“When you ring the bell on the New York Stock Exchange, or wherever you are, there's a lot of focus. But as many of the companies have seen, in a short period of time, liquidity dries up, valuation goes down, and you see negative media articles saying, ‘Hey guys, you know what, this is happening’,” says Equities Market Review Group member Parekh.
Many Asian companies that have gone on to list in the US, where the equities market is the largest and most liquid in the world by far, often find themselves out of the spotlight very quickly.
Neil Parekh hopes such companies will make their way back to this region — including SGX, where there is already a sound secondary listing — and stop being “orphans” if they are to remain only in the large exchanges.
