As the world’s largest capital market with c $11.7tn institutional assets under management and over $1tn allocated to non-US listed securities, the US continues to dominate in the debate on how to access new and accessible pools of capital.
To provide guidance to private and public companies on how to access US capital from Europe, and prepare for a potential US IPO, Edison’s Rachel Carroll, managing partner and president of Edison’s US operation and Rob Wotczak, Edison director and former managing director for the NYSE, were joined by a panel of experts on 10 July at Edison’s headquarters in London.
Following a brief introduction by Rob Wotczak, Rachel Carroll spoke of the deep and diverse pools of accessible capital in the US. She highlighted the strong demand from US investors for European equities, with examples of how targeting the right investors can support a fair valuation for company shares and drive incremental trading volumes in the domestic market.
Susan Choe, senior director of corporate governance at Morrow Sodali, went on to discuss the need for strict corporate governance in the US, highlighting the increased pressure from institutions, including BlackRock and Fidelity. She also broached the increasingly environmental, social and governance (ESG) nature of shareholders and activists in the US and how companies can mitigate those risks.
Piers Morgan, Verona Pharma’s chief financial officer, shared Verona’s experience of listing in the US as a dual listed company. He emphasised that 90% of recent US IPOs are given Emerging Growth Company status and discussed the need for small companies to ‘staff up’ for the increased regulatory and legal burden of a US listing.
Finally, Isabella Schidrich, Nasdaq Stock Exchange senior managing director, discussed the advantages of the Nasdaq and explained what it takes to list on the exchange and estimated the costs, in cash and time, of doing so.
Following a brief Q&A session with the panel and attendees, the conference ended with a networking event.