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 period Q4 2016 through Q1 2017.
IPO activity on the NYSE and Nasdaq in Q4 2016 (33 IPOs) was modestly higher than the same period in 2015 (31 IPOs). Overall, 2016 was a relatively quiet year for IPOs and M&A activity in the US market. There were 111 IPOs in the US last year, down from 174 that launched in 2015. In terms of the number of IPOs and aggregate amount of capital raised, 2016 was the slowest year for deal activity since 2009, when there were only 64 IPOs on the principal US stock exchanges. The trend for Q1 2017 has been a continuation from last year, with Q1 seeing 24 IPOs raising approximately US$11 billion. These results represent the slowest quarter in six years. On the bright side, average deal size of the Q1 2017 IPOs increased 74% over the same quarter in 2016.
Set against this backdrop, the activity level of Bermuda public companies on the NYSE and Nasdaq was relatively strong in 2016 as Bermuda companies raised approximately US$9 billion – more than any other offshore jurisdiction. Six new Bermuda companies were listed on these exchanges in 2016. There were three IPOs (Bank of N.T. Butterfield & Son Limited, Myovant Sciences Ltd. and Athene Holding Ltd.) and three migrations TAL/Triton, Nordic American Offshore and XL Group. All of the new Bermuda public company IPOs were launched in 2H 2016 and Conyers acted as issuer’s counsel on all of them. The number of Bermuda public company issuers and the market capitalization represented by such companies continues to grow, as is evidenced by the graphic on page 2.
Since the EU Market Abuse Regulation came into effect, we have noticed an increased use of the Bermuda Stock Exchange for debt issuers looking for an alternative to an EU market listing. This recent development is discussed further on page 3. We have also provided details of the transactions referenced above, along with statistical information about the size and growth of the Bermuda public companies market, which we hope will be of interest to our legal colleagues, clients and Bermuda market followers.
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Bermuda Public Companies Update – May 2017