New York remains the world’s capital that attracts the most attention. An example is Avast, which plans to withdraw its shares from London and Prague after the merger with the American NortonLifeLock and trade its securities only on the technological Nasdaq in New York.
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The trend is also confirmed by statistics. According to Bloomberg, European companies are striving to list on the stock exchanges in the United States at the highest rate in the last twenty years. They are attracted both by the prospects of higher valuation of the company and greater liquidity in trading shares.
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On Monday, the Swiss sneaker brand On Holding, backed by tennis star Roger Federer, announced a plan to enter the New York market. Cryptocurrency miner Argo Blockchain also applied to enter the US market on Friday. The British fintech company Wise plans to sell US certificates of deposit (securities that allow companies to trade in foreign markets).
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The three companies will increase the record amount of capital that European companies have raised in the US so far this year, ie $ 9.5 billion, which is the most since 2000.
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Bigger stock market, more money
At the same time, a number of transatlantic IPOs (primary equity subscriptions) are forcing governments and stock exchanges across Europe to make the entry conditions for companies in their home countries more attractive. London wants to introduce more favorable rules for technology companies, and in Germany there have been proposals from politicians to set up a new exchange for domestic startups.
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Companies in the US are attracted to dizzying valuations, for which companies trade in the local markets, as well as the huge liquidity available to investors on Wall Street. “The valuation is usually higher in the United States, especially for loss-making or young technology companies,” commented Gavin Launder, manager of the Legal & General Investment Management fund, for Bloomberg.
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The hunger for new investment opportunities is all the greater as the debuts of Chinese companies have ceased due to Beijing’s stricter policies. The influx of new IPOs from Europe is likely to continue. According to the agencies, the Dutch beverage bottling plant Refresco, for example, will soon go public, and the Italian airline Leonardo said it could return to the IPO of its defense electronics subsidiary, which was canceled in March.
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However, not all debuts in New York will succeed. The Swedish food company Oatly Group, which sells herbal drinks, fell by a third at the start of trading in May and its shares are currently trading six percent below the initial IPO price.
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Czechs in Europe
However, Czech companies that are considering entering the stock exchange are still thinking more about Europe. Companies such as Sazka Group, EP Infrastructure or CETIN are considering Western European markets. As well as, for example, WAG payment solutions by Martin Vohánka, who specializes in payment solutions for transport companies.
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