Bob McCooey, Nasdaq’s Chairman of Asia Pacific and Global Head of Capital Markets, spoke with CNBC Asia's Squawk Box program on November 16. He discussed the YoY increase in China-based Initial Public Offerings in the United States and the strong activity pouring in from APAC.
The U.S. is experiencing a strong fourth quarter as a beehive of activity has pushed the markets higher in recent weeks. There is also an increase in active growth globally, especially in Asia where increased growth opportunities and an increased runway have encouraged more life science, ecommerce, and education businesses to come forward to tap the public markets. Boasting just over 350 IPOs this year, the Chinese markets have been quite active as opposed to in recent years when they were more dormant. With additional reform and a more welcoming environment, the Chinese markets are experiencing exponential growth post-financial crisis.
Commenting on the current IPO landscape and the environment for APAC companies to go public, McCooey responded:
“We had double the amount of IPOs here in the U.S. [year-to-date] than we had last year. There were only nine IPOs from China in the U.S. last year. There have been 20 so far [this year], and on file there are another 12 companies—so there could be as many as 32 total for 2017.
Addressing APAC listings coming to Nasdaq versus their local markets, he added:
“We're only going to have a small number of companies from the [Asia-Pacific] region that will come to our market anyway. They are companies that are in certain sectors [and] have global aspirations who want to be among the fantastic companies and different sectors that are already listed on Nasdaq.”
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