(Bloomberg) – European and Asian companies will soon be able to flood the American market with new offers, because the allure of increasing valuations and deeper liquidity feeds a exodus of their home markets.
Most of them read from Bloomberg
From Swedish Buy-Now, pay-veryer Giant Klarna Group PLC to equipment rental company Ashtead Group PLC to Chinese bubble-tea-maker Sexy tea, companies outside the US with a combined estimated value of around $ 130 billion works to New York lists, according to calculations based on sources such as Bloomberg News reports, pitchbook data and disclosures of the company.
The figure would contribute to last year’s record number in the US. Higher ratings are an important part of the allure. European and Asian shares act with a discount of around 35% for American colleagues, according to data collected by Bloomberg.
Glencore PLC became the newest company that revealed potential interest in a movement on Wednesday. It would add another $ 50 billion to the total if steps to move the main list to the US.
“Many companies understand that the US is currently the deepest and most liquid market,” said Seth Rubin, head of the global stock capital markets at Stifel Financial Corp. “It’s all over the board and in the industry.”
Last year the US drew 101 first public offers from foreign companies, a leap of 51% from 2023, according to research by Consultancy EY. The deals formed more than half of the entire IPO count of the US for the year – a historical high – even if they have only contributed to about one fifth of the yield. That is only transactions where capital was not collected, such as Flutter Entertainment PLC that shifts its primary list from London to New York.
The hope of a growth-encouraged by President Donald Trump’s pro-business agenda also encourages some European and Asian companies to think about an American Float, JPMorgan Chase & Co.’s Co-head of the worldwide bank Filippo Gori said in an interview with Bloomberg in an interview with Bloomberg TV last month.
Much of the capital that runs the risk of fleeing comes from Europe. FTSE 100 Constituent Ashtead Group has announced plans to move its primary mention, a relocation that Building Materials Firm CRH PLC made in 2023.
The region has already lost several IPOs in recent years. The British chip maker -arm Holdings PLC chose to mention in the US in 2023, while Carlyle Group Inc. Confidential has submitted for an American IPO from the Dutch chemical manufacturer Nouryon, Bloomberg News reported this month.
Swiss Building Solutions Company Holcim Ltd. turns its North -American unit with an American list, with an extra planned in Switzerland. Jan Jenisch, who will help the spin, said last year that his appreciation for the American company was around $ 50 billion. The company had previously said that his spin -off from the US could be appreciated at more than $ 30 billion.
“The pipeline of European companies considering an American IPO is as deep as has ever been, and we see a clear increase in the number of companies currently mentioned throughout Europe that are looking at a potential cross list in the United States, “said David Boles, a partner at law firm Freshfields.
One of the latest movements mentioned Titan Cement International in Greece earlier this month’s US Unit America SA in New York.
To stop bleeding, European officials promote reforms to attract offers, including changes in the rules and continue with a long -praised capital markets, but the efforts have been failed so far.
Part of the issue comes from the observed higher valuations of US shares, with technology-weighted American indices that surpassed historical profits in European benchmarks last year. Especially for private equity property, the higher tolerance for debts by American investors also weighs the decision, say advisors.
“Appreciation and market depth are great, but the other is leverage,” says Clay Hale, co-head of stock capital markets at Wells Fargo & Co. “American investors are much more receptive to having leverage on a company.”
China Challenges
Elsewhere, Chinese companies remained interested in the list in the US, even after the fatal IPO of Ride-Hailing Firm Didi Global Inc. In 2021, with 33 floating in the US last year, as by EY’s count.
Chinese IPOs in the US collected $ 1.3 billion in 2024, collected a fraction of the $ 13.2 billion in 2020, collected by Bloomberg according to data.
Companies that are preparing for an American debut are, among other things, the international arm of data center operator GDS Holdings Ltd. And autonomous row -substantial Inceptio technology has reported Bloomberg News.
Chinese IPO-HoopVols will have to contend with the ever-evolving series of challenges to mention in the US. Autonomous Driving Companies Pony Ai Inc. and world Inc. were confronted with delays in their floats in New York to answer questions from the US Securities and Exchange Commission. The files of the companies showed additional disclosures in risk factors that include data-related activities that go back to the main cause of the IPO-Ellende of Didi.
And in the decreasing days of the BIDEN administration, a new set of curbs came into force on investments by American individuals and companies in Chinese technologies, including semiconductors, quantum computing and artificial intelligence.
“IPOs that are subject to the new investment restrictions can be postponed,” says Mengyu Lu, who leads the practice of Kirkland & Ellis LLP’s Asia Capital-Markets. “The detailed requirements and required regulation process are still unclear, even for reportable transactions.”
