In recent years, a growing number of companies are turning to cross-border and dual listings as part of their capital markets strategy. While traditional home-market IPOs remain relevant, firms across sectors and geographies are increasingly seeking access to international capital pools, visibility, and valuation premiums by tapping into multiple exchanges. From NASDAQ to Euronext, from London to Dubai, the rationale behind these listings is evolving—driven by market volatility, geopolitical shifts, and investor diversification. Cross-border listings are no longer a luxury—they are fast becoming a strategic necessity.
Strategic Rise of Cross-Border Listings
According to EY’s Global IPO Trends and FT reports:
- In 2024, there were 113 cross-border IPOs globally, up 36% year-over-year from 83 in 2023.
- 101 of those 113 deals (≈89%) listed on U.S. exchanges, cementing the U.S. as the preferred destination for cross-border capital.
- The Asia-Pacific region drove much of this activity, with 87 outbound deals, mostly targeting U.S. markets. This represented a 53% increase from 2023, led by issuers from Mainland China, Hong Kong, Singapore, and Australia.
- In the U.S. market, 55% of all IPOs in 2024 were by foreign issuers, compared to 26% just three years earlier.
- In Q1 2025 alone, 58% of U.S. IPOs were launched by foreign issuers, setting a post-2021 record.
- Surge in Small-Cap Listings: The U.S. small-cap IPO market experienced a notable boom. In the last Quarter of 2024 and the first of 2025, 83 small IPOs were recorded, marking the most active period in 15 years. Notably, only 18 were U.S. issuers, and all but nine of the listings took place on NASDAQ. (FT, May 13, 2025)
These figures reflect a clear trend: companies are increasingly designing their IPO strategies for global capital—not just local relevance.
In particular:
- Tech and biotech firms from Asia and Latin America are leveraging NASDAQ to boost innovation credibility and capture premium multiples.
- European midcaps are tapping exchanges in New York, Dubai or Singapore to expand institutional reach and hedge against EU market saturation.
- Family-owned and mid-sized industrial businesses are exploring dual listings to improve exit optionality, especially as private equity timelines extend.
Beyond capital access, dual and cross-border listings can also:
- Boost trading volume
- Enhance brand visibility
- Increase analyst coverage
All of which contribute to improved shareholder value and long-term market resilience.
The New Drivers: Liquidity, Valuation, and Risk Hedging
In today’s global financial landscape, companies are no longer pursuing cross-border listings purely for access to capital—they are doing so for strategic optionality. These listings offer structural advantages in a world where capital flows, valuation benchmarks, and investor behavior are increasingly globalized.
Key strategic drivers include:
Liquidity Access
Listing on deeper, more liquid exchanges can significantly enhance price discovery, investor engagement, and daily trading volume.
- According to EY (Global IPO Trends 2024), cross-border IPOs listing in the U.S. had materially higher average trading volumes than domestic listings in their home markets.
- U.S. exchanges continue to offer unmatched secondary market depth.
Valuation Arbitrage
Firms from emerging markets often seek higher multiples by accessing global indices—especially technology-heavy venues like NASDAQ.
- For example, LatAm and Southeast Asian tech issuers continue to choose the U.S. over regional exchanges in order to capture valuation premiums and analyst coverage that are less available at home (EY Global IPO Trends 2024).
- Emerging Market Valuation Discounts: As of May 19, 2025, emerging market equities traded at a forward price-to-earnings (P/E) ratio of 12.4, significantly lower than their developed market counterparts. For instance, the S&P 500’s forward P/E ratio stood at 24.37 on the same date. This valuation disparity drives emerging market companies to seek cross-border listings in developed markets to capitalize on higher valuation multiples and broader investor bases.
Geopolitical Diversification
Listing across jurisdictions serves as a hedge against domestic volatility, capital controls, or legal risks.
- In 2024, cross-border IPOs from Latin America and Asia-Pacific surged specifically due to regional policy instability, with companies seeking perceived jurisdictional neutrality by listing in the U.S. or EU (EY Global IPO Trends 2024).
- Institutional investors with global mandates prefer companies listed on regulated, transparent exchanges, influencing firms to pursue cross-border listings.
- For firms in sectors like infrastructure, energy, or fintech, dual listings also help mitigate FX and sovereign risk exposure.
Regulation and Market Access: Making or Breaking the Decision
The feasibility of pursuing a cross-border listing is profoundly influenced by regulatory clarity, compliance capacity, and access to local advisory ecosystems. In last years, several jurisdictions have introduced reforms to streamline these processes, aiming to attract foreign issuers.
Key Developments:
- U.S. SEC’s Enhanced F-1 Review Process: The U.S. Securities and Exchange Commission (SEC) has refined the Form F-1 registration process for foreign private issuers, particularly benefiting tech companies. This streamlined approach reduces the time and complexity associated with U.S. listings, making the market more accessible to international firms.
- Euronext’s Dual Listing Initiatives: Euronext has launched programs to facilitate dual listings for companies from Latin America that adhere to International Financial Reporting Standards (IFRS). These initiatives aim to simplify the listing process and provide Latin American firms with greater access to European capital markets.
- Dubai’s DIFC Regulatory Enhancements: The Dubai International Financial Centre (DIFC) has updated its Prescribed Company Regulations, broadening the eligibility criteria for special purpose vehicles (SPVs). This change allows a wider range of foreign entities to establish SPVs in Dubai, offering benefits such as reduced incorporation costs and simplified compliance requirements.
Ongoing Challenges
Despite these advancements, companies considering cross-border listings must navigate several persistent challenges.
- Tax Complexity: Understanding and managing the tax implications across multiple jurisdictions can be intricate and requires specialized expertise.
- Disclosure Requirements: Meeting the varying disclosure standards of different markets necessitates meticulous preparation and transparency.
- Compliance Costs: The financial burden of adhering to diverse regulatory frameworks can be substantial, often underestimated during initial planning.
To successfully manage these challenges, companies should engage in specialized structuring, coordinate with legal experts across jurisdictions, and develop strategic communication plans to align with investor expectations and regulatory demands.
3Dots’ Role in Cross-Border Listings
At 3Dots, we support companies that view international listings as part of their strategic expansion—not just a capital-raising event.
- We help issuers from high-growth regions structure their entry into U.S. and EU exchanges, aligning corporate governance and investor positioning with market expectations.
- For companies already listed domestically, we support dual listing preparation, working across legal, operational, and branding fronts.
- We also collaborate with institutional partners and listing venues to identify the optimal listing jurisdiction, based on the company’s sector, investor profile, and long-term strategy.
While we do not provide financial advisory or brokerage services, we bridge capital markets strategy and operational execution—so that companies navigating NASDAQ, NYSE, or other First-tier listings don’t do so alone.
In an increasingly fragmented world, 3Dots enables organizations to act global, list smart, and position themselves with agility in the capital markets of tomorrow.
