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Sehr geehrte Damen und Herren,
für Rückfragen zu der beigefügten Publikation „PwC IPO Centre –Q3 2016 Equity Capital Markets Briefing“ stehen Ihnen folgende Ansprechpartner gerne zur Verfügung:
Nadja Picardnadja.picard@de.pwc.comTel. +49 211 981-2978
Christoph Grusschristoph.gruss@de.pwc.comTel. +49 69 9585-3415
Dirk Menkerdirk.x.menker@de.pwc.comTel. +49 89 5790-5806
Dr. Rüdiger Loitzruediger.loitz@de.pwc.comTel. +49 211 981-2839
PwC IPO CentreQ3 2016 Equity Capital Markets Briefing
PwC provides independent guidance to companies in the process of going public and to already listed companies in assessing their position in the equity capital markets.
Martin Coenenmartin.coenen@nl.pwc.com
Clifford Tompsettclifford.tompsett@uk.pwc.com
Nadja Picardnadja.picard@de.pwc.com
Jan-Willem de Grootjan-willem.de.groot@nl.pwc.com
PwC
Q3 2016
2
Quarterly ECM Briefing
Global money raised via IPOs and FOs (10-year overview)
IPO
mo
ne
y r
ais
ed
& #
of
de
als
FO
mo
ne
y r
ais
ed
& #
of
de
als
Top countries 2016YTD
Source: Dealogic as of 30 September 2016
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. Top countries have been selected based on money raised in 2016YTD. If IPOs or FOs take place in two or more countries, total money raised is attributed to all countries
IPO
mo
ne
y r
ais
ed
& #
of
de
als
$371,2bn
$105,8bn $120,3bn
$222,8bn
$178,3bn
$140,6bn
$195,2bn
$274,3bn
$206,4bn
$85,5bn
1.885
570 497
1.2491.036
719863
1.165 1.177
627
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
$570,1bn $557,4bn
$841,6bn
$415,1bn$470,7bn
$509,3bn$586,4bn $612,8bn
$685,3bn
$421,5bn
3.719
1.968
3.550 3.5462.894
2.5063.039 3.171 3.314
2.282
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
US, 32%
China, 26%
Canada, 6%
UK, 5%
Hong Kong, 4%
Other, 27%
US, 19%
Hong Kong, 18%
China, 15%
Denmark, 7%
Japan, 6%
Other, 35%
Global money raised via IPOs and FOsWith three quarter of the year done, IPO activity is clearly lacking previous years
PwC
Q3 2016
• As the summer calm settled, volatility came down and central banks kept their policies unchanged. This led to healthy IPO conditions in the third quarter.
• Global money raised rose by 47% compared to Q3 2015, as proceeds totalled $35.8bn via 230 IPOs.
• FO activity rose less starkly, as 848 deals raised a total of $150.4bn. This represents a 9% rise compared to Q3 2015.
• Stock markets were driven higher by the continuance of monetary stimulus, with the S&P 500 hitting a record high.
3
Quarterly ECM Briefing Source: Dealogic, Bloomberg as of 30 September 2016
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’
Global IPO and FO activity
2014 2015 2014YTD 2015YTD 2016YTD Q3 2014 Q3 2015 Q3 2016
IPO activity
Number of IPOs 1,165 1,177 815 849 627 248 178 230
% sponsor-backed 18.1% 13.7% 20.4% 14.7% 11.2% 15.3% 15.2% 9.6%
Money raised $274.3bn $206.4bn $197.5bn $134.8bn $85.5bn $69.6bn $24.4bn $35.8bn
% sponsor-backed 30.5% 29.2% 35.5% 30.5% 25.2% 19.8% 28.8% 19.2%
Advanced metrics
Free float % 33.2% 33.0% 34.3% 33.8% 31.9% 32.3% 39.0% 31.8%
Overallotment exercised (%)1 40.0% 32.5% 41.7% 34.1% 24.8% 34.5% 37.0% 17.2%
% secondary shares 18.4% 16.4% 19.0% 15.8% 16.6% 14.9% 17.0% 12.4%
FO activity
Number of FOs 3,171 3,314 2,434 2,539 2,282 757 687 848
Money raised $612.8bn $685.3bn $482.6bn $547.6bn $421.5bn $149.5bn $117.2bn $150.4bn
1
2
3
43
4 Global indicesIPO pricing dynamics Post-IPO performance (median)
2
1
12% 8% 12% 7% 7%
13% 13%14%
11% 15%
51% 53%51%
54% 49%
18% 20% 16% 20% 26%
7% 6% 7% 8% 3%
2014 2015 2014YTD 2015YTD 2016YTD
Below range Bottom of range In range Top of range Above range
75
100
125
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
FTSE 100 Hang Seng S&P 500
13,0%14,0% 15,8%
14,3%
17,8%15,1%
18,3%15,6%
10,0%
24,0%
1-Day 1-Week 1-Month 3-Month Current
Overview of global IPO and FO activityIPO and FO proceeds and number of deals rose compared to the same quarter last year
1) Overallotment exercised (%) presents the percentage of IPOs in which the overallotment option has been exercised (either partly or in full)
2015 2016YTD
PwC
Q3 2016
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. Country indicates the company’s Country of domicile. Sector classification is based on the Industry Classification Benchmark (ICB). 1) ArcelorMittal’s primary listing is on Euronext Amsterdam; it is also listed on Euronext Paris, NYSE, Luxembourg SE and BME.
