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We are pleased to present the latest edition of our Bermuda Public Companies Update which features a recap of significant transactions involving Bermuda public companies listed on the NYSE and Nasdaq for the period of Q2 through Q3 2016.
The year to date has been a generally poor one for new listings in the US and worldwide and is the slowest since 2009 globally. In 2015 there were a total of 196 IPOs on the principal US exchanges. As of the end of Q3 2016 there have been only 87 IPOs. Some hope, however, can be derived from Q3 2016 activity, which was the strongest quarter for IPOs thus far in 2016, with 40 IPOs raising US$6.6 billion (even though IPO activity and proceeds still fell short of the levels seen during the same period in prior years). An influx of deals in September indicated that investor appetite for new issuances may be strong.
IPO activity involving Bermuda public companies was relatively strong when compared to the general state of the market. There have been four new listings of Bermuda companies on the NYSE and Nasdaq since our previous edition in May. As foreshadowed in that edition, Triton International (NYSE:TRTN) completed its merger with TAL international Group, Inc. (NYSE:TAL) and the XL Group (NYSE:XL) completed the redomicilation of its parent holding company to Bermuda from Ireland. The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) (Bermuda’s oldest bank) completed its IPO on the NYSE in September. Most recently, Nordic American Offshore Ltd. (NYSE: NAO) redomicled from the Marshall Islands to Bermuda so that it is incorporated in the same jurisdiction as its major shareholder, Nordic American Tankers (NYSE:NAT), thus adding to the growing cadre of Bermuda public companies in the shipping industry (see infographic inside).
On the M&A front, last month Japanese casualty insurer SompoHoldings Inc. announced its acquisition of property and casualty insurance provider Endurance Specialty Holdings Ltd. (NYSE: ENH) for US$6.3 billion. This significant transaction is evidence that last year’s trend of consolidation in the insurance industry is continuing – with particular interest in Bermuda insurers coming from acquirers in Japan and China.
We have included further details of market developments in this edition of our update, along with statistical information about the size of the Bermuda public companies market which we hope will be of interest to our legal colleagues, clients and Bermuda market followers.
To continue reading full articles in PDF format:
Bermuda Public Companies Update – November 2016