Q1 14 Global IPO update. January March 2014

Transcription

1 Q1 14 Global IPO update January March 214

2 Table of contents Section Content Slides January March* highlights Global IPO activity trends Global analysis Regional analysis Industry analysis Stock exchange analysis Pricing range 3 IPO activity by hotbeds Asia-Pacific EMEIA US Central and South America Emerging markets PE-backed IPO activity Follow-on activity 36 6 Withdrawals and postponements 37 7 Appendices *214 January March is based on priced IPOs as of 18 March and expected IPOs by end of March. Data up to 18 March 214, 5AM UK time Source: Dealogic, EY Page 2

3 Section Content January March* highlights 2 Global IPO activity trends Global analysis Regional analysis Industry analysis Stock exchange analysis Pricing range 3 IPO activity by hotbeds Asia-Pacific EMEIA US Central and South America Emerging markets 4 PE-backed IPO activity 5 Follow-on activity 6 Withdrawals and postponements 7 Appendices *214 January March is based on priced IPOs as of 18 March and expected IPOs by end of March. Data up to 18 March 214, 5AM UK time Source: Dealogic, EY Page 3

4 Q1 14* saw an 74.7% increase in proceeds and a 39.9% increase in the number of IPOs, compared to Q1 13 IPO activity summary Global IPO activity Q1 14* Q1 13 % change (Y-o-Y) Number of deals % Capital raised US$42.6b US$24.4b 74.7% Top 2 IPOs accounted for 55.6% of the global capital raised in Q1 14*, compared to 66.3% in Q1 13 There were seven deals with capital raised above US$1b in Q1 14* Top five IPO deals (by capital raised) in Q1 14* Issuer name Domicile Country Specific Industry Exchange Proceeds (US$m) % of global capital raised in Q1 14* HK Electric Investments Ltd Hong Kong Power Hong Kong (HKEx) 3, % Japan Display Inc Japan Electronics Tokyo (TSE) 3, % Santander Consumer USA Holdings Inc United States Credit institution New York (NYSE) 2, % Altice SA France Cable Euronext (Amsterdam) 2, % ISS A/S Denmark Professional services Copenhagen 1, % *Q1 14 is based on priced IPOs as of 26 March Source: Dealogic, EY Page 4

5 PE- and VC-backed IPOs increased in number and proceeds raised compared with Q1 13 PE- and VC-backed IPO activity summary Global PE- and VC-backed IPOs 1 Q1 14* Q1 13 % change (Y-o-Y) Number of deals 68 (29.8% of global total) 38 (23.3% of global total) 78.9% Capital raised US$16.9b (39.7%) US$8.4b (34.7%) 1.% Top three PE-backed IPOs (by capital raised) during Q1 14* Issuer name Domicile Country Specific Industry Exchange Proceeds (US$m) Santander Consumer USA Holdings Inc United States Credit Institution New York (NYSE) 2, % ISS A/S Denmark Professional Services Copenhagen 1, % Rice Energy Inc United States Oil & Gas New York (NYSE) 1,5. 2.5% % of global capital raised in Q1 14* Top three VC-backed IPOs (by capital raised) during Q1 14* Issuer name Domicile Country Specific Industry Exchange Proceeds (US$ m) % of global capital raised in Q1 14* King Digital Entertainment plc Ireland Software New York (NYSE) % Circassia Ltd United Kingdom Biotechnology London (LSE) % Castlight Health Inc United States Software New York (NYSE) % *Q1 14 is based on priced IPOs as of 26 March. Source: Dealogic, EY Throughout the slide deck, the term financial sponsor-backed IPOs and PE- and VC-backed IPOs are used interchangeably. Page 5

