Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Why American IPOs Raised $41.7 Billion This Quarter

Published 09/30/2014, 11:49 AM
Updated 09/30/2014, 12:30 PM
Why American IPOs Raised $41.7 Billion This Quarter

Why American IPOs Raised $41.7 Billion This Quarter

By Kathleen Caulderwood - Amid worries about a growing number of tax inversions sending American companies abroad to buy foreign companies to lower their tax bills, new data shows that some deals are moving the other way: cross-border initial public offerings in which foreign companies choose to go public in the U.S. are actually on the rise.

In the third quarter of 2014, 62 companies have gone public, raising $41.7 billion in proceeds, 116 percent higher than the same period last year, according to the U.S. IPO Pipeline Analysis from Ernst & Young.

Of course, the record-breaking Alibaba (NYSE:BABA) IPO helped a great deal.

“We’re seeing heightened cross border activity, including the Alibaba mega IPO raising $25 billion,” EY Global IPO Leader Jackie Kelley said in a statement Monday.

The Chinese Internet company isn’t alone. Technology has been the leading sector for IPOs this year, and foreign issuers accounted for 70 percent of them. Healthcare issues came in second place, though their valuations were nowhere near as high on average, with average proceeds of $80 million.

Currently, 37 of 127 IPOs in the pipeline are in the healthcare sector, with financial services ranking second at 14 and oil and gas ranking third with 10, according to EY’s analysis of data from Dealogic.

© Reuters/Brendan McDermid. Specialist Trader Neil Gallagher points to the ticker symbol for Alibaba Group Holding Ltd. during the company's initial public offering under the ticker 'BABA' at the New York Stock Exchange, Sept. 19, 2014.

“The U.S. is an attractive place to list if you’re a technology or healthcare company as it offers credibility along with investor confidence,” Kelley said.

She said that since 2010, American major exchanges have attracted a larger proportion of global cross-border listings than other markets. The U.S. is a stable place for investors, especially amid increasing instability in Asia and Europe, according to the report. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.