TheStreet.com's Laurie Kulikowski reports this morning that foreign IPOs are up quite a bit already this year as compared to last year's totals. The article indicates that 19 percent of the IPOs on the New York Stock Exchange, NASDAQ and the American Stock Exchange in Q1 2007 were from foreign companies, as opposed to 16 percent for all of 2006.
However, this doesn't necessarily mean concerns that Sarbanes-Oxley is driving foreign firms away were misplaced. What it may mean is that the U.S. is landing more IPOs from companies in emerging markets, the article suggests -- particularly in China and India.
A finance professor from the University of Florida notes that a general upswing in globalization and better clearing increases U.S. investors' interest in foreign listings, even if the majority of foreign IPOs at issue here are relatively small. Most also come from the tech, media and health care sectors, TheStreet.com says.
Nonetheless, this year is poised to be the best year for foreign IPOs on U.S. exchanges in a decade, according to Thomson Financial.