6 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14* Jan'12 Feb'12 Mar'12 April'12 May'12 June'12 July'12 Aug'12 Sep'12 Oct'12 Nov'12 Dec'12 Jan'13 Feb'13 Mar'13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13 Oct'13 Nov'13 Dec'13 Jan'14 Feb'14 Mar'14* Number of IPOs Number of IPOs Number of IPOs Global IPO activity trends IPO activity saw an increase in Q1 14*, both in terms of deal numbers and capital raised compared with Q1 13 Global IPO activity (25-Q1 14*) $ 3 $ 39 $ 48 $ 45 $ 53 $ 47 $ 1 $ 18 $ 24 $ Q1'14* For Q1 14*, the number of IPOs increased by 39.9% and the proceeds raised increased by 74.7%, compared with Q1 13. While Q1 13 saw six mega deals (IPOs raising more than US$1b), there were seven mega deals in Q1 14*. This quarter also saw significantly larger deals, with average deal size of US$186.7m, compared with US$149.5m in Q1 13. HK Electric Investments Ltd, which raised US$3.1b, was the largest deal in Q1 14*. Q1 14* was the best performing opening quarter since Q1 11 in terms of both proceeds raised and number of IPOs. January saw 11 listings which raised US$18.5b, this is the highest activity levels for the first month of the year in a decade. Capital raised during Q1 (US$b) Number of IPOs during the year Capital raised during Q2-Q4 (US$b) Number of IPOs during Q1 Quarterly IPO activity (212-Q1 14*) Monthly IPO activity (212-Q1 14*) $18 $44 $3 $37 $24 $46 $26 $75 $ Number of deals *Q1 14 is based on priced IPOs as of 26 March. Source: Dealogic, EY Number of deals Page 6

7 % Equity market returns year-to-date S&P 5 Index VIX Global IPO activity trends Investor confidence in many markets remained strong as the equity markets have recovered from substantial loss in January. Volatility declined rapidly from its recent high. Year-to-date equity market returns Major indices 2% 18 MSCI World Index Market Performance vs VIX Index 6 15% % % 1 % 8 3-5% 6 2-1% -15% 4 2 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan YTD 214YTD MSCI World Index VIX *Source: S&P Capital IQ. Year to date returns data as at 18 th March *Source: S&P Capital IQ. Data as at 18 th March Page 7

8 Median deal size US$m Median deal size US$m Global IPO activity trends on main markets Median values on main markets show increasing trend in Asia-Pacific and EMEIA between 211 and 214* Annual median deal size by region, US$m Quarterly median deal size by region, US$m YTD* Americas EMEIA Asia-Pacific Americas EMEIA Asia-Pacific All Median deal values have increased for EMEIA and Asia- Pacific between 211 and 214YTD* but trended lower for Americas. This is due to the higher number of smaller IPO listings on US exchanges from health care companies. Q1 14 saw 169 IPOs on main markets globally which raised US$39.7b altogether, whereas Q1 13 saw 111 IPOs which raised US$23.8b. Median deal values increased for EMEIA and Asia-Pacific in Q1 14* compared to Q1 13 but trended lower for the Americas. Median value for EMEIA is highest in Q1 14* among all quarters between 211 and 214*. *Q1 14 and 214 is based on priced IPOs as of 18 March and expected IPOs by end of March. Data up to 18 March 214, 5AM UK time Source: Dealogic, EY Please see the Appendix for the definition of main markets and junior markets Page 8

9 Median deal size US$m Median deal size US$m Global IPO activity trends on junior markets In Q1 14, the median values on junior markets rose sharply for the Asia- Pacific region due to reopening of the Shenzhen ChiNext in January Annual median deal size by region, US$m Quarterly median deal size by region, US$m YTD* Americas EMEIA Asia-Pacifc Americas EMEIA Asia-Pacific All Median deal values on junior markets rose sharply for Asia- Pacific in 214*. Americas and EMEIA also saw an increase in media deal values as compared to previous years. Q1 14 saw 7 IPO listings on junior markets globally which raised US$4.6b altogether, whereas Q1 13 had 52 IPOs which raised US$53. Median deal values for Asia- Pacific rose sharply in Q1 14* compared to all quarters of Q1 12 due to the reopening of China s Shenzhen ChiNext Board in January. *Q1 14 and 214 is based on priced IPOs as of 18 March and expected IPOs by end of March. Data up to 18 March 214, 5AM UK time Source: Dealogic, EY Please see the Appendix for the definition of main markets and junior markets Page 9

