The growing migration of European and Asian companies to the US market reflects a trend that could redefine the panorama of initial public offers globally. Promoted by higher valuations, greater liquidity and a more attractive financial environment, these companies seek to capitalize on the advantages that Wall Street offers. With a record number of Initial public offers (Opi) cross -border and the interest of giants such as Klarna, Ashtead and Holcim, the United States is consolidated as
It happens that European and Asian companies could soon flood the US market with new quotes, driven by the possibility of obtaining higher valuations and accessing greater liquidity, what is causing an exodus from its local markets.
From the Swedish payments “Buy now, pay later“Klarna Group PLC to the Ashtead Group PLC team rent New York.
This figure would be added to the record of cross -border contributions recorded in the US last year. A key factor behind this trend are the highest valuations: European and Asian actions quote with an approximate discount of 35% compared to their US peers, according to data compiled by Bloomberg.
Glencore PLC became on Wednesday the last company to show interest in a possible relocation. If you advance with your transfer to the US market, you would add another 50,000 million to the total.
The background scenario
“Many companies understand that, at this time, the US is the deepest and more liquid market,” said Seth Rubin, head of global shareholding markets at Stifel Financial Corp. “This trend covers multiple sectors and industries.”
In 2023, USA attracted 101 initial public offers (OPI) of foreign companies, an increase of 51% compared to 2022, according to a report by the consultant EY. These operations represented more than half of OPI’s total in the US, a historical figure, although they only contributed approximately one fifth of the income generated. These data do not include transactions in which capital was not collected, such as the transfer of the main contribution of Flutter Entertainment PLC of London to New York.
The expectations of a rebound to the growth driven by the pro -business agenda of former president Donald Trump are also motivating some European and Asian companies to consider an exit in the US & Co., in an interview with Bloomberg TV last month.
Much of the capital at risk of leaving comes from Europe. The British Ashtead Group, part of the FTSE 100 index, has announced plans to transfer her main contribution to the US, following the steps of CRH PC, a construction materials that did the same in 2023.
The region has already lost several opi in recent years. In 2023, the British chips manufacturer Arm Holdings Plc chose the US Bloomberg News reported this month.
For its part, the Swiss company of Solutions for Construction Holcim Ltd. plans to split its US unit through a contribution in the US., In addition to another in Switzerland. Jan Jenisch, who will direct the split, estimated last year that the US subsidiary could reach about 50,000 million dollars. Previously, the company had indicated that its split in the US could exceed 30,000 million dollars.
“The number of European companies that consider an opi in the US. It is greater than ever, and we observe a clear increase in the number of companies currently listed in Europe that are evaluating a secondary price in the United States,” said David Boles, partner of the Freshfields law firm.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
