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Wire & Cable ASIA – September/October 2011
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the United States. Besides Australia, they turned to stock
markets in Britain, Taiwan, South Korea and Canada.” Citing
data from the accounting firm Grant Thornton (Chicago) and
the British-based consultancy Dealogic, Mr Bowley noted
that the 10 US companies that went public abroad in 2010
– and 75 from 2000 to 2009 – compare with only two US
companies choosing foreign exchanges from 1991 to 1999.
The trend, he believes, reflects a decidedly global outlook
toward stocks, just as the number of public companies in
the US is shrinking.
According to the World Federation of Exchanges, from a
peak of more than 8,800 American companies at the end
of 1997, that number fell to about 5,100 by the end of 2009:
a 40% decline. (“Fast-Growing Companies Look Abroad for
Investors,” 7
th
June).
The former Brussels bureau chief for the
Herald Tribune
pointed out that some companies have merged, or gone out
of business, or been taken private by private equity firms.
Other young businesses have chosen to sell themselves to
bigger companies rather than go public. And, certainly, as
the economy improves and investors shaken by the financial
crisis begin to regain confidence, American stock markets
may once again open up for companies trying to go public.
Listings may rise.
Right now, however, nearly three years since the financial
crisis began, markets in the United States are barely open to
many companies, leading them to turn to investors abroad.
As Mr Bowley wrote: “Denied a chance to list their stock and
go public [at home], they are finding ready buyers of their
shares on foreign markets.”
The jobs connection
❖
❖
As with all business trends in the US in a period of
persistent unemployment, the venture capital quest
is being monitored for its jobs-related significance.
Executives and analysts consulted by the
Herald
Tribune
expressed concern that, as young, fast-growing
companies are forced to look overseas for public status
and investors, they may increasingly shift their geographic
focus. As a result, any jobs they create will be abroad.
David Weild, a former vice-chairman of the New York-
based securities exchange NASDAQ, told Mr Bowley:
“Issuers have to put themselves through a grinder to
go overseas, so any significant percentage of overseas
listings is a sign that our markets have become hostile to
innovation and job formation.”
❖
❖
Small business is also a worry point in Canada, in an
otherwise favourable outlook for employment. The
Canadian jobless rate fell to its lowest level in more
than two years in May as a combination of more jobs
and fewer people seeking work pushed the rate to 7.4%.
Statistics Canada said 22,300 new jobs were created in
the month, the most recent for which data is available.
This was slightly above consensus estimates.
But, as noted by Julian Beltrame of the Canadian Press,
while all the jobs were full-time, they came in the self-
employment category, which could indicate that many
Canadians turned to creating their own occupation
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