10 Proceeds (US$b) Number of IPOs Regional analysis Asia-Pacific issuers dominated global IPO activity in Q1 14*, in terms of both numbers and proceeds raised Regional share by capital raised (US$b) Regional share by number of IPOs ,7 58,2 37,9,1,1 1,4 1,4 6,3 15,4 2,9 15,4 9,1 18,4 6,8 18,4 5, * Q1'13 Q1'14* * Q1'13 Q1'14* Asia-Pacific EMEIA North America Central and South America Asia-Pacific EMEIA North America Central and South America In Q1 14*, Asia-Pacific exchanges continued to lead in terms of the number of IPOs and total proceeds raised, accounting for 47.3% of the global total deal numbers and 41.5% of global proceeds. EMEIA exchanges ranked second by capital raised (accounting for 34.8% of global proceeds). North America ranked second by global deal numbers (accounting for 26.4% of global total). Overall, IPO activity picked up in Q1 14* compared with Q1 13. All the regions witnessed an increase in both the number of deals and proceeds, except Central and South America where both declined. *Q1 14 is based on priced IPOs as of 18 March and expected IPOs by end of March. Data up to 18 March 214, 5AM UK time Source: Dealogic, EY Based on the listed company domicile. Page 1

11 Proceeds (US$b) Number of IPOs Regional analysis Asia-Pacific issuers dominated global IPO activity in Q1 14*, in terms of both numbers and proceeds raised Regional share by capital raised (US$b) Regional share by number of IPOs ,7 58,2 37,9,1,1 9, 9, 6,3 14,9 2,9 14,9 9,1 18,5 6,8 18,5 5, * Q1'13 Q1'14* * Q1'13 Q1'14* Asia-Pacific EMEIA North America Central and South America Asia-Pacific EMEIA North America Central and South America In Q1 14*, Asia-Pacific region continued to lead in terms of the number of IPOs and total proceeds raised, accounting for 49.1% of the global total deal numbers and 43.4% of global proceeds. EMEIA region ranked second by capital raised (accounting for 35.1% of global proceeds) and number of deals (accounting for 26.8% of global deals). Overall, IPO activity picked up in Q1 14* compared with Q1 13. All the regions witnessed an increase in both the number of deals and proceeds, except Central and South America where both declined. *Q1 14 is based on priced IPOs as of 26 March Based on the listed company domicile. Source: Dealogic, EY Page 11

12 Industry analysis The energy sector raised 17.7% of global proceeds in Q1 14*; the health care sector accounted for 2.2% of deals in Q1 14* Number of IPOs Q1'14* Q1'13 Q1'14* Q1'13 Energy 2, 7,5 Healthcare Technology 1, 5,9 Industrials Retail,9 4,6 Technology Real Estate 4,5 8, Materials Financials 2,5 3,5 Real estate Industrials 2,1 3,4 Energy Media and Entertainment,3 3,3 Consumer products and services Healthcare 3,3 3,1 Retail 7 14 Consumer Products and Services,8 3, Media and entertainment 4 11 Materials 1,9 1,5 Consumer staples Consumer Staples 1,4,8 Financials 1 17 Telecommunications,4 1,7 Telecommunications 4 6 *Q1 14 is based on priced IPOs as of 26 March. Source: Dealogic, EY Page 12

13 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14* Number of IPOs Number of IPOs EMEIA IPO activity trends IPO activity in the region rose by 11.6% in Q1 14*, in terms of capital raised compared with Q1 13 EMEIA IPO activity (25-Q1 14*) Quarterly EMEIA IPO activity (212-Q1 14*) $ 18 $ 13 $ $ $ $ 3 $ $ 1 $ 14 $ 18 $ 1 $ 8 $ 3 3 $ 7 $ 14 $ $ 14 $ Q1'14* $3 $2 $1 $1 $7 $5 $4 $19 $ Capital raised during Q1 (US$b) Capital raised during Q2-Q4 (US$b) Number of deals Number of IPOs during the year Number of IPOs during Q1 Key insights European equity indices are trending up, taking PE, corporate and investor confidence with them. Building on the strong IPO momentum from 213, market sentiment in MENA is also positive. Many PE and VC investors, keen to capitalize on improving market sentiment in EMEIA, are actively pushing out companies in 214 to take advantage of the wide-open IPO window. London Main Market led EMEIA IPO activity in Q1 14. Q2 14 is expected to be one of the strongest quarters for the UK since 27. In a historically and persistently low interest rate environment, investors are willing to take greater risk and are turning to equities and IPOs in the search for above-inflation investments. In 214, industry performance will be broadly positive across sectors. Outlook for Q2 14: IPO markets in EMEIA are back, and risk appetite is rising following improving performance across all industry sectors. Many PE funds are pushing to exit while the IPO window remains open, suggesting Q2 14 will see even stronger IPO performance. Dr Martin Steinbach, EMEIA IPO Leader, EY *Q1 14 is based on priced IPOs as of 26 March Source: Dealogic, EY 1 Based in IPO activity on EMEIA stock exchanges. Page 13