4
Quarterly ECM Briefing
Top 10 largest IPOs 2016YTD
Top 10 largest FOs 2016YTD
Source: Dealogic as of 30 September 2016
Pricing
dateIssuer name
Issuer
countrySector Exchange Filing range
Offer
pricePricing
Money
raised
Free
float
Secondary
shares (%)
Performance1-day 1-month Current
21-Sep-16 Postal Savings Bank China Financials HKEx 4.68 - 5.18 4.76 Bottom of range $7.4bn 15.0% 0.0% 0.2% N/A 0.2%
9-Jun-16 Dong Energy Utilities NASDAQ OMX C’gen 200.00 - 255.00 235.00 In range $3.0bn 20.1% 100.0% 9.8% 7.7% 17.0%
23-Sep-16 Nets Financials NASDAQ OMX C’gen 130.00 - 160.00 150.00 In range $2.4bn 52.5% 65.1% -3.3% N/A -1.5%
21-Mar-16 China Zheshang Bank Financials HKEx 3.92 - 4.12 3.96 Bottom of range $1.9bn 21.7% 9.1% 0.0% -1.0% 0.5%
11-Jul-16 LINE Corp Technology NYSE; Tokyo SE 2,700 - 3,200 3300.00 Above range $1.3bn 19.2% 0.0% 31.7% 28.3% 47.3%
9-Jun-16 a.s.r. Financials Euronext Amsterdam 18.00 - 22.00 19.50 In range $1.2bn 36.3% 100.0% 2.6% -10.4% -7.1%
19-Apr-16 MGM Growth Properties Financials NYSE 18.00 - 21.00 21.00 Top of range $1.2bn 27.6% 0.0% 4.8% 8.5% 24.1%
25-May-16 US Foods Consumer Goods NYSE 21.00 - 24.00 23.00 In range $1.2bn 23.9% 0.0% 8.3% 1.5% 2.7%
24-May-16 BOC Aviation Industrials HKEx 42.00 - 42.00 42.00 In range $1.1bn 30.0% 50.0% 0.0% -6.3% -5.0%
28-Jun-16 Bank of Jiangsu Financials Shanghai SE N/A 6.27 N/A $1.1bn 10.0% 0.0% 44.0% 91.6% 59.5%
Pricing
dateIssuer name
Issuer
countrySector Exchange Filing range
Offer
priceDeal type
Money
raised
Secondary
shares (%)
Performance1-day 1-month Current
11-Feb-16 Saipem Oil & Gas Borsa Italiana 0.36 - 0.36 0.36 FO - Rights Offer $3.9bn 0.0% -16.7% 6.3% 4.1%
15-Apr-16 China Yangtze Power Utilities Shanghai SE 12.08 - 12.08 12.08 FO - Cash Placing $3.7bn 0.0% 2.2% 2.6% 10.1%
17-Mar-16 TransCanada Oil & Gas TMX 49.42 - 49.42 45.75 FO - Bought Deal $3.3bn 0.0% 7.3% 9.8% 36.2%
4-Apr-16 ArcelorMittal Basic Materials Euronext Amsterdam1 2.20 - 2.20 2.20 FO - Rights Offer $3.2bn 0.0% 80.9% 113.6% 147.6%
17-Jun-16 Banco Popular Espanol Financials Bolsa de Madrid 1.25 - 1.25 1.25 FO - Rights Offer $2.8bn 0.0% 11.3% 4.0% -11.9%
28-Jan-16 Molson Coors Brewing Consumer Goods NYSE 87.76 - 87.76 86.50 FO – Accelerated Bookbuild $2.6bn 0.0% 4.6% -1.5% 26.9%
7-Sep-16 Hainan Airlines Consumer Services Shanghai SE 3.64 - 3.64 3.58 FO - Cash Placing $2.5bn 0.0% -6.7% N/A -10.6%
7-Jan-16 Bohai Leasing Industrials Shenzhen SE N/A 6.07 FO - Cash Placing $2.5bn 0.0% 24.1% 12.4% 18.3%
16-Mar-16 Baxalta Health Care NYSE 39.09 - 39.09 37.75 FO - Accelerated Bookbuild $2.4bn 100.0% 1.3% 7.3% 21.9%
19-May-16 Tesla Motors Consumer Goods NASDAQ 211.17 - 211.17 215.00 FO - Accelerated Bookbuild $2.3bn 29.9% 2.5% 0.2% -5.1%
Leading transactions 2016YTDThe IPO of Postal Savings Bank of China is by far the largest this year, raising $7.4bn on the HKEx in September
PwC
Q3 2016
5
Quarterly ECM Briefing
Americas EMEA Asia-Pacific
IPO
mo
ne
y r
ais
ed
& #
of
de
als
FO
mo
ne
y r
ais
ed
& #
of
de
als
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more regions, the total money raised is attributed to all regions
Source: Dealogic as of 30 September 2016
$71,5bn
$96,8bn$109,5bn
$50,6bn
$17,2bn
222321 346
244
96
2012 2013 2014 2015 2016YTD
$52,8bn$58,3bn
$83,1bn $84,1bn
$46,6bn
397 363
542
664
412
2012 2013 2014 2015 2016YTD
$18,0bn
$40,5bn
$81,7bn$71,7bn
$23,0bn
101181
277 269
120
2012 2013 2014 2015 2016YTD
$235,0bn$250,2bn
$230,3bn$243,0bn
$169,3bn
1.0311.162 1.143
1.053
767
2012 2013 2014 2015 2016YTD
$122,4bn
$179,3bn$203,8bn
$190,4bn
$88,5bn
519632
731 798
509
2012 2013 2014 2015 2016YTD
$152,6bn $160,2bn$182,4bn
$259,8bn
$167,0bn
978
1.263 1.325 1.480
1.012
2012 2013 2014 2015 2016YTD
IPO and FO activity per regionAfter a strong third quarter in terms of both IPO and FO numbers and proceeds, the Asia-Pacific region remains at the epicentre of activity this year
PwC
Q3 2016
6
Quarterly ECM Briefing
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place on two or more exchanges, the total money raised is attributed to all exchanges. LSE Group includes Borsa Italiana.
Money raised and number of IPOs per Exchange 2014 – 2016YTD Top Exchanges 2016YTD
Top Exchanges 2016YTDMoney raised and number of FOs per Exchange 2014 – 2016YTD
HKEx LSE GroupNYSENASDAQ
OMXShanghai SE
NYSE LSE GroupShenzhen SE Shanghai SENASDAQ
OMX
Source: Dealogic as of 30 September 2016
$29bn$24bn
$15bn
$32bn$25bn
$15bn
$76bn
$21bn
$9bn $6bn
$18bn$9bn
$32bn$26bn
$6bn
108 116
65
206 192
108 121
59 25 43
89 60
132 97
43
2014 2015 2016YTD
2014 2015 2016YTD
2014 2015 2016YTD
2014 2015 2016YTD
2014 2015 2016YTD
$130bn$147bn
$96bn
$29bn $38bn
$63bn $65bn$83bn
$52bn
$29bn$48bn$48bn
$64bn $66bn
$31bn
413 371
252
121 186
232
438 516
372
95 114 114
341 345
219
2014 2015 2016YTD
2014 2015 2016YTD
2014 2015 2016YTD
2014 2015 2016YTD
2014 2015 2016YTD
Top exchanges globally based on money raised in 2016YTDHKEx and NASDAQ OMX are the dominant exchanges in terms of IPO activity this year-to-date, particularly as a result of some jumbo transactions
HKEx, 17%
NASDAQ OMX, 17%
NYSE, 10%
Shanghai SE, 10%
LSE Group, 6%
Other, 40%
NYSE, 22%
Shenzhen SE, 15%
NASDAQ OMX, 12%
Shanghai SE, 11%
LSE Group, 7%
Other, 34%
PwC
Q3 2016
7
Quarterly ECM Briefing
Money raised and number of IPOs and FOs per sector 2014 – 2016YTD
IPO
mo
ne
y r
ais
ed
& #
of
de
als
FO
mo
ne
y r
ais
ed
& #
of
de
als
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more regions, the total money raised is attributed to all regionsSector classification is based on the Industry Classification Benchmark (ICB). Financials include Closed-End Funds and Real Estate.
