The Japanese tsunami with its negative growth implications and the slow economic recovery in the US combined with the fear of debt default in the Eurozone, indicate that the world is still far from a full recovery.

  However, contrary to the gloomy outlook in the west, Asia is being slated as the world’s growth engine in the coming decades. Last year, China recorded the highest number of IPOs (346), raising $84 billion - more than double the total raised in the US. New Asian issuers, such as Samsonite and Coca Cola (Asia), are preparing for IPOs.

  The Asian capital markets, particularly the Singapore, Hong Kong, Shanghai and Shenzhen stock exchanges, are well-positioned to leverage opportunities within Asia’s vibrant and dynamic economies. The US, by comparison, is falling behind in its number of new listings.

  The competition between West and East can be seen in the merger and consolidation trends between stock markets. So far In 2011, we have already witnessed the “near” consolidation of the two major world exchanges. If these mergers had succeeded, the IPO market may have changed dramatically. The Singapore Stock Exchange attempted unsuccessfully to merge with the Australian Stock Exchange. In addition, NASDAQ attempted unsuccessfully to takeover the New York Stock Exchange, leaving both markets to hunt for new IPOs. The NYSE has continued to gain on NASDAQ and is already ahead so far this year, with LinkedIn’s recent IPO.

  The Western capital markets are well aware of their “real” treat. Hong Kong has recently shown strong domination in the international capital markets with a number of IPOs, such as Samsonite, the luggage manufactuer, with an IPO of $1.51 billion; cosmetics manufacturer L'Occitane International SA, which went public in Hong Kong last year with an IPO that was 160 times oversubscribed; and the insurance giant, the AIA Group Ltd., with an IPO in Hong Kong that was 9.6 times oversubscribed. In addition, the Italian fashion house Prada, is contemplating a Hong Kong IPO that could raise as much as $2 billion and Australia's Resourcehouse Ltd. is also planning to raise $3.6 billion in Hong Kong.

  2011 is the year of social trends, after Linkedin raised $353 million on the NYSE, other social networks are also considering IPOs, such as Facebook, Groupon, and Twitter.

  Israeli companies are aware that the next decade belongs to the Asian markets, in terms of raising capital. When the markets reopen, there will be an appetite among small to medium-sized Israeli companies to reach the global markets. Many will still be interested in the US market, although they will also explore alternative routes, such as the Asian markets, where they can benefit from tax incentives among other benefits for foreign investors.

  How an IR strategy can make all the difference

  Regardless of the market chosen, companies should always engage the services of an investor relations firm. A professional adviser will manage the diverse levels of communication between a company and its varied audiences, including existing and potential investors. Services are performed both before and after the IPO in an effort to maximize the firm's equity valuation.  
  One of the essential steps in accessing capital is telling the company's story — delivering the most accurate picture of the company's performance and prospects to the market. It is especially crucial that international companies without any presence in the capital market address the needs and manage the expectations of their target audiences abroad. They must build shareholder value by establishing relationships and effective communication within the capital markets community. Such activity is highly complex and needs to be handled strategically and professionally by a local professional familiar with the system and dedicated to maintaining relationships within the financial markets.

  The most influential contacts company management needs to attract are in the investment community, namely institutional investors, analysts, fund managers and brokers. The company also needs to tell its story to the financial media via a variety of communication channels, including the written press, Web-based media, television and radio.

  Finally, and not least significant, the company needs to attract and sustain the attention of commercial contacts, such as existing and prospective customers, partners, employees and competitors. Proper management of these contacts can encourage investors to track and buy company shares.
 
For more information please contact Amira Bardichev at:
amira@global-equity-ir.co.uk     +65-96441854       www.global-equity-ir.co.uk