Sell side Archive

Dec 18, 2020
EMEIA IPO market sees ‘much stronger momentum’ in fourth quarter, says EY
IPO activity across Europe, the Middle East, India and Africa (EMEIA) surged in the fourth quarter of 2020 as investors backed equity stories boosted by the pandemic, according to new data from EY. Between October and mid-December, the EMEIA region saw 120 IPOs, more than double the 55 recorded during the whole of the third quarter, says EY. IPO value also increased to $16.1 bn from $7.5 bn. The data covers both completed IPOs and those expected to be finaliz...
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Dec 16, 2020
MSCI removes Chinese firms from indexes following US pressure
MSCI, one of the world’s largest index providers, announced yesterday that it is removing 10 Chinese listings from its Global Investable Market Indexes (GIMI) following consultation on how an executive order signed in November would impact the ‘investability’ of the named firms. It says in a statement that ‘after conducting an extensive outreach with the global investment community, [MSCI will] delete the securities of the Chinese companies referenced in the...
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Nov 30, 2020
Sell-side meeting costs halve since January
The value of sell-side analyst meetings has fallen by almost half (47 percent) since the start of the year as Covid-19 pushed meetings online, according to new research. Virtual engagements are valued lower than physical meetings, say researchers from Substantive Research, which surveyed 20 asset management firms across the UK, Europe and the US, with assets under management ranging fro...
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Oct 08, 2020
The road less traveled: Alternatives to the IPO
Believe it or not, the initial public offering (IPO) – an event whereby shares in a company are first made available to members of the public – dates its lineage all the way back to the Roman Republic, where shares (partes) of ownership of legal bodies (publicani) traded in a type of over-the-counter market in Rome’s Forum. Today, the IPO is how shares in the majority of corporations are made available to the public, thanks to the ubiquity of...
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Sep 30, 2020
The outlook for M&A
As the global extent of the Covid-19 outbreak became apparent, M&A deals began to hit the buffers. Xerox pulled its $35 bn hostile bid for HP. US aerospace suppliers Hexcel and Woodward cancelled their $6.4 bn merger. And said it couldn’t complete a deal to buy one of Bed Bath & Beyond’s business units. The seller responded by suing. Overall, global M&A deal value fell 41 percent in the first half of 2020, compared with the same per...
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Aug 28, 2020
Chinese companies face new US listing challenges
Chinese companies listed in the US are facing a range of serious regulatory challenges right now. Not only has the US government taken a hostile position toward China in general, but a series of actions – by the Trump administration, Congress and Nasdaq – over the summer may also soon force them to make some difficult decisions with respect to their US listings. China-based accounting firms that audit US-listed companies have long refused to allow the PCAOB to i...
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Jul 10, 2020
How Mifid II has increased competition and improved research quality
There has been much debate across the industry over the impact of Mifid II since its implementation. Asset managers, bankers and even some regulators have called for the rules to be rolled back, including the requirement for sell-side research payments to be unbundled from trading commissions. Critics stress that the decrease in research demand negatively affects the level of company coverage, ...
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Jun 18, 2020
Virtual IPOs: Temporary or definitive solution?
The IPO is notorious for being a complex and exhaustive process. Think months of 24/7 planning, immaculate attention to detail and a final seven-day world trip to engage investor interest. Only when the distinct ringing of a bell at the stock exchange is heard can the company breathe a sigh of relief. This iconic sound marks the beginning of a new publicly held corporation. Even with all proper processes in place, the unexpected global pandemic turned the world upsi...
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