IndustrialsBasic
MaterialsHealth
CareTechnology
Consumer Goods
Financials Oil & GasConsumer
ServicesTelecom-
municationUtilities
Source: Dealogic, Bloomberg as of 30 September 2016
8,0 6,3 2,7
18,7 18,0 9,7
62,0
15,6 9,0
89,7
77,1
36,9
19,4 16,4 5,4
32,1 37,7
12,0 17,2
6,6 0,8
11,9 14,3 4,8 4,1 7,1
0,0 11,2 7,4 4,1
55 7133
132169
75
167140
79
243 266
124179 161
82
194218
146
5024 8
109 10069
13 11 1 23 17 10
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
30,8 47,7 35,9 41,2 45,5 38,7
59,2 75,5
39,0
215,2 244,4
94,9
32,8
71,8
35,1
95,7 83,6 71,3 67,7 47,3 58,0
24,7 25,1 23,1 21,4 21,6 6,2
24,0 22,9 19,3
310 256 273 257 290 213306 375
198
800 827
448353
498329
510 493370
285 217 198 229 244 18248 39 30 73 75 41
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
Global IPO and FO activity per sectorFinancials (including real estate) maintained their lead in terms of both IPO and FO proceeds, whilst Industrials rank second
PwC
Q3 2016
Note: included deals > $5m; Country indicates the company’s Country of domicile; Financial sponsor-backed has been abbreviated to FS-backed for practical sake. IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’. If IPOs or FOs take place in two or more regions, the total money raised is attributed to all regions.
8
Quarterly ECM Briefing
Top 10 largest FS-backed IPOs 2016YTD globally
FS-backed activity Americas FS-backed activity EMEA FS-backed activity Asia-Pacific
IPO
mo
ne
y r
ais
ed
& #
of
de
als
2015 2016 YTD
70 (11%) sponsor-backed IPOs vs 557 (89%) non-sponsor-backed IPOs
Global FS-backed IPOs (by money raised)
Source: Dealogic as of 30 September 2016
161 (14%) sponsor-backed IPOs vs 1,016 (86%) non-sponsor-backed IPOs
$16,0bn
$35,1bn $35,8bn
$15,8bn
$6,1bn
68
98 96
53
23
2012 2013 2014 2015 2016YTD
$3,2bn
$18,1bn
$30,7bn $30,5bn
$12,8bn
7
35
67 66
33
2012 2013 2014 2015 2016YTD
$4,8bn$6,4bn
$17,0bn$14,1bn
$2,6bn
32 41
48 42
14
2012 2013 2014 2015 2016YTD
Sponsor-backed;
29%
Not Sponsor-backed;
71%
Sponsor-backed;
25%
Not Sponsor-backed;
75%
Pricing date
Issuer name Exchange PricingMoney raised
Performance
1-day 1-month Current
9-Jun-16 Dong Energy NASDAQ OMX C’gen In range $3.0bn 9.8% 7.7% 17.0%
23-Sep-16 Nets NASDAQ OMX C’gen In range $2.4bn -3.3% N/A -1.5%
25-May-16 US Foods NYSE In range $1.2bn 8.3% 1.5% 2.7%
20-Jul-16 Patheon NYSE In range $0.7bn 19.0% 32.7% 41.1%
28-Apr-16 Parques Reunidos Bolsa de Madrid Bottom of range $0.7bn -4.8% -4.7% -20.5%
14-Apr-16 VAT Group SIX Swiss Exchange Top of range $0.6bn 14.6% 18.9% 83.0%
25-Apr-16 Telepizza Group Bolsa de Madrid In range $0.6bn -19.4% -16.1% -47.9%
26-Apr-16 Red Rock Resorts NASDAQ In range $0.6bn -4.1% 1.7% 21.0%
4-Mar-16 Metro Bank LSE Bottom of range $0.6bn 7.5% -5.8% 38.1%
20-Jun-16 Komeda Tokyo SE Top of range $0.6bn -4.1% -4.8% -17.7%
Financial sponsor-backed IPO activity globallyWith $12.8bn raised via 33 IPOs, FS activity in the EMEA region is responsible for 59% of proceeds and 47% of the number of global FS-backed IPOs
PwC
Q3 2016
9
Quarterly ECM Briefing
Money raised via IPOs versus volatility
Number of IPOs versus volatility
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges.
Source: Dealogic, Bloomberg as of 30 September 2016
22,9 22,0
37,3 37,5
25,129,5
23,919,9 18,4 19,9 19,0
16,9 18,616,0 16,8
21,6 22,7 23,126,7
23,3
28,425,8
20,7
$0bn
$25bn
$50bn
$75bn
$100bn
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011 2012 2013 2014 2015 2016
Global money raised via IPOs VIX (average per quarter)
22,9 22,0
37,3 37,5
25,1
29,5
23,919,9 18,4 19,9 19,0
16,918,6
16,0 16,8
21,6 22,7 23,126,7
23,3
28,425,8
20,7
-
100
200
300
400
500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011 2012 2013 2014 2015 2016
Number of IPOs globally VIX (average per quarter)
Volatility versus IPO activityAverage volatility came down again in the third quarter as a result of thin summer trading and the absence of major news headlines
PwC
Q3 2016
Americas
10
Quarterly ECM Briefing
PwC
Q3 2016
11
Quarterly ECM Briefing
Money raised via IPOs and FOs in the Americas (10-year overview)
IPO
mo
ne
y r
ais
ed
& #
of
de
als
FO
mo
ne
y r
ais
ed
& #
of
de
als
Top countries 2016YTD
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in both North and Latin America, total money raised is attributed to both regions. Top countries have been selected based on money raised in 2016YTD. If IPOs or FOs take place in two or more countries, total money raised is attributed to all countries.
