019 24.5 major financial centers escaping unscathed this year. While the disturbances in Hong Kong did hamper activity to a 2018 26.3 degree, performance remained relatively stable – as the infrastructure and investor base was still reliably there 2017 14.8 for issuers. Alibaba is a good example of this. 2016 20.1 Going forward, we are set to see the ‘battle of the exchanges’ heat up, with recent regulation changes 2015 23.2 throughout the wider Asia Pacific region, coupled with the launch of the STAR market already luring listings 2014 23.5 away from, or at least providing more options in addition to, traditional venues such as Nasdaq and NYSE.” 0 5 10 15 20 25 30 Ivy Wong Cross-Border IPO Index Score Baker McKenzie’s Head of Asia Pacific Capital Markets
s $25 $149 4 1 $919 8 Hong Kong (HKEx and HK GEM) Hong Kong (HKEx and HK GEM)
Australian Securities Exchange (ASX) Australian Securities Exchange (ASX)
Korea Exchange (KRX) (including KOSDAQ) Singapore Exchange (including Proceeds in $26,403 Number 102 Catalist) Singapore Exchange (including Catalist) USD Million of Issues Korea Exchange (KRX) (including KOSDAQ)
s 2019 2019
Issuer Capital Raised Home Jurisdiction (USD million) and Exchange
Alibaba Group Holding Ltd 11,247 China - HKEx
Shenwan Hongyuan Group Co Ltd 1,159 China - HKEx Retail Healthcare Financials
Hansoh Pharm Grp Co Ltd 1,153 China - HKEx 9 13 8 Topsports Intl Hldg Ltd 1,008 China - HKEx USD 12.5 USD 3.8 USD 2.9 China Feihe Ltd 856 China - HKEx BILLION BILLION
- 25% - 13% CHANGE IN CHANGE IN 120 USD 27.8 CAPITAL RAISED CAPITAL RAISED CROSS-BORDER CROSS-BORDER DOMESTIC IPOs BILLION IPOs IPOs CAPITAL RAISED BY CROSS-BORDER IPOs
Methodology: 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 27 November 2019. CROSS-BORDER IPO INDEX: 2019
2019 "We started the year with high expectations for a number 20.2 of planned tech unicorn IPs with possible record valuations. While a number of these unicorns completed 2018 28.6 their IPs, several have seen significant price declines due to investor concern with their business models or path and 2017 22.2 timing to future profitability. s a result, we have seen a number of companies delay their IPs in order to streamline 2016 24.9 and focus their operations, reduce costs and attempt to forge a path to profitability. 2015 17.0 Despite this, domestic capital raising in orth merica hit 2014 31.8 its highest level since 2014 and we expect to see the region continue to buck the global trend well into Q1 2020 as issuers look to list ahead of the 2020 elections.” 0 5 10 15 20 25 30 35 Cross-Border IPO Index Score Chris Bartoli North America Chair, Capital Markets s $54
$938 3 2 Nasdaq Nasdaq 11 $1,974 New York Stock Exchange New York Stock Exchange $5,414 Proceeds in Toronto (including TSXV and NEX Board) Number 51 Toronto (including TSXV and USD Million of Issues NEX Board) Canadian Securities Exchange Canadian Securities Exchange
s 2019 2019
Issuer Capital Raised Home Jurisdiction (USD million) and Exchange
Douyu International Holdings 775 China - Nasdaq Consumer Products Luckin Coffee Inc 645 China - Nasdaq Financials High Technology & Services
Genmab A/S 582 Denmark - Nasdaq 16 10 12 Subversive Capital Acq Corp 575 US – NEX Board USD 2.5 USD 1.9 USD 1.3 Intercorp Finl Svcs Inc 469 Peru - NYSE
- 58% CHANGE IN 31% 67 USD 8.4 CAPITAL RAISED CHANGE IN CROSS-BORDER CROSS-BORDER CAPITAL RAISED IPOs BILLION IPOs DOMESTIC CAPITAL RAISED BY IPOs CROSS-BORDER IPOs
