We are pleased to present the latest edition of our Bermuda Public Companies Update which features a recap of significant transactions involving Bermuda public companies listed on the NYSE and Nasdaq for the first half of 2018.
Following a solid 2017 (229 IPOs), the first half of 2018 saw a decline in deal numbers with 66 IPOs year-to-date on the NYSE and Nasdaq. Political uncertainty was likely a contributing factor. However, the trend towards larger transactions continued with growth in IPO proceeds. The first quarter of 2018 was the biggest in terms of gross proceeds in more than three years, at US$17 billion.
Bermuda companies have seen a busy half year, with two IPOs, a spike in M&A activity and the conclusion of Seadrill Limited’s major restructuring (see right). In general, market activity by Bermuda public companies in H1 2018 has been focused in the telecoms, insurance, financial, aviation and pharma sectors.
Airport retail company Hudson Limited launched its IPO on the NYSE in January and biopharma company Kiniksa Pharmaceuticals Ltd launched on Nasdaq in May, raising a combined total of US$901.5 million. Conyers acted as issuer’s counsel on both transactions. Secondary offerings by a number of other companies, including Norwegian Cruise Line Holdings offering in the amount of US$1 billion, brought the total value of Bermuda company securities offerings on the NYSE and Nasdaq in H1 2018 to approximately US$11.5 billion.
Nearly two-thirds (21/32) of the transactions involving Bermuda public companies in this first half have been M&A deals, with an approximate value of US$25.8 billion. There have been some high-profile insurance deals including AXA SA’s bid to acquire XL Group Ltd for US$15.2 billion and American International Group’s agreement to acquire Validus Holdings Ltd for US$5.6 billion.
We have included details of the market activity referenced above in this edition of our update, along with statistical information about the Bermuda public companies market which we hope will be of interest to our legal colleagues, clients and Bermuda market followers.
To continue reading full articles in PDF format:
Bermuda Public Companies Update – July 2018