London reinforces reputation as investment hub: Report |
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Published
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Mon, 18 Dec 2006 12:00
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LONDON - The British capital has reinforced its reputation as a global investment hub in 2006 following some big floats this year, according to a survey conducted by Ernst & Young, Dealogic and Thomson Financial.
Overall global stock market listings brought in $227 billion (£116 billion) with the London Stock Exchange accounting for 15 percent of the net offerings. It trailed only the Hong Kong Stock Exchange, which accounted for 17 percent of the net offerings.
The New York Stock Exchange with 11 percent of the net stock market listings came in third this year, the survey said. Hong Kong was the place to be in 2006 as the IPO of Industrial and Commercial Bank of China garnered in $22 billion followed by the $11 billion raised by the Bank of China. Russian energy group Rosneft was the third biggest IPO floating in London and gaining over $10 billion.
In the UK the biggest domestic IPO was that of Standard Life raising almost $4.4 billion.
David Wilkinson, an IPO expert at Ernst & Young felt that the restrictions put in place by the Sarbanes-Oxley corporate governance laws in the US was one of the main reasons for many IPOs debuting outside that country.
"The London markets are proving extremely attractive for foreign investors for a number of reasons. Undoubtedly a desire to move outside of the Sarbanes Oxley corporate governance provisions is part of the mix," he observed. "But just as important, is the fact that a wide range of companies, including small and mid-cap, can attract institutional investment in London."
Ernst & Young said that IPOs would continue to get top bill in 2007, as competition between the various exchanges will only benefit companies.
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