Jan 2025
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 second half of 2024.
Global Market Update
In the second half of 2024 global capital markets witnessed a gradual recovery, with IPO activity slowly rebounding from the restrained levels of early in the year. Despite this progress, deal volumes remain well below historical norms, reflecting ongoing macroeconomic uncertainties and political pressures.
Global IPO activity declined by 14% in the third quarter of 2024, with proceeds falling 35% to US$24.9 billion from 310 IPOs. While this performance outpaced the first two quarters of the year, volatility peaked in August with market uncertainty levels reaching an all-time high since March 2020.
Many companies opted to delay public listings, prioritising stronger financial positioning and awaiting more favourable conditions. This suggests that we can expect an uptick in IPO activity in 2025.
Regionally, the Asia-Pacific market stabilised, contributing positively to global figures, while the Americas and EMEA regions demonstrated resilience with notable growth in deal numbers and values. A standout debut in the US was the US$18 billion IPO of Lineage Inc (Nasdaq:LINE), the largest public offering since the Arm Holdings (Nasdaq: ARM) US$4.8 billion IPO in 2023.
The global M&A market showed modest growth, with a deal volume of US $3.17 trillion – almost 10% greater than in 2023. This can be attributed in part to greater stability in the US economy and decreased inflation. Factors such as increased regulation, geopolitical tensions and the US presidential election dampened large deal-making activity, with only four deals over US$25 billion announced. But optimism remains for an even stronger M&A landscape in 2025, driven by expectations of deregulation, further improved economic conditions and strategic consolidation opportunities.
Bermuda Companies Update
Deal-making for US listed Bermuda public companies in the second half of 2024 was largely centred on share buyback programs and secondary offerings, reflecting proactive efforts to attract investment, strengthen market positions and drive future growth.
Insurance companies Fidelis Insurance Holdings Limited (NYSE:FIHL), Hamilton Insurance Group, Ltd. (NYSE:HG), RenaissanceRe Holdings Ltd. (NYSE:RNR) and SiriusPoint Ltd (NYSE:SPNT) each announced significant share buybacks totalling US$1.25 billion. Among these, RenaissanceRe stands out with its US$750 million buyback program, representing a 50% increase from its previous share repurchase authorisation of US$500 million. Under the program, RenaissanceRe may repurchase shares through both open market transactions and privately negotiated agreements.
Tiziana Life Sciences Ltd (NasdaqCM:TLSA) announced multiple offerings to raise capital for its ongoing research and development initiatives. Viking Holdings Ltd (NYSE:VIK) also launched a secondary public offering of 30,000,000 ordinary shares as a follow-on to its landmark IPO in May. Viking Holdings Ltd (NYSE:VIK) and Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) emerged among the top five best performing shipping stocks on the exchange in 2024, with share price increases of 63.72% and 46.57%, respectively.
M&A activity among Bermuda public companies followed the slow-moving global trend. Of note is Sixth Street’s acquisition of Enstar Group Limited (“Enstar”) (Nasdaq: ESGR). Enstar is to be acquired by investment company Sixth Street, along with Liberty Strategic Capital, J.C. Flowers & Co. LLC and other institutional investors. The US$5.1 billion definitive merger agreement is anticipated to close in mid-2025.
Finally, the Teekay’s Group’s decision to redomicile two NYSE listed companies to Bermuda from the Marshall Islands is a strong indicator of Bermuda’s continued attractiveness. We discuss this development in greater detail in the document below.