NYSE EURONEXT OVERVIEW March 2013
NYSE EURONEXT OVERVIEW
March 2013
NYSE EURONEXT OVERVIEW
Issuers: >1,100 Total Mkt Cap: $2.3tr AD Trading1: $6.7bn % Global Trading: 4%
Issuers: >2,200 Total Mkt Cap: $18.6tr AD Trading1: $56bn % Global Trading: 28%
Paris Amsterdam Brussels Lisbon London
NYSE Euronext Markets Open Continuously 13 hours
European Markets 8:00am GMT → 4:30pm GMT
US Markets 2:30pm GMT → 9:00pm GMT
111 68 23 120 11 10 4 40 11 35 # of
Deals
382 175 349 357 325 33 609 73 56 49 # of Deals
32% of the World’s Cash Equity Trading Takes Place on NYSE Euronext
3 Source: Bloomberg, NYSE Euronext Research, World Federation of Exchanges
1) Average Daily Trading value last 12 months 2) Dealogic as of November 29, 2012
Note: USD/EUR (Average 2011): 0.718865. USD/EUR (as of December 31st, 2011): 0.7894 Note: Excluding unregulated markets (Marché Libre: 268 listed companies)
FastPath
LEADER IN THE US AND EUROPE
NYSE EURONEXT: US MARKET OVERVIEW
Facilitate partnerships
Collaborate with the world’s most influential Global business leaders
Participate in networking events
THE WORLD’S LEADING COMPANIES ARE ON THE NYSE
87% of the Dow Jones Industrial Average
79% of the S&P 500
85% of the 2012 Barron’s 500
78% of the 2012 Fortune 500
6 of the 2012 Fortune Top 10 Globally Admired Brands
Financials
Industrials
Healthcare
Consumer / Services
Materials
Energy / Utilities
Tech / Media / Telecom
96%
82%
93%
77%
88%
99%
45%
5
JUMPSTART OUR BUSINESS STARTUPS ACT (JOBS ACT)
The JOBS Act will make it easier for entrepreneurs and small businesses to access capital through the public and private markets
The bill eases the IPO process and subsequent reporting obligations for emerging growth companies, and loosens restrictions on pre-IPO research among other provisions
NYX was proud to partner with the private sector IPO Task Force which began studying access to capital issues and identifying solutions after a conference at the Treasury Department last March. The recommendations produced by the Task Force were the basis of legislation known as the “IPO on-ramp” which was included in the JOBS Act
6
MANCHESTER UNITED IPO – JOBS ACT WORKING FOR INTERNATIONAL
COMPANIES
7
Deal Summary:
Pricing date: August 9th, 2012
Issuer nationality: United Kingdom
Shares offered: 16.7 million shares
Capital raised: $234 million
Market cap at offer: $2,292 million
Bookrunners: Jefferies, Credit Suisse, JP Morgan
Source: SEC, Dealogic
Manchester United priced its IPO on the NYSE on August 9th 2012 raising $234 million with 16.7 million shares offered
The Company initially planned to list in Asia (Hong-Kong and Singapore) and after several attempts decided to come back to the NYSE to ensure IPO execution. The listing process was completed within 5 weeks
“This feels like it’s a fantastic opportunity,” “The story has been incredibly well received, especially in the U.S.” Ed Woodward, Vice Chairman of Manchester United
64 US Emerging Growth Companies (EGCs) have floated since the first offering on April 12th, raising a combined $10.3bn. Indeed, EGC IPOs are currently trading up by 19% on average compared with non-EGC IPOs (up 13%)
POSITIVE REGULATORY TREND FOR FOREIGN PRIVATE ISSUERS
International companies listing in the U.S. are NOT required to:
Report on a quarterly basis*
Have a majority independent board
Have a compensation or nominating committee
Receive shareholder approval for equity compensation or other stock issuances
International companies listing in the U.S. CAN:
Use IFRS* (in its original IASB version) instead of U.S. GAAP
Follow home country corporate governance practices
List ADRs or Common Shares (same requirements)
International companies are REQUIRED TO follow selected key provisions of SOX:
Have an independent audit committee, which can be as small as one member
Abide by the internal control requirements of SOX 404 - continuous cost reductions with the elimination of excessive testing (materiality) and documentation
Note: * Legal requirements. Nevertheless, a number of companies choose to report quarterly or to reconcile in US GAAP to be compared with US peers 8
With the cost of SOX compliance decreasing, a growing number of non-US companies are seeking a
NYSE/NYSE Amex listing
Companies’ Efforts Benefit Both External and Internal Constituents
The 10 Years after SOX (2002)
“Sarbanes-Oxley […] allowed me to drive through an initiative in two years that might otherwise have taken five.” - Michel Demaré, CFO, ABB, Switzerland
“Aviva has been able to complete the preparations for listing . . . This enhances Aviva’s financial processes, controls and risk management frameworks, bringing with it Sarbanes-Oxley compliance and broader risk management benefits for the group.” - Aviva plc announcement re intention to list on NYSE.
