Global IPO activity up despite heightened investor caution

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  • IPO volume and proceeds worldwide both up more than 60% on first half of 2013

Beijing, Shanghai and Hong Kong, 30 June 2014 - The global IPO market continued its recovery to end the first half of the year strongly, according to EY Global IPO Trends: 2014 Q2. There were a total of 588 deals raising around US$117.7b in the first six months of the year, an increase of 60% and 67% respectively on the same period in 2013 and the highest amount of capital raised in the first half since 2007. In Q214, there were 333 IPOs raising US$70.7b, a 30.6% increase on the previous quarter and a rise of 62.4% compared to Q213 by deal numbers.

Activity was spread broadly across sectors, with health care the most active in the first half of the year, with 103 IPOs, more than double the volume in the same period in 2013. Technology IPOs doubled in number (78 IPOs), while energy raised the most capital through IPOs in the first six months of 2014 (US$17.6b).

Terence Ho, EY’s Greater China IPO Leader says: “The IPO market is very strong across a number of regions and sectors and all the indicators are that this upward trend is sustainable. Pricing is now starting to come under pressure in some markets, suggesting that investors are displaying a savvy and commendable level of caution. They are not prepared to invest in deals that are over-valued, which means that now more than ever those companies which come to market at the right time with the right growth story will only attract investor interest if they are priced right.”

Asia-Pacific leads by deal volume

Asia-Pacific exchanges saw more IPOs in the first half of 2014 than any other region with 217 deals raising US$33.7b, an increase of 64% and 45% respectively on the first half of 2013. Four of the 20 largest IPOs in the first half of 2014 were on Asian exchanges – three IPOs on Hong Kong and one IPO on Tokyo Stock Exchange. However, activity slowed down in Q214 compared to the first quarter of the year.

“After a bumper start to the year with the reopening of Mainland China’s exchanges to new listings, activity slowed due to approvals again being placed on hold for most of the second quarter,” says Ivan Tong, EY’s Assurance & Advisory Business Services Partner. “But with a further 100 Chinese companies now expected to list in this year and solid investor confidence across a range of markets including Hong Kong, Japan and Australia, the stage is set for considerable, albeit constrained, IPO activity in the second half of the year.”

Prospects are bright for the second half of 2014

Ho concludes: “In the second half of 2014 we expect the global IPO market to be characterized by a period of normalization. As economic recovery continues in many markets, equity indices remain buoyant and volatility is trending downward, the fundamentals are in place for a sustained period of strong and steady IPO activity.”

“Investor confidence has been bolstered by the relatively strong after-performance of companies that have recently gone public compared to returns in the equity markets more generally. With a solid pipeline of IPO-ready businesses across a broad range of geographic markets and from multiple sectors, there is no shortage of supply. This will increase the pressure on pricing as investors will be wary of meeting over-optimistic valuations.

“We expect a significant uptick of IPOs in the second half of 2014 from the financial, real estate, health care, technology and consumer products and services sectors, which will benefit from an increase in consumer confidence.”


Notes to editors

About the data
Analysis included on this press release includes all deals listed up to early June and EY’s expectation of deals that will close in the rest of the month. Data sourced from Dealogic as of 17 June 2014. January 2014 through June 2014 IPO activity is based on priced IPOs as of 17 June and expected IPOs by the end of June.

About EY’s IPO offering
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Appendix: January 2014 - June 2014 global IPOs by sector

Appendix: January 2014 - June 2014 global IPOs by sector


Number of deals

% of global deal number

(US$ M)

% of global capital raised

Health care















Consumer products and services




















Real estate










Consumer staples





Media and entertainment










Grand Total