Source: Dealogic as of 30 September 2016
$106,2bn
$32,8bn $33,3bn$47,1bn $54,0bn $63,9bn
$83,1bn$105,8bn
$43,7bn$16,9bn
$38,7bn
$7,1bn $13,2bn$8,2bn $6,5bn
$11,7bn
$14,1bn
$3,7bn
$6,9bn
$0,6bn
524
87 112
276 250 222321 346
244
96
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
North America Latin America Number of IPO's
$163,1bn$238,3bn
$291,4bn
$139,5bn$184,6bn
$223,2bn $230,9bn $216,0bn $240,5bn$164,7bn
$10,2bn
$20,7bn
$16,7bn
$10,7bn
$24,1bn$14,0bn $23,5bn
$18,3bn$7,9bn
$4,6bn
1.256
773
1.383 1.4661.236
1.031 1.162 1.143 1.053767
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
North America Latin America Number of FO's
United States, 82%
Canada, 15%
Other, 3%
United States, 94%
Canada, 2%
Argentina, 2%Other, 2%
Money raised via IPOs and FOs in the AmericasIPO activity in the Americas is low, partly due to political uncertainty surrounding the upcoming US presidential election
PwC
Q3 2016
IPO and FO activity in the Americas
2014 2015 2014YTD 2015YTD 2016YTD Q3 2014 Q3 2015 Q3 2016
IPO activity
Number of IPOs 346 244 253 192 96 76 54 43
% sponsor-backed 27.7% 21.7% 27.3% 24.0% 24.0% 23.7% 20.4% 25.6%
Money raised $109.5bn $50.6bn $86.3bn $38.7bn $17.2bn $44.6bn $11.9bn $8.2bn
% sponsor-backed 32.7% 31.2% 31.0% 31.0% 35.8% 9.1% 22.5% 31.3%
Advanced metrics
Free float % 32.7% 37.1% 33.2% 38.8% 33.1% 34.3% 42.5% 33.1%
Overallotment exercised (%)1 77.4% 75.0% 79.2% 76.8% 65.5% 76.5% 77.8% 62.5%
% secondary shares 9.2% 6.3% 8.5% 6.2% 8.3% 9.2% 6.7% 10.5%
FO activity
Number of FOs 1,143 1,053 933 884 767 236 189 272
Money raised $230.3bn $243.0bn $185.6bn $208.3bn $169.3bn $52.1bn $36.4bn $56.1bn
1
2
3
12
Quarterly ECM Briefing Source: Dealogic, Bloomberg as of 30 September 2016
34%26%
34%22% 24%
13%
9%
13%
8% 11%
28%40%
26%
40%39%
10% 8% 11%9%
15%
16% 18% 16% 21%11%
2014 2015 2014YTD 2015YTD 2016YTD
Below range Bottom of range In range Top of range Above range
2,8%2,1% 3,1%
4,3% 3,9%3,3%
0,0%
9,4%
-3,9%
17,1%
1-Day 1-Week 1-Month 3-Month Current 75
100
125
150
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
Dow Jones NASDAQ 100 S&P 500
Overview of IPO and FO activity in the AmericasThe Federal Reserve held back on raising rates in September, which should provide further support for equity indices
• In Q3 2016, 43 IPOs raised a total of $8.2bn. The region is underperforming compared to Q3 2015 and on a YTD basis.
• In contrast, FO activity rose in the third quarter, with 272 deals raising $56.1bn, which represents an increase of 54% compared to Q3 2015.
• Despite geopolitical turmoil, IPOs remain an attractive investment with a median current return of 17% for 2016 transactions.
1
2
3
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’
Global indicesIPO pricing dynamics Post-IPO performance (median)
1) Overallotment exercised (%) presents the percentage of IPOs in which the overallotment option has been exercised (either partly or in full)
2015 2016YTD
PwC
Q3 2016
13
Quarterly ECM Briefing
Top 10 largest IPOs 2016YTD in the Americas
Top 10 largest FOs 2016YTD in the Americas
Source: Dealogic as of 30 September 2016
Pricing
dateIssuer name
Issuer
countrySector Exchange Filing range
Offer
pricePricing
Money
raised
Free
float
Secondary
shares (%)
Performance1-day 1-month Current
11-Jul-16 LINE Corp Technology NYSE; Tokyo SE 2,700 - 3,200 3300.00 Above range $1.3bn 19.2% 0.0% 31.7% 28.3% 47.3%
19-Apr-16 MGM Growth Properties Financials NYSE 18.00 - 21.00 21.00 Top of range $1.2bn 27.6% 0.0% 4.8% 8.5% 24.1%
25-May-16 US Foods Consumer Goods NYSE 21.00 - 24.00 23.00 In range $1.2bn 23.9% 0.0% 8.3% 1.5% 2.7%
22-Sep-16 Valvoline Consumer Goods NYSE 20.00 - 23.00 22.00 In range $0.8bn 17.3% 0.0% 5.0% N/A 6.8%
20-Jul-16 Patheon Health Care NYSE 19.00 - 22.00 21.00 In range $0.7bn 24.3% 16.0% 19.0% 32.7% 41.1%
19-May-16 CF Corp Basic Materials NASDAQ 10.00 - 10.00 10.00 In range $0.7bn 92.0% 0.0% -0.1% -0.8% 2.0%
26-Apr-16 Red Rock Resorts Consumer Services NASDAQ 18.00 - 21.00 19.50 In range $0.6bn 25.6% 0.7% -4.1% 1.7% 21.0%
3-Aug-16 First Hawaiian Financials NASDAQ 21.00 - 23.00 23.00 Top of range $0.6bn 17.4% 100.0% 5.4% 18.2% 16.8%
23-Feb-16 Silver Run Acquisition Financials NASDAQ 10.00 - 10.00 10.00 In range $0.5bn 88.9% 0.0% 2.1% 3.3% 80.1%
14-Jul-16 AdvancePierre Foods Consumer Goods NYSE 20.00 - 23.00 21.00 In range $0.4bn 27.2% 40.4% 14.3% 18.9% 31.2%
Pricing
dateIssuer name
Issuer
CountrySector Exchange Filing range
Offer
priceDeal type
Money
raised
Secondary
shares (%)
Performance1-day 1-month Current
17-Mar-16 TransCanada Oil & Gas TMX 49.42 - 49.42 45.75 FO - Bought Deal $3.3bn 0.0% 7.3% 9.8% 36.2%
4-Apr-16 ArcelorMittal Basic Materials Euronext Amsterdam1 2.20 - 2.20 2.20 FO - Rights Offer $3.2bn 0.0% 80.9% 113.6% 147.6%
28-Jan-16 Molson Coors Brewing Consumer Goods NYSE 87.76 - 87.76 86.50 FO - Accelerated Bookbuild $2.6bn 0.0% 4.6% -1.5% 26.9%
16-Mar-16 Baxalta Health Care NYSE 39.09 - 39.09 37.75 FO - Accelerated Bookbuild $2.4bn 100.0% 1.3% 7.3% 21.9%
19-May-16 Tesla Motors Consumer Goods NASDAQ 211.17 - 211.17 215.00 FO - Accelerated Bookbuild $2.3bn 29.9% 2.5% 0.2% -5.1%
7-Jun-16 Suncor Energy Oil & Gas TMX 36.50 - 36.50 35.00 FO - Bought Deal $2.2bn 0.0% 1.3% 3.0% 4.1%
12-Sep-16 Anadarko Petroleum Oil & Gas NYSE 57.79 - 57.79 54.50 FO - Bought Deal $2.2bn 0.0% 5.7% N/A 16.3%
24-Feb-16 Enbridge Oil & Gas TMX 43.16 - 43.16 40.70 FO - Bought Deal $1.7bn 0.0% 12.0% 21.8% 41.7%
5-Jan-16 Pioneer Natural Resources Oil & Gas NYSE 125.17 - 125.17 117.00 FO - Bought Deal $1.6bn 0.0% -0.7% 1.5% 58.7%
16-Aug-16 Southern Utilities NYSE 50.96 - 50.96 49.56 FO - Bought Deal $1.6bn 0.0% 3.9% 4.9% 3.5%
Leading transactions 2016YTD in the AmericasOnly three billion-dollar+ IPOs were executed in the Americas this year-to-date, whereas the dual IPO of LINE Corp demonstrates continued international allure
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. Country indicates the company’s Country of domicile. Sector classification is based on the Industry Classification Benchmark (ICB). 1) ArcelorMittal’s primary listing is on Euronext Amsterdam; it is also listed on Euronext Paris, NYSE, Luxembourg SE and BME.