14 Q1'14* Number of IPOs EMEIA 1 IPO activity trends Performance of PE-backed IPOs exceeded those of non PE-backed IPOs Q1 14* EMEIA IPOs by sector Sectors Number of deals Proceeds US$m Consumer products and services Consumer staples Energy Financials 1.5 Health care Technology Industrials Materials Media and entertainment Real estate Retail Telecommunications TOTAL 57 14,8.3 EMEIA Financial sponsor-backed IPO activity (25 Q1 14*) EMEIA exchanges saw an increase of 11.6% and 7.5% in terms of proceeds raised and number of deals respectively (57 IPOs raising US$14.b in Q1 14* as compared with 53 IPOs raising US$ 7.b in Q1 13). The average deal size in the region was US$245.8m which is 31.6% more than the global average of US$186.7m. Financial sponsor-backed activity in Q1 14 (14 deals raising US$7.b) saw a huge jump in the region with an increase of 1.% and 94.% in the number of deals and proceeds raised, as compared with Q1 13 (seven deals raising US$ 3.4b). The UK main market saw 7 IPOs which raised US$4.2b, while the junior market, AIM had 16 IPOs which raised US$2.b together they account for 4.4% of EMEIA s deal number and 44.3% by capital raised. While the first day average returns for Q1 14 IPOs was 1.2% for financial sponsor-backed IPOs, they were x% for non-financial sponsor backed IPOs**. IPO pricing and performance: Q1 14* vs Q1 13 Measures 2 Q114 IPOs $17 $22 $22 $3 $2 $11 $4 $3 $17 $ EMEIA Main market IPOs - First day average return 6.7% EMEIA Main market IPO - % change of offer price vs. 24 th March 1.2% EMEIA Main market IPO - Median post-ipo market cap US$548m FTSE 1 214YTD returns -3.4% DAX 214YTD returns -3.8% CAC 214YTD returns -.5% Number of deals *Q1 14 is based on priced IPOs as of 26 March. Source: Dealogic, EY 1 Based in IPO activity on EMEIA stock exchanges. 2 We calculated the pricing and first day average returns and 214YTD returns for non financial sponsor backed IPOs that were listed on Main Markets only. 2 Pricing and returns are based on 23 IPOs on EMEIA main markets that have been priced by 24 March. Data as of 24 March Page 14

15 Stock exchange analysis: summary Asia-Pacific exchanges dominated the global IPO market, both by deals and capital raised Americas exchanges 29.7% of number of deals and 26.4% of capital raised Asia-Pacific exchanges 46.% of number of deals and 4.9% of capital raised EMEIA exchanges 24.3% of number of deals and 32.7% of capital raised Key regions/exchanges during the year US: accounted for 26.4% of global proceeds and 28.9% by global deal number Major US exchanges (NYSE and NASDAQ) raised US$11.6b in 68 deals altogether. In 214* so far, 72.5% of deals and 86.% of proceeds raised in the US were backed by PE and/or VC firms. With US$8.6b raised in 25 deals, the New York Stock Exchange (NYSE) led globally by capital raised. By proceeds, energy (US$2.5b) was the most active sector while health care (35 deals) was the most active sector by number of deals. Canada: only 1 IPO on the Toronto Venture Exchange which raised US$1.3m Central and South America: only 1 listing on Jamaica exchange, raising US$2.1m Greater China 1 : majority of listings on Mainland Chinese Exchanges Shenzhen (Main Board and Chinext combined) accounted for 38 deals raising US$3.4b while Shanghai raised US$2.b through six deals. With US$ 5.b Hong Kong Stock Exchange (HKEx) raised through 15 deals, HKEx grossed second highest proceeds globally this quarter. Japan: remained a key exchange this quarter Witnessed 15 deals that raised US$4.9b Accounted for 27.2% of proceeds raised in Asia-Pacific in Q1 14* as compared with 37.1% in Q1 13. Globally, Tokyo (TSE) ranked fourth highest by proceeds this quarter (US$ 4.6b) Australia and New Zealand: stronger activity q-o-q in terms of capital raised The region witnessed seven deals that raised US$1.2b via 7 deals in Q1 14 compared with US$176m via 1 deals in Q1 13 Europe: led by the UK (14.7% of global total), raised 3.2% of global proceeds: Saw 42 IPOs raising US$13.4b in Q1 14* (17.6% of global number of deals); an increase of 5.% in deal count and an increase of 162.5% in capital raised compared to Q1 13. London Stock Exchange had the highest proceeds raised across European exchanges with US$4.6b raised in eight IPOs. London Alternative Investment Market (AIM) had the highest number of IPOs across European exchanges; ranked fourth globally by number of deals (16) raising US$2.b. Middle East and Africa: five deals raised US$1.b Middle East exchanges raised US$1.b through two IPOs in Q1 14* compared with US$1.6b in three IPOs in Q1 13. African exchanges raised US$91.6m through three IPOs this year compared with US$6.7m through three IPOs in Q1 13. Data based on domicile of the exchange, regardless of the listed company domicile. 1 Greater China includes Mainland China, Hong Kong, Macau and Taiwan *Q1 14 and 214 is based on priced IPOs as of 18 March and expected IPOs by end of March. Data up to 18 March 214, 5AM UK time Source: Dealogic, EY Page 15