“. . . since IFRS is now accepted in the U.S., our listing and compliance requirements have been simplified, saving us considerable time and money.” - Suresh Senapaty, Chief Financial Officer, Wipro Limited
Recent SOX and IFRS reforms drive favorable changes in the US regulatory environment.
Over 250 international companies have joined the NYSE since the implementation of SOX.
OVERVIEW OF GLOBAL IPO MARKETS
US remains the exchange venue of choice for international issuers
NYSE raised >7x as much money in International IPOs last year than Nasdaq ($5.7bn vs. $776m)
US investors are often more sophisticated, giving US listed companies higher valuations than companies listed on European or Asian exchanges
Recent U.S. IPOs have outperformed over the past two months despite weakening trends across the broader markets
9
US Dominates International Listing Venues
US IPO Indices: 1-Month Trailing Performance
Source: Morgan Stanley and Dealogic (only data for 2012) as of 27th December 2012
Increasing trend in US listings from EMEA companies with 10 IPOs in 2012 and 20 since 2010
70% market share for the NYSE in number of deals and 52% market share in capital raised since 2010
NYSE ATTRACTS THE LARGE MAJORITY OF EMEA US IPOS
EMEA US LISTINGS SINCE 2010 IPO Date Issuer Listing
Venue Deal Value
($m) Market Cap
($m) Country Industry
02-Nov-12 Delek Logistics Partners NYSE 168 252 Israel Energy
19-Oct-12 Seadrill Partners NYSE 193 910 UK/Norway Drilling / Energy
10-Oct-12 Amira Nature Foods NYSE 90 336 U.A.E. / India Food & Beverages
02-Oct-12 Luxfer NYSE 80 262 UK Industrials
04-Oct-12 Fleetmatics NYSE 133 585 Ireland Tech
09-Aug-12 Manchester United NYSE 233 2,292 UK Consumer
29-Mar-12 GasLog NYSE 329 879 Greece Transportation
01-Feb-12 AVG Technologies NYSE 128 870 Czech Rep. Tech
14-Apr-11 Sequans NYSE 77 344 France Tech
13-Apr-11 Box Ships NYSE 132 193 Greece Transport
27-Jan-11 InterXion NYSE 305 845 Netherlands Telecoms
03-Nov-10 Costamare Inc NYSE 160 724 Greece Transport
29-Sep-10 Elster Group NYSE 242 1,467 Germany Tech
11-Mar-10 Crude Carriers NYSE 257 295 Greece Transport
Issuer Filed Deal Size ($m) Listing Venue Country Industry GFI Software 100 NYSE Lux. Tech
Eros International 250 NYSE India Media
Ceva Logistics 400 NYSE Lux. Transport
Intelsat 1,750 NYSE Lux. Tech
Avast 100 Nasdaq Czech Rep. Tech
CURRENT PUBLIC FILINGS
10
NEW HOME FOR NEW
GENERATION OF TECH
ENTERPISE
Attracting technology companies from around the world
NYSE share of Tech IPOs has increased 4x since introduction of new listing standard
With more than 50% market share, the NYSE has become the preferred platform for U.S. listed Technology IPOs
Note: NYSE filed logos include IPOs that have filed with NYSE but not completed offering yet; *Companies have recently been acquired; **Transfer from Nasdaq to NYSE; Market share of tech IPOs based on number of IPOs; includes deals > $40mm
NYSE-Filed Technology Companies
**
*
Selected NYSE Tech Listings 2007-2012
**
11
NYSE UPDATE: NYSE DOMINATING TECHNOLOGY IPOS
12
Forbes Top Tech IPOs Of 2012 NYSE is now the preferred platform for Tech IPOs
In 2012 NYSE listed >50% of all tech IPOs
NYSE listed 70% of the top 10 and 80% of the
top 20 Tech IPOs of 2012
Since 2008 NYSE’s Tech IPO market share has
increased >4x
Market Share of Forbes Top Tech IPOs of 2012 By Number of Companies
($ in millions)
Rank1 Issuer Market Cap2 Sector
1 $56,890 Internet
2 $9,288 Software
3 $4,062 Services
4 $3,741 Communications
5 $2,896 Software
6 $2,873 Fin Tech
7 $1,800 Internet
8 $1,702 Software
9 $1,407 Communications
10 $1,379 Software
11 $1,203 Internet
12 $1,017 Internet
13 $956 Software
14 $872 Communications
15 $872 Software
16 $863 Services
17 $811 Internet
18 $801 Internet
19 $798 Software
20 $785 Services
Source: Forbes, 1/3/2013; sector classification by NYSE Grey shading indicates NYSE-listing (1) Ranked by market cap per Forbes, 1/3/2013 (2) Market cap per Forbes, 1/3/2013 (3) Acquired by Priceline on 11/8/2012 (4) Acquired by Oracle on 12/20/2012
Source: Forbes, 1/3/2013
3
4
Nasdaq
Nasdaq
Nasdaq
Nasdaq
EPAM Systems, a provider of software engineering services with development centres in Russia, Belarus, Ukraine and Hungary chose the NYSE launched a US$133m IPO which is expected to price on February 7
EPAM Systems is a leading global IT services provider focused on complex software product development services, software engineering and vertically-oriented custom development solutions. Since inception in 1993, it has been serving independent software vendors (ISVs) and technology companies. Clients primarily consist in corporations in multiple industries located in North America, Europe and CIS including Citigroup, Coca-Cola Co and Google
EPAM Systems priced on February 7, 2012 via Citigroup, Barclays, UBS and Renaissance Capital, 8.5 million shares including a 1.1 million over-allotment option price d at $12. At top-end pricing, EPAM would have a market capitalisation of US$732m.
