Cross-Border Listings Are Declining, Goldman Sachs Says

The video discusses the current trends and challenges in the IPO market, focusing on corporate spinouts, valuation issues, and the impact of market conditions. It highlights the reasons behind spinouts, such as competitive changes and value release, and examines the valuation discrepancies often seen in IPOs. The discussion also covers the performance of tech IPOs and the decline in cross-border listings, emphasizing the global nature of investment markets.

What are some reasons companies might choose to spin out a business unit?

• To avoid regulatory scrutiny

• To increase competition

• To release value and engage shareholders

• To reduce market share

Why might a company's initial IPO valuation be higher than the final listing price?

• Because of high demand

• Advisors setting unrealistic expectations

• Due to a sellers' market

• Increased competition

What is considered an ideal first-day pop for an IPO?

• 5-10%

• 20-25%

• 50-60%

• 1-2%

What is a significant factor driving the success of tech IPOs?

• Varied views on growth and margins

• Low investor interest

• High initial valuations

• Stable growth rates

Why are cross-border listings declining?

• Global investment trends

• Local markets are more lucrative

• Lack of international interest

• Regulatory challenges