According to BNY Mellon’s Depositary Receipts 2014 Midyear Update, international companies continue to turn to the US stock exchanges to connect with American investors for their initial public offerings and subsequent capital raising activities.
The first half of 2014 saw the highest level of depositary receipt (DR) capital in the last three years. As of 30 June, 41 capital markets transactions globally raised more than $9.1 billion, ahead of the $3.6 billion raised through 20 transactions over the same period in 2013.
almost 60 percent of capital comes from companies from Asia-Pacific, which raised more than $5.5 billion. China was responsible for nearly half of the new capital raising DR programs, led by online sales firm JD.com, who’s IPO on NASDAQ raised $1.8 billion in May.
The majority of DR transactions in the first half of 2014 were from emerging countries. TBC Bank’s listing of DRs on the London Stock Exchange represented the largest IPO ever to come out of Georgia. BNY Mellon also supported Oi in raising $3 billion in the public markets, 40 percent of which was in DR form.
Christopher M. Kearns, CEO of BNY Mellon’s Depositary Receipts business, said: “After a period marked by concern over the US Federal Reserve tapering, investor sentiment is again turning to emerging markets to seek out innovative companies with which to partner.”
“The vigorous return of foreign IPOs on US exchanges, using the efficiency and scope of DRs, would indicate that global firms and investors see this as a healthy marketplace with strong upside.”
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