International IPO's Cross- Listing International Research Paper

Total Length: 580 words ( 2 double-spaced pages)

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A logical starting point for analysis however, is the unremarkable yet important espy that cross-listing entities are existing firms or new ventures seeking capital. New companies attracting capital often view cross-listing as a crucial way to increase global visibility and provide financial stability. "IPOs that go public abroad are an important source of new capital for firms. From 1995 to 2007, 6% of all IPOs go public outside their country of origin and this activity accounts for a fifth of all IPO proceeds. (Caglio, C. Hanley, K. & Marietta-Westberg, J. March 2011. PP. 3).

Equally compelling though are the stream of large existing global Fortune 1000 names that cross-list in order to secure the benefits of reduced capital cost and access: BP and Boeing as a short list of the who's-who. Because of the diversity of the global equity exchanges, firms have a range of options on which platforms to choose to raise capital.

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The established centers provide the most transparent and deep liquidity pools however, there are significant cost trade-offs. "For example, requirements to list on the London Stock Exchange Official List are more extensive than those for the Alternative Investment Market" (Lasfer M.N.D. PP. 1): Singapore, Sao Paulo, Mexico; while a U.S. listing involves the company weighing whether "they are able to cover the significant cost of Sarbanes-Oxley compliance and major exposure to liability for management and board of directors" (Lasfer M.N.D. PP. 1).

Current Trends

Cross-listing activity continues to play a key role in a firm's capital access needs. As recently as last week "Spain's Banco Santander is spinning off its Mexican unit with.....

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"International IPO's Cross- Listing International" (2012, September 10) Retrieved June 17, 2024, from
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"International IPO's Cross- Listing International" 10 September 2012. Web.17 June. 2024. <
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Latest Chicago Format (16th edition)

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"International IPO's Cross- Listing International", 10 September 2012, Accessed.17 June. 2024,
https://www.aceyourpaper.com/essays/international-ipo-cross-listing-international-75433