PwC
Q3 2016
14
Quarterly ECM Briefing
Money raised and number of IPOs and FOs per sector 2014 – 2016YTD in the Americas
IPO
mo
ne
y r
ais
ed
& #
of
de
als
FO
mo
ne
y r
ais
ed
& #
of
de
als
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. Sector classification is based on the Industry Classification Benchmark (ICB). Financials include Closed-End Funds and Real Estate.
IndustrialsBasic
MaterialsHealth
CareTechnology
Consumer Goods
Financials Oil & GasConsumer
ServicesTelecom-
municationUtilities
Source: Dealogic, Bloomberg as of 30 September 2016
3,4 1,1 0,7 2,6 4,4 2,7
34,8
2,6 1,4
33,2
17,8
5,8 9,9
6,5 2,9 2,4
7,2
0,7
14,0
5,0 0,4
6,3 3,4 2,6 0,5 - -
2,4 2,5 -
9 3 1 13 13 938
16 7
96 95
27
107
6632 17 19 5
269 2
32 19 13 1 7 4
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
11,0 9,9 13,6 9,7 11,8 10,7
26,7 32,6
11,5
62,6 61,5
33,5
21,9
49,0
22,2 23,3 18,0
10,2
50,6
32,7
46,6
13,5 11,8 9,4 4,0
8,7 1,6
7,0 6,9 10,0
10861
10042 39 25
93 10947
287227
147203
298
195120
83 55
185132 134
76 67 41 8 10 6 21 27 17
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
IPO and FO activity per sector in the AmericasIn the Americas Financials are not dominant in terms of FO proceeds, as Oil & Gas companies have raised $46.6bn this year
PwC
Q3 2016
15
Quarterly ECM Briefing
IPO activity of top countries in the Americas 2012 – 2016YTD
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more countries, the total money raised and number of IPOs is attributed to all countries. Top countries have been selected based on the money raised in 2016YTD.
Source: Dealogic as of 30 September 2016
$61,0bn
$77,8bn
$100,5bn
$38,8bn
$16,5bn
175
254302
187
88
2012 2013 2014 2015 2016YTD
$3,0bn $5,5bn $5,4bn $4,9bn$0,4bn
29
44
30 33
2
2012 2013 2014 2015 2016YTD
- - $0,0bn - $0,3bn
1 2
2012 2013 2014 2015 2016YTD
$6,8bn $5,6bn $3,5bn $6,7bn$0,3bn
612 12
23
4
2012 2013 2014 2015 2016YTD
Top countries in terms of IPO activity in the AmericasResponsible for 19% of proceeds and 14% of the number of global IPOs, the US is the most active country in the world, despite a historically weak year
PwC
Q3 2016
EMEA
16
Quarterly ECM Briefing
PwC
Q3 2016
17
Quarterly ECM Briefing
Money raised via IPOs and FOs in EMEA (10-year overview) Top countries 2016YTD
IPO
mo
ne
y r
ais
ed
& #
of
de
als
FO
mo
ne
y r
ais
ed
& #
of
de
als
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in both Europe and Middle East & Africa, total money raised is attributed to both regions. Top countries have been selected based on money raised in 2016YTD. If IPOs or FOs take place in two or more countries, total money raised is attributed to all countries.
Source: Dealogic as of 30 September 2016
$118,9bn
$21,0bn$8,0bn
$33,9bn $33,3bn$15,9bn
$37,2bn
$69,4bn $68,8bn
$21,6bn
$17,5bn
$15,6bn
$2,5bn
$3,3bn $2,0bn
$2,1bn
$3,3bn
$12,8bn $3,5bn
$1,4bn
675
18060
215 167101
181277 269
120
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
Europe Middle East & Africa Number of IPO's
$216,1bn $226,3bn
$318,8bn
$103,7bn $124,4bn $115,1bn$173,3bn $191,8bn $178,8bn
$81,9bn
$16,7bn$28,8bn
$9,7bn
$8,6bn$10,0bn $9,3bn
$6,8bn$13,8bn
$12,3bn
$7,4bn
1.047
572813 763
624519
632 731 798
509
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
Europe Middle East & Africa Number of FO's
United Kingdom,
26%
France, 11%
Netherlands, 8%Spain, 8%
Italy, 7%
Other, 40%
Denmark, 25%
United Kingdom,
19%
Netherlands, 14%
Sweden, 7%
Spain, 6%
Other, 29%
Money raised via IPOs and FOs in EMEAThe fallout from the Brexit hit Europe hard in the third quarter, which led to a fall to third place in terms of both IPO and FO proceeds and numbers
PwC
Q3 2016
IPO and FO activity in EMEA
2014 2015 2014YTD 2015YTD 2016YTD Q3 2014 Q3 2015 Q3 2016
IPO activity
Number of IPOs 277 269 215 192 120 42 33 18
% sponsor-backed 24.2% 24.5% 27.0% 26.0% 27.5% 19.0% 18.2% 22.2%
Money raised $81.7bn $71.7bn $62.4bn $46.6bn $23.0bn $9.8bn $5.3bn $4.7bn
% sponsor-backed 37.6% 42.5% 45.6% 46.5% 55.6% 25.4% 38.3% 58.7%
Advanced metrics
Free float % 40.0% 43.4% 41.3% 44.4% 39.9% 33.9% 48.7% 53.6%
Overallotment exercised (%)1 30.2% 37.8% 31.0% 40.3% 30.8% 17.1% 25.8% 11.1%
% secondary shares 31.9% 33.0% 32.1% 34.4% 38.8% 24.1% 26.9% 33.1%
FO activity
Number of FOs 731 798 533 577 509 164 159 158
Money raised $203.8bn $190.4bn $160.4bn $138.5bn $88.5bn $44.6bn $29.7bn $24.4bn
1
32
18
Quarterly ECM Briefing Source: Dealogic, Bloomberg as of 30 September 2016
2015 2016YTD
4% 5% 3% 3% 1%
22% 24% 22% 22% 28%
63% 57% 61% 58%61%
11% 13% 12% 15%10%
1% 1% 1% 2%
2014 2015 2014YTD 2015YTD 2016YTD
Below range Bottom of range In range Top of range Above range
75
100
125
150
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
CAC 40 DAX FTSE 100
3,7%4,5%
4,1%4,5% 5,2%
4,3%
6,7%5,6%
-0,2%
9,3%
1-Day 1-Week 1-Month 3-Month Current
Overview of IPO and FO activity in EMEAThe number of IPOs pricing above or at the top of the initial pricing range is the lowest in years in EMEA
• IPO activity in the EMEA region was especially weak in the third quarter, as proceeds totalled $4.7bn via 18 IPOs.
