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Bakers report shows shift in IPO market
A new report produced by Baker McKenzie has highlighted a shift in Asia-Pacific’s IPO market, with more companies waiting longer than ever to go public.
Emma Musgrave
According to Bakers’ report, The Future of Equity Capital Raising: How Private Capital is Re-Shaping Public Markets, 84 per cent of company executives surveyed believe there is a shift from public to private equity markets.
Eighty-four per cent of all executives agreed that companies were waiting longer to go public compared to past experience, while 79 per cent believed that organisations today could raise all the capital they need to grow without ever listing.
In addition, 48 per cent of private companies interviewed believed the amount of private capital available continues to be an important factor in determining when they might list.
“Some organisations have very ambitious growth plans which staying private longer can help them achieve,” said Jackie Lo, partner at Baker McKenzie.
“With plenty of private capital available, companies can constantly re-invest to grow, without the scrutiny of the public markets.”
Koen Vanhaerents, head of global capital markets at Baker McKenzie added: “The rise of private capital due to higher returns and less regulation is set to challenge the role of the public capital markets in the period to come”.
“However, while the traditional route to IPO and the role of public capital markets is experiencing a change, the future IPO pipeline will continue to remain robust. At the same time, rival venues to New York and London are emerging and expected to shake up the future of public listings.”
The Baker McKenzie report comes as Melbourne-headquartered Australian Family Lawyers’ pushes back its IPO plans while it holds further discussions with the ASX.
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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