The US has long been a top choice for global companies looking to go public. Now that the IPO market is stirring, even foreign companies with trading history abroad are eyeing US listings, hoping for higher valuations and greater liquidity than local markets.
The most recent example, UK-based chip designer Arm (ARM) returned to public markets this month, opting to IPO in New York despite pressure from UK officials to list in London. The company had previously traded on the LSE for nearly two decades, until it was taken private by Japan's SoftBank in 2016. Arm's $5 billion IPO was met with plenty of buzz – it priced at the high end and popped 25% – though it is currently up 1% from offer.
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Finland's Amer Sports, the company behind consumer brands like Arc'teryx and Wilson, appears to be on a similar track. After more than 40 years trading on the Nasdaq Helsinki, Amer was taken private in 2019 by an a consortium of investors led by Hong Kong-listed ANTA Sports. Despite its Nordic roots and Chinese owner, the company is reportedly gearing up for a US listing, filing confidentially in September for an IPO that could come in early 2024 and value it at $10 billion.
In late July, US appliance maker SharkNinja (SN) began trading on the NYSE, after Hong Kong-listed parent JS Global Lifestyle (HKEx: 1691) distributed shares of the core subsidiary to its shareholders. The US listing has so far unlocked substantial value for shareholders: JS Global was worth about $3.6 billion before the spin-off, well below the current combined market caps of SharkNinja ($6.2B) and JS Global ($0.6B).
In the near term, Brazilian meatpacker JBS (JBS) appears to be the next one on tap. Currently listed on the B3 Brazil, the company's shares trade at a notable discount to US-listed peers, but it aims to unlock value for shareholders by restructuring, shifting its incorporation to the Netherlands, and listing in the US. JBS filed with the SEC in July to complete a direct distribution in connection with the proposed reorganization, culminating in a dual listing on the NYSE and B3 expected by year-end.
Listing in the US has a host of advantages, with the world's deepest and most liquid capital markets, and the widest base of potential institutional investors, many of whom have experience valuing a range of businesses. Companies with US consumer brands (e.g. Amer, Shark Ninja, JBS) may also count on their customers to become investors.
International companies are a decent portion of US IPO activity. A number of foreign issuers have cross-listed in the US this year, including large deals from Mexico's Vesta Real Estate (VTMX) and Israel's Enlight Renewable Energy (ENLT).
The public pipeline is packed with foreign issuers, though only six are on file to raise $100 million or more; the most recent filers include German sandal maker Birkenstock (BIRK) and Vietnamese tech company VNG (VNG), which is reportedly delaying its listing until 2024.
Aside from Amer Sports, our Private Company Watchlist contains many other international companies primed for US IPOs, such as include Chinese EV brand Zeekr, UK chip developer Imagination Technologies, and Canadian mining company McEwen Copper.
For more on past and upcoming activity, including from foreign issuers, read our 3Q23 US IPO Review.
