Listing rules attract US private equity exits

Author: Nicholas Pettifer | Published: 8 Jan 2010

US private equity houses will favour initial public offerings (IPOs) to realise investments this year, partly because listing rules are not as restrictive as those in other jurisdictions.

Listing rules in Hong Kong have deterred some private equity houses from exiting with IPOs. Prescriptive requirements such as profitability and market capitalisation review tests have led investors to do sell-downs on their portfolio companies instead.

“Such rules don’t really exist in the US – they are not in the listing...