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NYSE Euronext (NYX) led the U.S. market for Initial Public Offerings (IPOs) and new listings both in total capital raised as well as number of transactions in 2010, with $39.1 billion in IPO proceeds raised on the New York Stock Exchange (NYSE) through a total of 99 IPOS, including a record 22 IPOs from China and a rising share of technology companies. The NYSE also gained 14 listing transfers from Nasdaq, the largest number since 2003, when 20 companies transferred to the NYSE. And the $41 billion combined market capitalization of transfers from Nasdaq to the NYSE in 2010 was the highest since 2002, when the total combined market capitalization of Nasdaq transfers to the NYSE was $59 billion.
In 2010, the NYSE listed the largest U.S. IPO of 2010, General Motors (NYSE: GM), which raised $16 billion and facilitated the largest secondary capital raise in history with the $70 billion secondary offering by NYSE-listed Petrobras (NYSE: PBR). Approximately 65% of the publicly available, $29 billion, tranche of Petrobras’ offering was raised through NYSE-listed ADRs, illustrating the deep liquidity offered by listing on the NYSE.
“We were privileged to welcome and contribute to the growth story of many outstanding enterprises in 2010,” said Scott Cutler, Co-Head of U.S. Listings and Cash Execution, NYSE Euronext. “The NYSE’s superior market quality and deep liquidity, global brand leadership and leading edge technology combined with the accountability of human judgment enabled us to attract IPOs of many sizes, sectors and geographies, from the world’s largest IPO to smaller, high-growth and technology-based companies. Looking ahead, the IPO pipeline remains very active, with up to $20 billion in deals pending, including numerous U.S. companies, several large transactions from Latin America and even more activity expected from China, as U.S. and global investors continue to show interest in Chinese and emerging market enterprises.”
NYSE Leads With Chinese IPOs Going Public in the U.S.; New Record
The NYSE attracted more IPOs from China than ever before in one year, listing a record 22 new Chinese IPOs during 2010, surpassing its previous record of 18 Chinese IPOs in 2007. IPOs from China on the NYSE raised more in dollar proceeds and a larger number of IPO transactions than any other U.S. market, both in 2010, as well as in the period 2005-1010 (source: Dealogic). The Ming Yang Wind Power Group (NYSE: MY) $350 million IPO was the largest Chinese IPO in the U.S. in 2010, and Youku (NYSE: YOKU) the best-performing IPO in the U.S. since 2005.
NYSE Captures Market Share in Listing Technology-Based Companies
In 2010, NYSE garnered an increasing U.S. market share – more than 40% - in attracting technology-based IPOs, up from an average of 12% from 2000 to 2008. Supported by its technology transformation and commitment to growth companies, as well as the recent introduction of an additional “fourth standard” enabling smaller companies to qualify for NYSE listing, the NYSE has steadily captured share in attracting technology-based IPOs. Technology-based listings on the NYSE in 2010 included Calix Networks (NYSE: CALX), RealD (NYSE: RLD), Inphi (NYSE: IPHI) and Dang Dang (NYSE: DANG).
NYSE outperformed Nasdaq in Attracting Transfers
In 2010, the NYSE attracted 14 Nasdaq transfers with a combined $41 billion market capitalization, including United Continental Holdings (NYSE: UAL) and Corporate Executive Board Co. (NYSE: EXBD). Only three companies voluntarily left the NYSE for Nasdaq, Notably, the 2010 transfers from Nasdaq included various financial services companies that saw their long-term business strategies better aligned with the NYSE, such as Charles Schwab Corp. (NYSE: SCHW), Knight Trading Group (NYSE: KCG), GFI Group (NYSE: GFIC), and Main Street Capital (NYSE: MAIN).
NYSE Advocacy
NYSE Euronext continues to advocate on behalf of issuers and IPO prospects to reduce regulatory impediments to going public. IPOs remain a key growth engine for the U.S. and global economy and are an important source of job creation. NYSE Euronext supports policies that promote the creation of the next generation of leading public companies.
In 2010, NYSE Euronext led various initiatives on behalf of publicly-listed issuers, including testimony at the House Financial Services Committee on potential legislation that would raise the threshold for companies to file a much simpler offering circular to the SEC, significant input into a review of proxy rules, and a comprehensive review of changes in corporate governance which have occurred over the past decade. The latter resulted in a report, issued last October by the NYSE-sponsored Commission on Governance, identifying 10 core governance principles. The company also launched a broad-based financial literacy initiative led by the NYSE MoneySense website for the benefit of the general public and its issuer community.