• The performance of IPOs in EMEA is lacking the other two regions, although performance of year-to-date IPOs is currently at a healthy 9.3%.
• The FTSE recovered remarkably quickly from the surprise Brexit referendum outcome, as investors went bargain hunting in the UK market.
1
2
3
1) Overallotment exercised (%) presents the percentage of IPOs in which the overallotment option has been exercised (either partly or in full)
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’
Global indicesIPO pricing dynamics Post-IPO performance (median)
PwC
Q3 2016
19
Quarterly ECM Briefing
Top 10 largest IPOs 2016YTD in EMEA
Top 10 largest FOs 2016YTD in EMEA
Source: Dealogic as of 30 September 2016
Pricing
dateIssuer name
Issuer
countrySector Exchange Filing range
Offer
pricePricing
Money
raised
Free
float
Secondary
shares (%)
Performance1-day 1-month Current
9-Jun-16 Dong Energy Utilities NASDAQ OMX C’gen 200.00 - 255.00 235.00 In range $3.0bn 20.1% 100.0% 9.8% 7.7% 17.0%
23-Sep-16 Nets Financials NASDAQ OMX C’gen 130.00 - 160.00 150.00 In range $2.4bn 52.5% 65.1% -3.3% N/A -1.5%
9-Jun-16 a.s.r. Financials Euronext Amsterdam 18.00 - 22.00 19.50 In range $1.2bn 36.3% 100.0% 2.6% -10.4% -7.1%
26-May-16 Philips Lighting Industrials Euronext Amsterdam 18.50 - 22.50 20.00 In range $1.0bn 28.8% 100.0% 10.0% 4.3% 18.4%
21-Jul-16 ENAV Industrials Borsa Italiana 2.90 - 3.50 3.30 In range $0.9bn 46.6% 100.0% 10.6% 10.6% 10.9%
6-May-16 MONETA Money Bank Financials Prague SE 68.00 - 85.00 68.00 Bottom of range $0.8bn 57.5% 100.0% 0.1% 8.2% 12.7%
28-Apr-16 Parques Reunidos Consumer Services Bolsa de Madrid 15.50 - 20.50 15.50 Bottom of range $0.7bn 48.0% 12.5% -4.8% -4.7% -20.5%
14-Apr-16 VAT Group Industrials SIX Swiss Exchange 39.00 - 46.00 45.00 Top of range $0.6bn 46.0% 100.0% 14.6% 18.9% 83.0%
25-Apr-16 Telepizza Group Consumer Services Bolsa de Madrid 7.00 - 9.50 7.75 In range $0.6bn 81.3% 78.4% -19.4% -16.1% -47.9%
3-Feb-16 CYBG Financials LSE 1.75 - 2.35 1.80 Bottom of range $0.6bn 25.0% 100.0% 6.7% 8.6% 47.6%
Pricing
dateIssuer name
Issuer
countrySector Exchange Filing range
Offer
priceDeal type
Money
raised
Secondary
shares (%)
Performance1-day 1-month Current
11-Feb-16 Saipem Oil & Gas Borsa Italiana 0.36 - 0.36 0.36 FO - Rights Offer $3.9bn 0.0% -16.7% 6.3% 4.1%
4-Apr-16 ArcelorMittal Basic Materials Euronext Amsterdam1 2.20 - 2.20 2.20 FO - Rights Offer $3.2bn 0.0% 80.9% 113.6% 147.6%
17-Jun-16 Banco Popular Espanol Financials Bolsa de Madrid 1.25 - 1.25 1.25 FO - Rights Offer $2.8bn 0.0% 11.3% 4.0% -11.9%
24-Aug-16 Melrose Industries Industrials LSE 0.95 - 0.95 0.95 FO - Accelerated Bookbuild $2.2bn 0.0% 53.2% 80.8% 83.7%
14-Apr-16 NN Group Financials Euronext Amsterdam 30.68 - 30.68 30.15 FO - Accelerated Bookbuild $1.6bn 100.0% -0.8% -3.4% -9.3%
22-Sep-16 CaixaBank Financials Bolsa de Madrid 2.35 - 2.35 2.26 FO - Accelerated Bookbuild $1.5bn 0.0% -0.1% N/A -0.5%
26-Apr-16 SABMiller Consumer Goods LSE 42.17 - 42.17 41.80 FO - Accelerated Bookbuild $1.4bn 100.0% 0.4% 2.1% 7.5%
5-Apr-16 Schaeffler Consumer Goods Deutsche Börse 13.10 - 13.50 13.10 FO - Accelerated Bookbuild $1.4bn 100.0% -1.4% -2.6% 7.5%
4-May-16 Compagnie de St-Gobain Industrials Euronext Paris 39.50 - 39.50 38.50 FO - Accelerated Bookbuild $1.3bn 100.0% -0.2% 3.4% -0.1%
3-Feb-16 LafargeHolcim Industrials SIX Swiss Exchange 39.89 - 39.89 36.25 FO - Accelerated Bookbuild $1.3bn 100.0% 6.5% 18.0% 44.8%
Leading transactions 2016YTD in EMEATwo Q3 IPOs managed to reach the top 5 largest IPOs this year, namely Nets on NASDAQ OMX and ENAV on Borsa Italiana
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. Country indicates the company’s Country of domicile. Sector classification is based on the Industry Classification Benchmark (ICB). 1) ArcelorMittal’s primary listing is on Euronext Amsterdam; it is also listed on Euronext Paris, NYSE, Luxembourg SE and BME.
PwC
Q3 2016
20
Quarterly ECM Briefing
Money raised and number of IPOs and FOs per sector 2014 – 2016YTD in EMEA
IPO
mo
ne
y r
ais
ed
& #
of
de
als
FO
mo
ne
y r
ais
ed
& #
of
de
als
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. Sector classification is based on the Industry Classification Benchmark (ICB). Financials include Closed-End Funds and Real Estate.
