(Bloomberg) – European and Asian companies may soon flood the US market with new lists, as allure loft valuations and deeper liquidity fueling exile from their home markets.
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From Swedish Buy-Now, the Klarna Group Pay-Pay Giant PLC to the rental company Ashtead Group PLC to Sexy Chinese Tea Bubble Tea Manufacturer, businesses are located outside the US with an estimated combined value of approximately $ 130 billion working towards New York lists, according to calculations based on sources including Bloomberg news reports, data Pitchbook and company disclosures.
The figure would add to the number of cross -border lists in the US last year. Higher valuations are a key part of the allure. European stocks and Asia trade at a reduction of around 35% for US peers, according to data compiled by Bloomberg.
Glencore PLC became the latest company to unveil a potential interest in movement on Wednesday. It would add another $ 50 billion to the total if it takes steps towards moving its main list to the US.
“Many companies understand that the United States is currently the deepest and most liquid market,” said Seth Rubin, Head of World Equity Capital Markets at Stifel Financial Corp. “It is across the board and across industries.”
Last year, the United States attracted 101 initial public offerings from foreign companies, a jump of 51% from 2023, according to research by the EY consultancy. The deals accounted for more than half the entire US IPO account for the year – a historic highlight – even if they only contributed to about a fifth of the profits. That excludes transactions where capital was not raised, such as Flutter Entertainment PLC moving its primary list from London to New York.
Hopes for a growth rally triggered by President Donald Trump's pro-business agenda are also urging some European and Asian companies to think about the US float, says JPMorgan Chase & Co. co. From Filippo's global banking in interview with TV Bloomberg last month.
Much of the capital at risk of fleeing Europe comes. FTSE 100 Constituent Ashtead Group has announced plans to move its primary state -of -the -art listing, a relocation that the CRH PLC building materials company made in 2023.
The region has already lost out on several IPOs in recent years. Holdings Arm, British Chip Manufacturer PLC chose to list in the US in 2023, while Carlyle Group Inc. Filened in secret for the United States IPO of Dutch Nouryon chemicals producer, Bloomberg News reported this month.
A Swiss building solutions company Holcim Ltd. Spinning off its unit in North America with a US list, with an additional one designed in Switzerland. Jan Jenisch, who will navigate the spinoff, said last year that her valuation for US business was about $ 50 billion. The company had said earlier that its US -effect could be priced at more than $ 30 billion.
“The pipeline of a European companies considering US IPO is as deep as it has ever been, and we are seeing a noticeable increase in the number of companies currently listed across Europe looking at a cross -list in the United States States, ”said David Boles, a partner in the law firm Freshfields.
Among the latest movements, Titan Cement International SA Greece listed its unit in the US Titan America SA in New York earlier this month.
To prevent the hemorrhage, European officials are promoting reforms to attract listings, including changes to the listing rules and progressing with a long-excited capital markets union, but so far efforts have fallen short.
Part of the issue comes from the perceived advanced valuations of US stocks, with technology -weighted US indexes overriding historic gains in European benchmarks last year. For equity -owned private companies in particular, the higher tolerance to debt from US investors also weighs the decision, councilors said.
“The valuation and depth of the market is big, but the other thing is leverage,” said Clay Hale, co-head of equity capital markets at Wells Fargo & Co. “U.S. investors are much more acceptable to have another turn or turn -half of leverage on business. “
China's challenges
Elsewhere, Chinese companies have continued to be interested in listing in the US even after the unfortunate IPO at the Didi Global Inc. destinations company in 2021, with 33 floating in the US last year, in line with EY account.
Chinese IPOS rose in the US $ 1.3 billion in 2024, a fraction of the $ 13.2 billion raised in 2020, according to data compiled by Bloomberg.
Companies preparing for a first appearance in the US include the international branch operator of the GDS Holdings Ltd Data Center. And the autonomous driving company Inceptio Technology, Bloomberg News has reported.
Chinese IPO hopes will have to contend with the set of challenges that are continually evolving to list in the US. Pony Ai Inc. Autonomous Driving Companies A WERIDE INC. Faced with delays in their floats in New York to answer queries from the US Securities and Exchange Commission. The companies file showed additional disclosures in risk factors that included data -related activities, concerns that go back to the root of Woe's IPO Didi.
And in the days of fading of biden administration, a new set of curbs came into effect on investments from US individuals and companies to Chinese technologies, including semi -conductors, quantum computing and artificial intelligence.
“IPOs subject to the new investment restrictions may be delayed,” said Mengyu Lu, who is leading the practice of Asia Kirkland & Ellis LLP capital markets. “The detailed requirements and regulatory process required are still unclear, even for the notifiable transactions.”
