This edition of the Bermuda Public Companies Update summarises significant transactions involving Bermuda companies listed on the New York Stock Exchange and Nasdaq in the first half of 2023.
Global Market Update
After the sluggishness in global markets that continued throughout 2022, the first half of 2023 has been showing signs of new life. Although worldwide financial uncertainty continues, as does the war in Europe, it appears that the global inflation spike as well as central bank interest rate hikes may be easing.
It looks like the market for US initial public offerings (IPOs) may be starting to revive after last year’s record lows. Retail and hospitality companies have recently traded above their IPO pricing, while companies in other sectors, such as energy and insurance, had to cut their price range and have traded below their initial IPO pricing targets.
Global merger and acquisition deals suffered a record decline in the first half of 2023. M&A volumes fell for the sixth consecutive quarter in the North American market, with just 61 deals between April and June 2023 worth more than US$100 million.
Bermuda Companies Update
Bermuda-based companies have been part of the recent revival in IPOs, with three new NYSE listings in the first half of 2023. Two of the new entrants are shipping companies now dual-listed in both New York and Oslo: Cool Company Ltd (NYSE CLCO; OB:CLCO) and Himalaya Shipping Ltd. (OB:HSHP; NYSE:HSHP). Then, on 29 June, Fidelis Insurance Holdings Limited (NYSE:FIHL), the global re/insurer headquartered in Bermuda, with offices in Ireland and the United Kingdom, raised approximately US$210 million through its IPO on the NYSE.
The ranks of US-listed, Bermuda-based companies is set to increase further in November following a July shareholder vote that approved a proposal for Liberty Global (Nasdaq:LBTY) to change its place of incorporation to Bermuda from England and Wales.
In contrast to the North American trend, Bermuda companies have been involved in several substantial mergers and acquisitions: the Brookfield Reinsurance Ltd. (NYSE:BNRE; TSX:BNRE) acquisition of Argo Group International Holdings, Ltd. (NYSE:ARGO) for US$1.1 billion; the Brookfield Infrastructure Corporation (NYSE:BIPC; TSX:BIPC) acquisition of Triton International Limited (NYSE:TRTN) for US$4.7 billion; and the merger between Bunge Limited (NYSE:BG) and Viterra.
During the first half of 2023, Bermuda companies raised a total of US$5.2 billion. Market capitalisation stood at US$222 billion at 30 June 2023. Sizeable equity offerings included the following:
- Everest Re Group, Ltd. (NYSE:RE) completed a US$1.3 billion offering of 3,600,000 common shares in May.
- RenaissanceRe Holdings Ltd. (NYSE:RNR) completed a US$1.2 billion offering of 6,300,000 of its common shares in June.
- Roivant Sciences Ltd. (NasdaqGM:ROIV) made a US$200 million public offering of notes in February.