It's a blockbuster year for emerging market IPOs

Thanks to companies' and investors' risk navigation.

Despite stocks coming off highs in recent weeks, it has been noted that initial public offerings (IPOs) from emerging market issuers are still set for a blockbuster year as companies and investors become better at navigating risk.

According to a research note from Baker & McKenzie, bolstered by the Alibaba IPO, equity capital raised across borders by emerging market companies has already surpassed any year since 2007.

The report further noted that new research has found that cross-border IPOs from emerging market issuers have seen a 154% increase in capital raised in the first three quarters of 2014 as compared to 2013.

Exchanges of choice for emerging market issuers over the past five years have been the Hong Kong Stock Exchange, the New York Stock Exchange, the London Stock Exchange and Nasdaq.

Here's more from Baker & McKenzie:

Emerging market issuers have raised more than $138 billion in 373 IPOs in the past five years on these four exchanges alone.

As developing countries increasingly tap equity markets outside of their home jurisdictions, the importance of properly disclosing risk has escalated for both issuers and investors.

Koen Vanhaerents, global head of capital markets at Baker & McKenzie said, "Emerging equity had a great year until shortly after the Alibaba IPO.

With deals now being postponed amid amid greater volatility caused by economic and geopolitical headwinds, it's essential for any would-be issuer to undertake a comprehensive assessment of the risks and challenges that they face and to document these properly if they are to convince international investors that their story is worth buying into."

To assist issuers with better assessing and disclosing risks when raising capital outside of their home jurisdictions, Baker & McKenzie has released its latest publication, Troubled Waters: Navigating risk in crossborder capital raisings.

The report provides an overview of some of the risk factors that are attracting specific interest from investors and regulators or are otherwise particularly relevant to companies operating in emerging markets.

It offers practical guidance on how companies can better assess the risks applicable to their particular business and manage the disclosure of these issues in ways that demonstrate a considered understanding of their impact.

It also shows how comprehensive assessment of these external risk factors can be used to develop a strategy with which to mitigate them and improve returns for investors.