Global IPOs in H1 2017 rebound from market uncertainty with most activity since 2007

Wednesday, 5 July 2017

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  • Brisk pace of IPO activity has continued into the second quarter
  • Global IPO volume in H1 2017 up 70% and capital raised up 90% compared with H1 2016
  • Australia ranked 4th globally for IPO activity in H1 2017 by number of listings
  • Asia-Pacific sees best first half in 15 years, accounting for 61% of global IPOs and 44% of global proceeds in H1 2017

The global IPO market in the first half of 2017 is off to one of its strongest starts in nearly a decade. H1 2017 saw proceeds rise by 90% (US$83.4b) and the number of deals increase by 70% (772 IPOs) compared with the first half of 2016. What's more, with 772 IPOs raising US$83.4b, H1 2017 was the most active first half of a year by global number of IPOs since H1 2007. These and other findings were published today in the latest EY Global IPO Trends: Q2 2017.

The Asia-Pacific region leads the global IPO market in terms of volume and proceeds, accounting for 61% (468) of IPOs worldwide and 44% (US$37b) of global proceeds – the highest first half of a year of activity for the region since 2002. Meanwhile, the Americas region accounting for 13% of global IPOs (99 IPOs raising US$25.8b), was led by the US where it saw its own activity surge with proceeds swelling by 216%. EMEIA representing 26% of global IPOs saw modest gains despite geopolitical uncertainties compared with its H1 2016 performance, with volume increasing by 22% (205) and proceeds increasing by 9% (US$20.5b) in the first half of the year.

Dr. Martin Steinbach, EY Global and EY EMEIA IPO Leader, says:

“Economic fundamentals are improving in the major developed economies and IPO pipelines are building. Activity is underpinned by rallies in many bull markets reaching all-time highs, while investor sentiment has brightened and global outlook is positive. With the momentum of the first half, 2017 is poised to surpass 2016 global IPO levels by both number and proceeds.”

Asia-Pacific dominates global IPOs

Although IPO activity was slightly down in Q2 2017 compared with the first quarter, Asia-Pacific continued to dominate activity globally. Activity was broadly spread throughout the region with Greater China exchanges the busiest in H1 2017 with 317 IPOs ahead of Australia (& New Zealand) (45), Southeast Asia (48), Japan (38) and South Korea (20). The region also hosted two of the world’s three largest IPOs in H1 2017 and saw ten deals greater than US$500m.

Australia ranks 4th in number of listings

Gavin Sultana EY Oceania IPO Leader said, “Asia-Pacific’s position as the leading center of IPO activity will remain unchallenged through the remainder of 2017. Australia ranked fourth among global stock exchanges by deal volume, dominated by small caps. Conditions for large cap IPOs were more challenging than 2016 with investors adopting a cautious approach to new listings which has impacted pricing and restricted volumes.”

“We anticipate the activity for small caps will remain strong, supported by an increase in the number of foreign companies listing on the ASX which accounted for approximately 20% of IPO listings in H1 2017. We expect investors to continue to be selective in which larger issues they support restricting IPO volumes at the top end of the market.”

Americas shines with positive outlook and robust pipeline in US

US IPO activity in H1 2017 easily surpassed its H1 2016 performance in terms of both number and proceeds. A total of 80 IPOs raised US$22b, an increase of 216% in terms of proceeds raised and 82% by deal number. In the Americas overall, H1 2017 saw median deal size rise by 78% from US$65.8m in H1 2016 to US$117.1m.

Eight of the top twenty deals in H1 2017 originated from Canadian, Mexican and US exchanges. In terms of proceeds, NYSE regained the top spot among the world’s exchanges, hosting three of the year’s top ten global deals including the largest, and the first US technology listing of the year. NASDAQ ranked eighth in the world by proceeds (US$3.1b).

IPOs holding steady in EMEIA with India posting strong gains

Supported by a strong increase (216%) in European deal proceeds in Q2 2017 compared with Q1 2017, the EMEIA region accounted for 26% of global IPOs by deal number. EMEIA raised US$20.5b in H1 2017, a slight increase of 9% (US$18.9b) compared with H1 2016. With a total of 205 IPOs, EMEIA remains the second most active market behind Asia-Pacific. Deal volume for the region increased by 22% over H1 2016.

Looking more closely, India and the Nordics were the most active IPO markets in EMEIA. India has been particularly strong, posting US$2.3b in proceeds from 57 IPOs in H1 2017. The NASDAQ OMX and First North exchange was the most active IPO market in Europe by deal number in H1 2017 with 44 IPOs, which raised US$2.2b – its highest level of deal activity in the last 15 years for the first half of a year.

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Notes to editors

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EY - Appendix: 2008 - Q2 2017 Global IPO activity

Appendix: January 2017 – June 2017 global IPOs by sector

Sector

Number of IPOs

% of global IPOs

Proceeds (US$m)

% of global proceeds

Consumer products

91

11.8%

$6,624

7.9%

Consumer staples

45

5.8%

$3,873

4.6%

Energy

52

6.7%

$9,376

11.2%

Financials

39

5.1%

$10,796

12.9%

Health care

81

10.5%

$7,029

8.4%

Technology

114

14.8%

$13,473

16.2%

Industrials

134

17.4%

$12,403

14.9%

Materials

93

12.0%

$4,135

5.0%

Media and entertainment

34

4.4%

$3,461

4.1%

Real estate

35

4.5%

$6,627

7.9%

Retail

40

5.2%

$4,707

5.9%

Telecommunications

14

1.8%

$892

1.1%

Global total

772

100.0%

$33,694

100.0%

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