IndustrialsBasic
MaterialsHealth
CareTechnology
Consumer Goods
Financials Oil & GasConsumer
ServicesTelecom-
municationUtilities
Source: Dealogic, Bloomberg as of 30 September 2016
1,0 2,0 0,2 2,9
5,3 2,4
18,5
7,6 3,9
34,4
24,2
8,1
3,0 3,9 1,1
14,6 17,4
3,7 2,1 0,2 0,1 0,7 3,6
0,2 3,5
6,9
0,0 1,0 0,7 3,4
9 10 321
3113
5132
18
7388
31 32 3119
45 45
20 135 2
16 178 9 7 1 8 3 5
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
6,9 10,5 7,3 16,9
7,7 7,9
22,5 24,5
7,5
94,6 90,4
29,9
5,7 6,6 4,1
25,3 28,2 18,3
7,3 2,5 7,4 2,8 4,1 4,0 11,2 11,7
0,5 10,5
4,2 1,7
46 44 35 48 51 4082 97
51
231287
154
81 9167
113 11072 49 41 36 47 50 43
14 14 5 20 13 6
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
IPO and FO activity per sector in EMEAIn line with the global trend, Financials were the most active sector in terms of both IPO and FO activity in EMEA
PwC
Q3 2016
21
Quarterly ECM Briefing
IPO activity of top countries in EMEA 2012 – 2016YTD
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more countries, the total money raised and number of IPOs is attributed to all countries. Top countries have been selected based on the money raised in 2016YTD.
Source: Dealogic as of 30 September 2016
$2,9bn
-
$9,1bn$7,5bn
$3,1bn
2 6 8 5
2012 2013 2014 2015 2016YTD
- $0,7bn
$4,0bn$5,9bn
$1,5bn
215
3221
2012 2013 2014 2015 2016YTD
- $0,5bn$2,3bn
$0,2bn
$5,9bn
1 2 1 3
2012 2013 2014 2015 2016YTD
6,6
$21,1bn
$27,9bn
$19,8bn
$4,4bn
37
77
112
74
37
2012 2013 2014 2015 2016YTD
Top countries in terms of IPO activity in EMEADespite being the clear leader in terms of number of IPOs, the UK is outpaced by Denmark in terms of total money raised
PwC
Q3 2016
Asia-Pacific
22
Quarterly ECM Briefing
PwC
Q3 2016
23
Quarterly ECM Briefing
Money raised via IPOs and FOs in Asia-Pacific (10-year overview) Top countries 2016YTD
IPO
mo
ne
y r
ais
ed
& #
of
de
als
FO
mo
ne
y r
ais
ed
& #
of
de
als
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in both Asia and Australasia, total money raised is attributed to both regions. Top countries have been selected based on money raised in 2016YTD. If IPOs or FOs take place in two or more countries, total money raised is attributed to all countries.
Source: Dealogic as of 30 September 2016
$85,2bn
$30,2bn
$68,3bn
$125,6bn$91,0bn
$51,3bn $48,2bn$66,2bn $77,7bn
$43,0bn
$8,0bn
$1,6bn
$2,5bn
$7,5bn
$1,5bn
$1,5bn $10,2bn
$17,0bn $6,4bn
$3,7bn
697
301 325
760620
397 363
542664
412
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
Asia Australasia Number of IPO's
$148,1bn
$65,6bn
$183,5bn$144,3bn
$113,8bn $135,1bn $139,6bn $160,1bn$218,3bn
$154,2bn
$37,8bn
$35,4bn
$63,5bn
$17,2bn$23,5bn
$17,6bn $20,7bn$22,3bn
$41,6bn
$12,8bn
1.437
650
1.381 1.3491.074 978
1.263 1.3251.480
1.012
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
Asia Australasia Number of FO's
China, 66%
Hong Kong, 9%
Austrailia, 8%
Japan, 5%
South Korea, 3%Other, 9%
Hong Kong, 33%
China, 28%
Japan, 12%
Australia, 8%
India, 6%
Other, 13%
Money raised via IPOs and FOs in Asia-PacificWith Chinese growth worries fading to the background and monetary stimulus kicking in in Japan, the Asia-Pacific region experienced an active third quarter
PwC
Q3 2016
IPO and FO activity in Asia-Pacific
2014 2015 2014YTD 2015YTD 2016YTD Q3 2014 Q3 2015 Q3 2016
IPO activity
Number of IPOs 542 664 347 465 412 130 91 170
% sponsor-backed 8.9% 6.3% 11.2% 6.2% 3.4% 9.2% 11.0% 4.1%
Money raised $83.1bn $84.1bn $48.8bn $49.5bn $46.6bn $15.1bn $7.2bn $24.2bn
% sponsor-backed 20.5% 16.7% 30.5% 15.1% 5.6% 48.0% 32.1% 6.3%
Advanced metrics
Free float % 30.0% 27.6% 30.6% 27.9% 29.3% 30.8% 33.6% 29.1%
Overallotment exercised (%)1 22.9% 17.3% 22.6% 16.2% 14.5% 17.5% 19.8% 7.6%
% secondary shares 17.3% 13.4% 18.4% 12.1% 12.0% 15.2% 19.5% 10.6%
FO activity
Number of FOs 1,325 1,480 990 1,092 1012 364 340 420
Money raised $182.4bn $259.8bn $137.8bn $203.6bn $167.0bn $53.3bn $51.1bn $69.9bn
1
2
3
24
Quarterly ECM Briefing Source: Dealogic, Bloomberg as of 30 September 2016
3% 3% 1% 1% 3%9% 11% 11% 8% 13%
60% 56% 64%59% 48%
25% 27% 21%28% 34%
3% 3% 3% 4% 2%
2014 2015 2014YTD 2015YTD 2016YTD
Below range Bottom of range In range Top of range Above range
75
100
125
150
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
Hang Seng Nikkei 225 SENSEX
44,0%43,9%
70,6%
43,0%
90,6%
39,9%
92,2%
39,2%46,8%
37,1%
1-Day 1-Week 1-Month 3-Month Current
• In Q3 2016, 170 IPOs raised a total of $24.4bn. This represents a massive increase of 87% in terms of number of IPOs and 237% in terms of proceeds.
• FO activity grew less rapidly in the third quarter, with the number of deals climbing by 24% and proceeds by 37%. Activity was nonetheless higher than in the other regions.
• Despite massive monetary stimulus in Japan, the performance of the Nikkei 225 remains abysmal YTD, especially compared to the stellar performance of its Indian cousin.
1
2
3
Overview of IPO and FO activity in Asia-PacificInvestor appetite remains strong in Asia-Pacific, as over a third of IPOs priced above or at the top of their initial pricing range
2015 2016YTD
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’
Global indicesIPO pricing dynamics Post-IPO performance (median)
1) Overallotment exercised (%) presents the percentage of IPOs in which the overallotment option has been exercised (either partly or in full)
PwC
Q3 2016
25
Quarterly ECM Briefing
Top 10 largest IPOs 2016YTD in Asia-Pacific
Top 10 largest FOs 2016YTD in Asia-Pacific
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. Country indicates the company’s Country of domicile. Sector classification is based on the Industry Classification Benchmark (ICB).