Methodology: 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 27 November 2019. CROSS-BORDER IPO INDEX: 2019
“While Brexit continued to pummel cross-border activity in the 2019 10.8 region, there were pockets of success among domestic activity with a number of exchanges including London, Riyadh, 2018 16.9 Frankfurt and Italy playing host to billion dollar listings. 2017 18.2 We are finally set to see the debut offering from Aramco, which is expected to rocket the Tadawul to the top of the board. 2016 9.0 It's been a real rollercoaster for the EMEA markets of late, 2015 but we can expect to see big things in 2021, as ongoing 11.6 political and economic issues are finally put to bed, releasing pent-up demand.” 2014 19.9 Adam Farlow EMEA Chair, Capital Markets 0 5 10 15 20 Cross-Border IPO Index Score
s
$259 $302 1 London (Mainboard and AIM) London (Mainboard and AIM) 1 $687 Nasdaq OMX Nordic Exchanges Frankfurt Stock Exchange (Mainboard and Xetra) Proceeds in $1,865 Number 4 Nigerian Stock Exchange Nigerian Stock Exchange USD Million 1 of Issues
Euronext Nasdaq OMX Nordic Exchanges
Frankfurt Stock Exchange (Mainboard and Xetra) $1,577 2 Euronext
s 2019 2019
Issuer Capital Raised Home Jurisdiction (USD million) and Exchange
Huatai Securities Co Ltd 1,692 China - LSE
SE 1,577 Germany - OMX Stock Financials Retail Telecommunications
Airtel Africa PLC 687 UK - Nigeria 2 1 1 Marel HF 417 Iceland - EuronextAM USD 1.7 USD 1.6 USD 687 Global Fashion Group SA 205 Luxembourg - Frankfurt
- 27% CHANGE IN 9% 10 USD 4.7 CAPITAL RAISED CHANGE IN CROSS-BORDER CROSS-BORDER CAPITAL RAISED IPOs BILLION IPOs DOMESTIC CAPITAL RAISED BY IPOs CROSS-BORDER IPOs
Methodology: 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 27 November 2019. s 2019 “Despite the higher risks that come with investing in what 140 14000 are usually pre-profit companies, venture capitalists have 12,070 long played a significant role in biotech start-ups - with the 120 10,502 12000 promise of richer rewards driving investor sentiment.
10,072 Capital raised ( 9,566 100 8,670 10000 rather new trend we are seeing in this space is venture lending, where VCs and VC divisions of Big Pharma are 80 8000 lending funds to smaller biotech and healthtech companies
USD million instead of acquiring equity. his should go a long way in 60 6000 buoying these types of companies as we look set to enter a No of issues No of more volatile 2020 market.” 40 4000 ) Ben McLaughlin Head of Global Healthcare 20 2000 119 72 106 115 89
0 0 2015 2016 2017 2018 2019
No. of issues Capital raised (USD million)
s $410 $210 3 $1,115 8 NASDAQ NASDAQ 39 Hong Kong (HKEx and HK GEM) Hong Kong (HKEx and HK GEM) Proceeds in 9 Korea Exchange (KRX) Shanghai Stock Exchange Number (including KOSDAQ) USD Million of Issues Shenzhen Stock Exchange (including ChiNext and SME) Shanghai Stock Exchange $3,323 Canadian Securities Exchange / Korea Exchange (KRX) (including KOSDAQ) $4,569 10 Shenzhen Stock Exchange (including ChiNext and SME)
s 2019
/ ISSUER
CAPITAL 1.2 0.6 0.6 0.4 0.4 RAISED USD BILLION BILLION BILLION BILLION BILLION
HOME JURISDICTION CHINAUS HKEx CHINA HKEx DENMARK NASDAQ CHINA HKEx US NASDAQ & EXCHANGE
- 17% 2% CHANGE IN 89 USD 10.1 CAPITAL RAISED IPOs CHANGE IN IPOs CAPITAL RAISED BILLION CROSS-BORDER CAPITAL RAISED IPOs BY IPOs
Methodology: 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 27 November 2019.