普华永道-2017年Q3全球科技行业IPO回顾（英文版）-2017-45页

Q3 2017 Global Technology IPO Review Summary

Core Content

The third quarter of 2017 saw a decline in the number and proceeds of global technology IPOs compared to the previous quarter, but activity picked up in the final month of the quarter, setting a positive tone for the fourth quarter. Despite the overall slowdown, the tech IPO market remained strong, driven by robust capital markets and a solid pipeline of quality companies. The center of gravity in the tech IPO market shifted further eastward, with Asia accounting for 80% of all tech IPOs, while the US saw a significant drop in activity.

Main Points

• Total IPOs and Proceeds:

  • 20 tech IPOs with total proceeds of US$5.2 billion.
  • A 31% drop in volume and 15% decrease in proceeds compared to Q2 2017.
  • Only a 3% decrease in proceeds compared to Q3 2016.

• Unicorn Activity:

  • Only one Unicorn IPO occurred in Q3 2017, and it was Despegar.com from Argentina, not the US or China.
  • The poor aftermarket performance of previous Unicorns affected investor confidence and reduced risk-taking in the US and China.

• Regional Performance:

  • Asia dominated with 16 IPOs raising US$1.7 billion, with Greater China (China and Taiwan) accounting for 11 of them.
  • Europe had the two largest tech IPOs, totaling US$2.9 billion, but the UK remained absent due to Brexit-related challenges.
  • The US had just one tech IPO, raising US$252 million, marking a 83% drop in listings and 67% drop in proceeds from Q2 2017.

• Subsector Highlights:

  • Electronics was the top subsector with 9 IPOs raising US$3.6 billion, led by Landis+Gyr Group AG (US$2.4 billion) and Foxconn Interconnect Technology Ltd. (US$3.2 billion).
  • Software ranked second with 4 IPOs and US$718 million in proceeds.
  • Internet Software & Services ranked third with 3 IPOs and US$616 million in proceeds, but both IPOs and proceeds dropped significantly from Q2.
  • Semiconductors and Computers & Peripherals had the lowest IPO activity and proceeds.

Key Financials

• Average Proceeds: US$261 million in Q3 2017, up 24% from Q2.
• Net Income:
  • 90% of companies reported net income, up from 72% in Q2.
  • Average LTM net income was US$22 million, up 263% from Q2.
• Revenue:
  • Average LTM revenue was US$385 million, up 72% from Q2.
  • Electronics led with US$678 million in average revenue.
• EBITDA and EV:
  • Electronics had the highest average EV of US$1.655 billion.
  • Software had the highest average LTM net income of US$30 million.
  • EV/LTM revenue and EV/LTM EBITDA multiples declined across all subsectors.

Valuation Metrics

• EV/LTM revenue for Q3 2017 was 3.4x (down from 3.6x in Q2).
• EV/LTM EBITDA was 26.2x (down from 27.4x in Q2).
• Computers & Peripherals had the highest EV/LTM revenue multiple of 9.4x and EV/LTM EBITDA of 83.7x.
• Electronics had the lowest EV/LTM revenue multiple of 22.4x, despite the highest average revenue.

Outlook

• The macro environment remains positive, with a robust pipeline and upbeat capital markets.
• The US tech IPO market is expected to improve in Q4, with several stalled Unicorns likely to pursue listings.
• Greater China is expected to maintain its dominance, with a stable number of TMT IPOs and increased interest in Hong Kong as a listing platform.
• Europe is showing signs of recovery, with low volatility and a healthy pipeline of new entrants.
• Asia continues to be the center of gravity for tech IPOs, with a strong showing in both volume and proceeds.

Methodology

• Data sourced from S&P Capital IQ.
• Only IPOs with issue size greater than US$40 million were included.
• The analysis covers the period 1 April 2017 to 30 June 2017 (Q3).
• LTM refers to Last 12 Months.
• Most figures are rounded to one decimal, except where more precision is required.

For More Information

• Raman Chitkara (Global Technology Leader, PwC): raman.chitkara@pwc.com
• Jianbin Gao (Technology Industry Leader, PwC China):
• Steven Kang (Technology Industry Leader, PwC South Korea):
• Werner Ballhaus (European Technology, Media and Telecommunications Leader, PwC Germany):
• Alan Jones (Technology Deals Partner, PwC US):
• Rod Dring (Australia): rod.dring@au.pwc.com
• Estela Viei:

Summary

The Q3 2017 global tech IPO market experienced a slowdown compared to Q2, but the final month saw increased activity, suggesting a potentially stronger Q4. Asia continued to lead in both volume and proceeds, with Greater China dominating. The US had minimal activity, and the UK remained absent due to Brexit. Electronics was the most active subsector, while Internet Software & Services saw a significant decline. The market remains robust, with a healthy pipeline and positive investor sentiment, setting the stage for continued growth in the coming quarters.