Source: Dealogic as of 30 September 2016
Pricing
dateIssuer name
Issuer
countrySector Exchange Filing range
Offer
pricePricing
Money
raised
Free
float
Secondary
shares (%)
Performance
1-day 1-month Current
21-Sep-16 Postal Savings Bank of China Financials HKEx 4.68 - 5.18 4.76 Bottom of range $7.4bn 15.0% 0.0% 0.2% N/A 0.2%
21-Mar-16 China Zheshang Bank Financials HKEx 3.92 - 4.12 3.96 Bottom of range $1.9bn 21.7% 9.1% 0.0% -1.0% 0.5%
11-Jul-16 LINE Corp Technology Tokyo SE; NYSE 2,700 – 3,200 3,300 Above range $1.3bn 19.2% 0.0% 31.7% 28.3% 43.7
24-May-16 BOC Aviation Industrials HKEx 42.00 - 42.00 42.00 In range $1.1bn 30.0% 50.0% 0.0% -6.3% -5.0%
28-Jun-16 Bank of Jiangsu Financials Shanghai SE N/A 6.27 N/A $1.1bn 10.0% 0.0% 44.0% 91.6% 59.5%
20-Mar-16 Bank of Tianjin Financials HKEx 7.37 - 9.58 7.39 Bottom of range $1.0bn 17.2% 9.1% 0.0% 1.4% -12.5%
4-Feb-16 LaSalle Logiport REIT Financials Tokyo SE 92,000 - 100,000 100,000 Top of range $0.9bn 104.4% 0.0% 5.4% 5.3% 7.5%
22-Sep-16 ICICI Prudential Life Insurance Financials BSE; NSE 300.00 - 334.00 334.00 Top of range $0.9bn 12.7% 100.0% -10.9% N/A -7.2%
30-Jun-16 China Development Bank Financials HKEx 1.90 - 2.45 2.00 Bottom of range $0.8bn 24.9% 0.0% -7.0% -2.5% -4.0%
28-Apr-16 Reliance Worldwide Industrials Australian SE 2.27 - 2.50 2.50 Top of range $0.7bn 70.0% 0.0% 18.0% 24.4% 24.0%
Pricing
dateIssuer name
Issuer
countrySector Exchange Filing range
Offer
priceDeal type
Money
raised
Secondary
shares (%)
Performance
1-day 1-month Current
15-Apr-16 China Yangtze Power Utilities Shanghai SE 12.08 - 12.08 12.08 FO - Cash Placing $3.7bn 0.0% 2.2% 2.6% 10.1%
7-Sep-16 Hainan Airlines Consumer Services Shanghai SE 3.64 - 3.64 3.58 FO - Cash Placing $2.5bn 0.0% -6.7% N/A -10.6%
7-Jan-16 Bohai Leasing Industrials Shenzhen SE N/A 6.07 FO - Cash Placing $2.5bn 0.0% 24.1% 12.4% 18.3%
22-Jul-16 BYD Consumer Goods Shenzhen SE N/A 57.40 FO - Cash Placing $2.2bn 0.0% 5.4% 2.9% -3.2%
12-Sep-16 Recruit Holdings Industrials Tokyo SE 4,135 - 4,135 3,797 FO - Fully Marketed $2.1bn 100.0% 2.5% N/A 8.2%
7-Jul-16 Fengfan Stock Consumer Goods Shanghai SE N/A 29.80 FO - Cash Placing $2.0bn 0.0% 13.6% 4.4% 10.3%
7-Jan-16 Industrial Securities Financials Shanghai SE 13.13 - 13.13 8.19 FO - Rights Offer $1.9bn 0.0% 14.3% -4.8% -7.7%
28-Jun-16 True Corp Telecommunications Thailand SE 7.15 - 7.15 7.15 FO - Rights Offer $1.7bn 0.0% 2.1% 25.2% -2.8%
25-Mar-16 Guangzhou Friendship Group Consumer Services Shenzhen SE 9.40 - 9.40 8.90 FO - Cash Placing $1.5bn 0.0% 182.5% 131.2% 62.8%
19-Sep-16 Henan Billions Chemicals Basic Materials Shenzhen SE 18.93 - 18.93 7.62 FO - Cash Placing $1.5bn 0.0% 102.8% N/A 87.1%
Leading transactions 2016YTD in Asia-PacificThe widely anticipated dual IPO of LINE Corp on the Tokyo Stock Exchange and NYSE raised over $1.3bn in July
PwC
Q3 2016
26
Quarterly ECM Briefing
Money raised and number of IPOs and FOs per sector 2014 – 2016YTD in Asia-Pacific
IPO
mo
ne
y r
ais
ed
& #
of
de
als
FO
mo
ne
y r
ais
ed
& #
of
de
als
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. Sector classification is based on the Industry Classification Benchmark (ICB). Financials include Closed-End Funds and Real Estate.
IndustrialsBasic
MaterialsHealth
CareTechnology
Consumer Goods
Financials Oil & GasConsumer
ServicesTelecom-
municationUtilities
Source: Dealogic, Bloomberg as of 30 September 2016
3,6 3,2 1,9
13,2 8,2
4,6 8,7
5,4 3,7
22,1
35,1
23,0
6,5 6,0 1,4
15,1 13,2 7,7
1,0 1,4 0,3 4,9
7,3 3,4
0,2 0,2 -
7,9 4,2
0,7
3758
29
98125
5378
92
5474 83
6640
64
31
132154
121
11 10 4
61 6449
3 4 8 10 5
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
13,8
27,3 18,2 15,7
26,0 20,2
10,0 19,0 20,0
58,1
99,2
31,5
6,5 16,6
8,8
47,1 37,4
42,9
9,9 12,1 4,0 8,4 9,2 9,6 6,2
1,2 4,1 6,6 11,7 7,6
167 155 140168
201149 131
171
100
284 317
147
75114
67
277 301243
55 44 30
108 12799
27 15 19 33 35 18
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
'14 '15 '16YTD
IPO and FO activity per sector in Asia-PacificWhereas Financials dominate the IPO market in terms of IPO proceeds, Industrials are the most active in terms of number of IPOs and FOs well as in terms of FO proceeds
PwC
Q3 2016
27
Quarterly ECM Briefing
IPO activity of top countries in Asia-Pacific 2012 – 2016YTD
Note: included deals > $5m, excluding PIPO’s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more countries, the total money raised and number of IPOs is attributed to all countries. Top countries have been selected based on the money raised in 2016YTD.
Source: Dealogic as of 30 September 2016
$8,0bn
$18,9bn
$28,7bn
$23,7bn
$15,4bn
5592 108 116
65
2012 2013 2014 2015 2016YTD
$14,5bn
-
$12,9bn
$25,8bn
$13,3bn
142 126
220
138
2012 2013 2014 2015 2016YTD
$12,7bn$10,2bn $11,6bn
$15,6bn
$5,5bn
42 5475 78
50
2012 2013 2014 2015 2016YTD
$1,5bn
$10,0bn
$16,7bn
$6,4bn$3,5bn
2550
72 7638
2012 2013 2014 2015 2016YTD
Top countries in terms of IPO activity in Asia-PacificHong Kong remains one of the most active countries worldwide for IPOs, remaining a gateway into Mainland China for Western investors
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