Tuesday, May 29, 2007

Wall Street moves on red tape as IPO exodus continues

TyraTech, a maker of environmentally friendly pesticides, became the latest American company to float in London yesterday as growing concerns about the IPO drain from New York to the City prompted the formation of a heavyweight Wall Street panel.

The panel is being set up by Eliot Spitzer, the former attorney-general of New York who is now governor of the state. Mr Spitzer, who has given the panel until June next year to propose legislative changes, said yesterday that “the financial world has changed and we must change with it to retain our leadership position”. TyraTech, a Florida compan that raised £25 million from floating on the Alternative Investment Market (AIM) in London, said that the cost and inconvenience of strict American listing requirements, introduced after the collapse of Enron, were key to its decision to float overseas.

Douglas Armstrong, the chief executive, said: “The Sarbanes-Oxley regulations undoubtedly played a part in our decision to list in London because they place a heavy burden on small-cap companies in terms of time and cost.”

The flotation of TyraTech takes the number of US firms on AIM to about 70.

Labels: cost of regulation, ipo, sarbanes oxley

Tell us what you think. (2) comments.
Send to a friend:

Tuesday, March 20, 2007

Russia Blog: Russian IPOs - Curb Your Enthusiasm?

Improving Corporate Governance in Russia

Another recently released report that attracted comment in the Russian press this week was issued by the international headhunting firm Heidrick & Struggles. It notes that the Russian companies floating on international stock exchanges raise 20% less than their Western counterparts because Russia’s standards for corporate governance are lower. It also shows that investors would pay up to 38% more for shares in Russian companies with good corporate governance. This is a very good argument for the Russian entities engaged in corporate governance, like Russian Institute of Directors or the Institute of Corporate Law and Corporate Governance.

Russia Blog: Russian IPOs - Curb Your Enthusiasm?

Labels: governance, ipo, russia

Tell us what you think. (0) comments.
Send to a friend: