On decline of U.S. IPO listings I.

• Author: Rees, Matthew
• Position: Global Market/Economic Trends - Initial public offerings - Brief article

"The main factor in market selection for global IPOs is the country where the issuer has its headquarters. Of the ten largest global IPOs in 2005, eight were headquartered in China and Europe, so they launched in the Hong Kong and European markets. This preference for nearby markets is facilitated by Securities and Exchange Commission rule 144A, which allows foreign companies to raise capital from U.S. institutional investors without an SEC registration. In 2006 foreign companies raised a record $10.5 billion in SEC registered offerings, but $133 billion from U.S. institutions under rule...