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CHOOSING THE EXCHANGE Sonera viewpoint Jari Jaakkola

CHOOSING THE EXCHANGE Sonera viewpoint Jari Jaakkola. CHOOSING THE EXCHANGE Company track record. Listed on 11/98 in Helsinki with a market capitalisation of 5.5 billion euros Free float 22.2%, Finnish Government largest shareholder

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CHOOSING THE EXCHANGE Sonera viewpoint Jari Jaakkola

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  1. CHOOSING THE EXCHANGE Sonera viewpoint Jari Jaakkola

  2. CHOOSING THE EXCHANGECompany track record • Listed on 11/98 in Helsinki with a market capitalisation of 5.5 billion euros • Free float 22.2%, Finnish Government largest shareholder • Secondary offering on 10/99, free float to 42%, market cap 17.1 billion euros • SEC registration, NASDAQ listing 10/99 • Current free float 47%, market cap 32 billion euros

  3. CHOOSING THE EXCHANGEKey considerations • Company strategy • Processes • Investor requirements • Analysis: benefits vs. costs • Market place developments

  4. CHOOSING THE EXCHANGESonera - aiming to be global • Helsinki: natural first step • Global service businesses launched in the autumn 1999 • In fast moving IT- and telecommunications business - US a relevant market • Profile raised - high visibility sought

  5. CHOOSING THE EXCHANGENYSE • Offers recognition, prestige • Market specialist to execute trades • Specialist may mitigate volatility in certain instances • Reliance on one specialist can be problematic • More stringent listing requirements • More expensive to obtain and mainatin listing • If desired by issues, more difficult to delist securities than on NASDAQ

  6. CHOOSING THE EXCHANGENASDAQ • Offers substantially the same liquidity as NYSE for comparable companies • Offers substantial number of market makers enhancing effective execution • Never halts for order imbalances • Less restrictive requirements for listing • Less expensive to obtain and maintain listing • Potentially increased volatility

  7. Choosing the ExchangeNYSE vs. NASDAQ • NYSE • NASDAQ • Total Market Capitalisation (US$ bn)1 • Number of Listed Companies1 • Top 5 Market Capitalisations1 • Average Market Value • per Company (US$ bn)1 • Average Daily Volume (Share)2 • Composite Index • Performance 1998 • 1999 YTD3 • 10,900 • 3,114 • General Electric ($334 bn) • Wal-Mart ($181 bn) • Exxon ($178 bn) • Merck ($176 bn) • Pfizer ($162 bn) • 3.5 • 771m • 31.2% • 16.4% • 1.2% • 2,600 • 5,068 • Microsoft ($346 bn) • Intel ($198 bn) • Cisco Systems ($147 bn) • MCI Worldcom ($132 bn) • Dell Computer ($93 bn) • 0.51 • 918m • 22.6% • 39.6% • 8.3% 1997 1 As of 31 December 1998 2 January to December 1998 3 As of 8th March 1999

  8. CHOOSING THE EXCHANGENYSE vs. NASDAQ • Both could have done the job... • Sonera profile suited well to NASDAQ • First 200 days: • Liquidity ok, US institutions still trade a lot in Helsinki • 15 000 retail investors

  9. Sonera´s Ownership Breakdown Domestic institutional and retail In State ownership, Government is seeking authorization to sell 13% 34% 34% Foreign investors 19% In State ownership, authorization to sell Finnish State 53% Private Shareholders 47%

  10. Global Shareholder Report Investment Orientation Comparison 41% 41% 40% 36% 35% 29% % of Shares Identified 24% 19% 14% 11% 9% 1% Growth Value GARP Index IPO April 1999 March 2000

  11. Sonera Share Price in HEX

  12. CHOOSING THE EXCHANGEFuture requirements and trends • Liquidity, liquidity and liquidity • Multiple listings in one time zone not likely • A global company needs to consider 3 zones • Will orders flow to the next zone?

  13. CHOOSING THE EXCHANGEFuture wishes • One set of requirements and reporting • Global concept, local presence • Different market places for different companies

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