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

Singapore, 29 June 2017

  • Share
EY - Download the PDF
  • Asia-Pacific sees best first half in 15 years; Asean market outperforms the previous quarter
  • Global IPO volume in H1 2017 up 70% and capital raised up 90% compared with H1 2016

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 Asean (48), Australia (& New Zealand) (45), Japan (38) and South Korea (20).

In Q2 2017, Asean markets enjoyed a stronger performance compared to the previous quarter, in both volume (Q2:33 deals Q1:15 deals) and proceeds (Q2: US$3.1b Q1: US$1.1b). Indonesia Stock Exchange (IDX) was the most active exchange in Asean, with 13 deals raising US$220.7m, while the highest proceeds came from Malaysia (US$1.34b), Thailand (US$905.3m) and the Philippines (US$361.4m). In Singapore, five IPOs on the Singapore Exchange (SGX) raised a total of US$182m in Q2 2017.

Max Loh, EY Asean and Singapore Managing Partner, Ernst & Young LLP, comments:

“Asia-Pacific’s position as the leading center of IPO activity will remain unchallenged through the remainder of 2017 with Greater China leading the way. Notably, Korea made a significant contribution to total proceeds in H1 2017, with mega IPOs from the technology and financial sectors.”

“Across Asean, investor confidence is strengthening due to the growth of the global and Southeast Asian economies. The SGX is likely to lead the IPO pipeline for Southeast Asia in the second half of 2017 being well-positioned as a platform for growth, alongside Indonesia, Thailand and the Philippines. We expect to see greater investment liquidity in H2 2017, which will be good news for companies that are planning to go public. The SGX is making efforts to help local technology companies access the capital market, and this should drive IPO transactions in the near future."

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.

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.

- Ends -

Notes to Editors

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

About the data

Analysis included on this press release includes all deals listed up to 16 June and EY’s expectation of deals that will close in the rest of the month. Data sourced from Dealogic as of 17 June 2017.  January 2017 through June 2017 (i.e., H1 2017) IPO activity is based on priced IPOs as of 16 June and expected IPOs by the end of June.

EY - 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 capital raised

Consumer products and services

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%

83,396

100%

About EY’s IPO offering

EY is a leader in helping companies go public worldwide. With decades of experience, our global network is dedicated to serving market leaders and helping businesses evaluate the pros and cons of an initial public offering (IPO). We demystify the process by offering IPO readiness assessments, IPO preparation, project management and execution services, all of which help prepare you for life in the public spotlight. Our Global IPO Center of Excellence is a virtual hub, which provides access to our IPO knowledge, tools, thought leadership and contacts from around the world in one easy-to-use source. ey.com/ipocenter.