Ib Case
Should emgs go public in Norway or the US?
The manager tried to decide whether emg list on Oslo Bors or U.S exchange. The detailed analysis follows up: • Initial preparation efforts and cost
The Oslo Bors listing may be much easier and cheaper choice than the U.S exchange one. The financial policies and principles are not big problem since emg had already change its accounting from the Norwegian krona to U.S dollars. However, the U.S listing will cost more upfront legal fees, recruitment fees and underwriting expenses. Because the company do not know the regulation of U.S as well as they do about that of Oslo. More talented person should be hired to assist emg if the company wants to list on U.S exchange. • Ongoing cost to support the listing
The same with the former idea, listing on the U.S exchange will cost several million dollars annually in hiring people to assist the business of emg. • Long term liquidity
Oslo has a heavy weight in the oil and gas field, making the market may a bit vulnerable to some changes and fluctuations. The volume of trading in Oslo is far less than that of U.S exchange and the effect of the management from the administration is limited. • Ability to raise sufficient capital
Oslo Bors may not have the capability to accommodate emg’s proposed listing demand. The former companies listed are larger and more profitable than emg. • emg’s reputation
In U.S market, emg will get more benefit to strengthen its brand and reputation. On the other hand, emg can enhance its prestige in Norway as well. However it is not big because the different maturity level of the market between U.S and Norway. • Warburg Pincus's reputation
Warburg is a company, which actives in U.S market but is not well known enough in Oslo market. • Management’s comfort zone
The U.S different management team theory may be quite difficult for emg to adapt. Oslo’s small friendly business community would be more conductive and profitable. The same situation
The manager tried to decide whether emg list on Oslo Bors or U.S exchange. The detailed analysis follows up: • Initial preparation efforts and cost
The Oslo Bors listing may be much easier and cheaper choice than the U.S exchange one. The financial policies and principles are not big problem since emg had already change its accounting from the Norwegian krona to U.S dollars. However, the U.S listing will cost more upfront legal fees, recruitment fees and underwriting expenses. Because the company do not know the regulation of U.S as well as they do about that of Oslo. More talented person should be hired to assist emg if the company wants to list on U.S exchange. • Ongoing cost to support the listing
The same with the former idea, listing on the U.S exchange will cost several million dollars annually in hiring people to assist the business of emg. • Long term liquidity
Oslo has a heavy weight in the oil and gas field, making the market may a bit vulnerable to some changes and fluctuations. The volume of trading in Oslo is far less than that of U.S exchange and the effect of the management from the administration is limited. • Ability to raise sufficient capital
Oslo Bors may not have the capability to accommodate emg’s proposed listing demand. The former companies listed are larger and more profitable than emg. • emg’s reputation
In U.S market, emg will get more benefit to strengthen its brand and reputation. On the other hand, emg can enhance its prestige in Norway as well. However it is not big because the different maturity level of the market between U.S and Norway. • Warburg Pincus's reputation
Warburg is a company, which actives in U.S market but is not well known enough in Oslo market. • Management’s comfort zone
The U.S different management team theory may be quite difficult for emg to adapt. Oslo’s small friendly business community would be more conductive and profitable. The same situation