There were no stock market introductions in 2019 by Dutch companies, whereas four took place in 2018. There was, however, one cross-border listing on Euronext Amsterdam. The total IPO activity worldwide fell by 20% to 1,242 IPOs and the capital raised fell by 8% to USD 206.1 billion. Geopolitical uncertainties in key financial markets, such as the US, UK and Hong Kong, tempered the global IPO activity.
Rebecca Kuijpers-Zimmerman, attorney and legal director at Baker McKenzie Amsterdam, said, "The Dutch capital market has also suffered from international political and economic uncertainties, with the result that investors were cautious. As peace returns to the political and economic landscape, investor confidence in the capital market will increase again and hopefully lead to more IPOs in 2020."
Koen Vanhaerents, Global Chair, Capital Markets, also commented, "It has been an interesting year for the global capital markets as unexpected issues, both in the market and politically, have significantly impacted upon activity and investor sentiment. While we entered 2019 on an optimistic note, underperformance of a number of larger listings coupled with heightened political issues saw a more muted end to the year than anticipated."
The only cross-border listing in the Netherlands comes from Marel, supplier of Icelandic food processing systems. They announced their intention in June for a secondary listing and raised USD 302 million. The following companies opted for the direct listing route to Euronext Amsterdam: REIT company, Aedifica; Nasper's holding company, Prosus NV; and Fastned, an electric charging station producer. New shares do not have to be created for direct listing, which offers advantages for companies with a cash deficit who do not want to dilute their shares.
Decrease in cross-border IPO activity
One notable listing that was rumored to list earlier in the year, but was potentially delayed by political unrest or price volatility in Hong Kong until late November, was Alibaba, which listed on 25 November, raising USD 11.2 billion. Two other large listings, Budweiser (USD 5 billion) and ESR's (USD 1.6 billion) listings, which were aborted earlier in the year, also relaunched and listed in the fourth quarter.
Hong Kong was the main destination for cross-border IPOs, both in terms of value and volume. Nasdaq was in second place behind Hong Kong with USD 5.4 billion out of 51 IPOs. EMEA saw a 71% decrease in cross-border IPO activity with only 10 IPOs, which raised USD 4.7 billion.
About Baker McKenzie
Baker McKenzie Amsterdam N.V. has more than 300 employees, including around 160 lawyers, tax specialists, notaries and economists. The office is located at Claude Debussylaan in Amsterdam. Corinne Schot is the managing partner.
• Baker McKenzie Amsterdam was the first law firm in the Netherlands to join a multinational network (1957) and the first firm with an integrated civil, tax and notarial practice.
• Baker McKenzie has been providing high quality advice and legal services to a large number of the world's most dynamic and successful organizations since 1945. Assisting clients in understanding and thriving in various legal, political, social and economic systems has made us not only one of the largest law firms in the world, but also the first firm to have a truly global presence.• Baker McKenzie has 77 offices in 46 countries and has more than 6,000 locally qualified and internationally experienced lawyers, notaries, tax specialists and economists worldwide.