Sunday, November 29, 2009
U.S. IPOs Have Little International Flair
This wall street journal article discusses the recent increase in the issuance of United States IPOs along with the fact that other foreign companies have gone public but are not listing in America. Big foreign companies are going public and only a slight few are choosing to list in America. Just this year almost a 140 Chinese companies went public but only 10 went to list on American exchanges. It has been a long time since the United States have led in the world of IPOs. Other countries are developing with growing economies and do not need America like they once did.
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2 comments:
It is obvious that America needs to attract more IPOs. The reason why the US is loosing its IPOs to China and India is that former international students and H1 visa workers don't see any incentives to stay in the US. They have more opportunities now at their home countries where they don't have to worry about immigration issues. If the US is not going to fix this problem, many future giant companies will be born abroad.
I don't find it too surprising that foreign companies have decided against debuting on the American exchange, instead issuance an IPO in their home country. Emerging economies have significantly become more attractive in light of the global recession that has crippled us. As said in the article, investment banks have become more global and investors are more willing to purchase shares on foreign markets, the need to have a U.S. listing has subsided.
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