16 Stock exchange analysis New York Stock Exchange led in terms of capital raised while NASDAQ led in terms of number of deals in Q1 14* Q1 14* Q1 13 New York (NYSE) 8,6 New York (NYSE) 6,5 Hong Kong (HKEx) 5, Mexican (BMV) 2,5 Tokyo (TSE) 4,6 London (LSE) 2,3 London (LSE) 4,6 NASDAQ 2,1 Shenzhen 3,4 Tokyo (TSE) 1,8 Euronext 3,1 Deutsche Borse 1,6 NASDAQ 3,1 Singapore (SGX) 1,4 NASDAQ OMX 2,2 Iraq Stock Exchange 1,3 All other exchanges 9,8 All other exchanges 4,9 NASDAQ Shenzhen New York (NYSE) London (AIM) Hong Kong (HKEx) London (LSE) Indonesia (IDX) Bombay SME Shanghai (SSE) Australia (ASX) Tokyo (TSE) Euronext All other exchanges No. of IPOs New York (NYSE) NASDAQ Bombay SME Australia (ASX) Hong Kong (HKEx) Warsaw NewConnect KOSDAQ Indonesia (IDX) Tokyo (TSE) Tokyo MOTHERS London (AIM) All other exchanges Data based on domicile of the exchange, regardless of the listed company domicile. Euronext includes Euronext (Amsterdam), Euronext (Paris) and Lisbon, NASDAQ OMX includes Copenhagen and Stockholm, Shenzhen includes Shenzhen (SZSE) and Shenzhen (Chinext). *Data up to 18 March 214. Source: Dealogic, EY Page 16

17 Q1'8 Q2'8 Q3'8 Q4'8 Q1'9 Q2'9 Q3'9 Q4'9 Q1'1 Q2'1 Q3'1 Q4'1 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14* Number of deals Pricing range 91% of global IPOs were priced within or above the initial filing range in Q1 14* compared with 94% in Q % of global IPOs in 214* so far were priced within their initial filing range, 5% were priced above their initial filing range, and 9% of IPOs were priced below their initial filing range. Total number of IPOs % 82% 12% 11% 1% 1% 14% 16% 9% 7% 2% 3% 2% 11% 1% 1% 3% 5% 2% 7% 7% 6% 6% 5% 3% 3% 6% 5% 4% 9% 7% 12% 6% 8% 5% 11% 4% 7% 6% 3% 9% 12% 9% 1% 9% 5% 11% 8% 5% 72% 62% 52% 42% 32% 87% 88% 86% 84% 91% 73% 95% 86% 85% 88% 9% 9% 88% 89% 92% 84% 82% 87% 85% 9% 85% 83% 8% 83% 86% 22% 12% 2% In range Above Below 1 Chart shows the number of open-price IPOs with deal value above US$5m that is priced above, below or within their initial filing range. For 3% of IPOs, this range is not applicable. *Q1 14 and 214 is based on priced IPOs as of 18 March and expected IPOs by end of March. Data up to 18 March 214, 5AM UK time Source: Dealogic, EY Page 17

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