CIBC World Markets is highly experienced in all aspects of U.S.
securities markets’ listings and can advise European companies
throughout the process
Role of the investment bank
CIBC World Markets
A guide for European companies to listing on the U.S. securities markets 17
For any European company, the decision to
initiate an offering into the U.S. securities
markets is a major event, requiring detailed
consideration of a wide range of issues. Perhaps
more than any other participant in this process,
the investment bank plays a pivotal role in
guiding companies through the various issues.
The investment bank assists the issuer
across a number of vitally important areas:
analyzing the industry sector and the company
to ensure that there will be U.S. investor
demand for the company’s shares, structuring
the deal, valuing the business and refining a
strategy for marketing the offering to investors.
As the overall co-ordinator of the offering and
the lead participant in the issuer’s team of
professional advisors, it is the investment
bank’s abilities that will dictate whether,
ultimately, the offering succeeds or fails.
Going public in the U.S.
The immediate priority for the investment bank
is to help the company identify key issues,
notably whether an IPO or, in the case of a
foreign company which is already listed, a
secondary offering of ADRs, is indeed the best
course of action. Amongst the main
advantages of going public in the U.S., the
following stand out:
Access to a broad and deep investor base
Successfully executed, an IPO in the U.S.
securities markets provides immediate access to
the U.S. public markets, opening up a vast
source of corporate funding and broadening the
existing investor base. A more diverse
shareholder structure with adequately balanced
regional exposure and risk profile provides
additional stability and longer-term benefits. Also:
• From the moment of the offering onwards,
the company has access