Affiliates of Siguler Guff & Co. plan to trim their stake in the company to 41 percent after the IPO from 53 percent.
Deal Summary:
Expected pricing date: February 7, 2012
Country of incorporation: US
Shares offered*: 8.5 million shares
Capital raised**: $55 million
Market cap at offer**: $488 million
Price: $12.00
2011** Revenues $239.4m
2011** Net Income $32.0m
Bookrunners: Citigroup Global Markets
UBS, BarCap
Renaissance Securities
Source: SEC, Dealogic *including over-allotment option **Full Year ended September,30th, 2011
VC-Firms Involved in the Capital Ownership Post-IPO in %
41.2%
3.0%
6%
4.8%
“The company is taking advantage of the strong investor appeal and relative success of tech offerings in an otherwise difficult market for primary issuance.”
Source: International Financing Review
EPAM SYSTEMS SELECTS THE NYSE FOR ITS SOFTWARE IPO –
FEBRUARY 2012
13
A NYSE LISTING OPENS THE DOOR TO NEW
INVESTORS
# Holder Name Country Value held ($m) Total Equity Assets ($m) Value held % of Total Equity
Assets
1 Lazard Asset Mgmt. United States 707.8 68,388.6 1.0%
2 Capital Research & Mgmt. United States 643.9 312,228.5 0.2%
3 BlackRock Fund Advisors United States 282.9 856,454.3 0.0%
4 The Vanguard Group United States 270.9 961,879.3 0.0%
5 Comgest France 248.1 11,491.8 2.2%
6 JPMorgan Asset Mgmt. United Kingdom 181.6 82,962.7 0.2%
7 UBS Global Asset Mgmt. United States 159.0 64,015.9 0.2%
8 Schroder Investment Mgmt. United Kingdom 156.1 85,091.2 0.2%
9 State Street Global Advisors United States 145.4 702,384.2 0.0%
10 Baring Asset Mgmt. United Kingdom 124.6 9,142.9 1.4%
# Holder Name Country Value held ($m) Total Equity Assets ($m) Value held % of Total Equity Assets
1 Pictet Asset Mgmt. UK 136.7 7,790.0 1.8%
2 Swedbank Robur Sweden 99.8 46,813.9 0.2%
3 BNP Paribas Asset Mgmt. France 92.3 16,640.8 0.6%
4 APG Asset Mgmt. Netherlands 58.2 104,968.4 0.1%
5 DWS Investment Germany 52.7 54,008.3 0.1%
6 East Capital Sweden 41.3 2,900.4 1.4%
7 JPMorgan Asset Mgmt. UK 40.8 82,962.7 0.0%
8 Fidelity Mgmt.& Research Hong Kong 36.9 7,222.9 0.5%
9 Parametric Portfolio US 31.9 36,096.8 0.1%
10 SEB Varahaldus Estonia 23.1 1,110.2 2.1%
Top 10 Institutional Investors in MTS on MICEX
Top 10 Institutional Investors in MTS on NYSE
14 Source: Lionshares as of 10th December 2012
Integrity
Trust
Credibility
Prestige
PARTNER WITH AN INSTITUTION RICH IN HISTORY AND INNOVATION
Contacts
15
Albert Ganyushin
Head of International Listings European Corporate Client Group
+44.20.7379.2560 [email protected]
DISCLAIMER
This presentation is for informational and educational purposes only. The information and materials contained in this presentation are provided ‘as is’ and NYSE Euronext does not warrant the accuracy, adequacy or completeness of the information and materials and expressly disclaims liability for errors or omissions. None of the information contained in this presentation constitutes an offer, solicitation or recommendation to acquire or dispose of any security or investment or to engage in any other transaction or to provide legal, tax, accounting or investment advice or services regarding the suitability or profitability of any security or investment.
NYSE Euronext has not made any recommendations regarding the merit of any company, security or other financial product or investment identified in the presentation, made any recommendation regarding the purchase or sale of any such company, security, financial product or investment, or endorsed or sponsored any company identified in this presentation.
16