Jul 2024
This edition of the Bermuda Public Companies Update summarises significant transactions involving Bermuda companies listed on the New York Stock Exchange (NYSE) and Nasdaq in the first half of 2024.
Global Market Update
The first half of 2024 saw an overall 12% decrease in IPO activity, with a total of 551 listings across global exchanges. Capital raised fell by 16% to US$52.2 billion. While the Americas and EMEIA regions are enjoying steady growth, the Asia-Pacific region continues to experience sluggish IPO activity in the face of ongoing geopolitical tensions, higher interest rates, and reduced market liquidity – all of which have increased investor caution. Overall, the mood remains cautiously optimistic, with indications of a potential positive shift for the remaining half of the year balanced by the likely realities of the market’s response to evolving global and economic conditions.
In the Americas, the IPO market is showing signs of recovery after a few years of stagnation. In the first half of this year there were 86 IPOs, raising US$17.8 billion. The NYSE led the way, raising US$12 billion in IPO proceeds and hosting two of the largest listings: Bermuda’s Viking Holdings Ltd (NYSE:VIK) and Cayman Islands company Amer Sports (NYSE:AS). Conyers was pleased to advise on both of these transactions.
The global mergers and acquisitions (M&A) market maintains the cautious optimism it exhibited last year. In the first half of 2024 M&A activity grew by 17%, reaching US$1.6 trillion. Despite this growth, the number of deals fell by 16.1% to 17,170, a significant decline from the nearly 34,000 deals (representing US$2.7 trillion in value) recorded in the second half of 2021. Megadeal activity in the technology and energy sectors is expected to boost deal flow in both volume and value, potentially accelerating market dynamics in the remaining half of the year.
Bermuda Companies
Bermuda’s market activity has held pace with this global deal flow. During the first half of 2024, Bermuda companies raised a total of US$2.73 billion, and market capitalisation stood at US$255.3 billion at 30 June 2024, a US$23 billion gain from Q4 2023.
The standout deal of the year to date is Viking Holdings Ltd’s (NYSE: VIK) (Viking) landmark IPO on the NYSE in May – the biggest US stock market debut of 2024. This upsized IPO raised US$1.77 billion from 73.6 million shares sold by the company and its existing investors. Viking sold 11 million new shares, raising US$264 million, while investors sold approximately 53 million shares and committed to a further 9 million shares. The listing makes Viking the third highest-valued cruise line company in the world with a market valuation of US$10.4 billion.
Dual Listings: A Strategy for Growth
Several companies are pursuing dual listings to enhance their public profiles and expand their market reach. This strategy involves maintaining a primary listing while seeking a secondary listing on another exchange, offering benefits such as increased liquidity, market exposure, access to a wider pool of capital, and a diversified investor base. The effectiveness of dual listings is demonstrated by the success of established companies, particularly in the shipping industry. For example, Hafnia Ltd (NYSE: HAFN, OB: HAFNI)and BW LPG Ltd (NYSE: BWLP, OB:BWLPG), both listed on the Oslo Børs, completed dual listings on the NYSE in April.
The Strategic Move of Delisting
Just as dual listing is a strategic decision, so is delisting. Companies may choose to eliminate dual listings to streamline their operations. Consolidating into a single class of shares can enhance shareholder payouts and create a larger pool of shares available for buybacks. In one such move, Seadrill (NYSE: SDRL) announced in June that the Oslo Børs has approved its delisting from the Oslo Stock Exchange (OSE). Seadrill will maintain a single listing on the NYSE and delist from the Oslo Børs on 10 September 2024. Additionally, Seadrill completed the sale of its interest in a Qatari jack-up fleet in a US$338 million cash deal, selling three rigs and a 50% equity interest in the joint venture operating these rigs to Gulf Drilling International. These strategic actions align with Seadrill’s ongoing efforts to strengthen and simplify its business, allowing the company to focus on core operations.