20180423-普华永道-Global_Technology__IPO_Review_Full-year_and_Q42017_64页_566kb

Global Technology IPO Market Summary (2017)

Core Content

The global technology IPO market showed a strong rebound in 2017 after a weak 2016, with a total of 100 technology IPOs raising $25.1 billion. This marked the second-highest number of listings and the third-highest gross proceeds in the last ten years. The market was characterized by increased stability, strong capital markets, and reduced volatility, which supported the recovery.

Main Points

• Market Recovery: The global tech IPO market rebounded significantly in 2017, driven by a stable economy and improved capital market conditions.
• Geographic Dominance: Asia dominated the market, accounting for 65% of the total listings. China led in the number of IPOs, with 51 listings, while the US had 24.
• Proceeds Comparison: Despite China's high number of listings, the US raised more total proceeds ($8.1 billion) due to the absence of a major "Unicorn" IPO in China.
• Cross-Border Listings: Cross-border IPOs declined in 2017, with only 12% of total listings, as more companies opted for home markets.
• Subsector Performance: The Internet Software & Services subsector remained the largest contributor, raising $13.7 billion. The Electronics subsector emerged as a new growth area.

Key Financial Highlights

• Total IPOs: 100
• Total Proceeds: $25.1 billion
• US IPOs: 24, raising $8.1 billion
• China IPOs: 51, raising $7 billion
• Asia (excluding China): 60 IPOs, raising $11,408 million
• Europe (excluding UK): 25 IPOs, raising $4,328 million
• UK IPOs: 2, raising $324.1 million
• Top IPOs: Snap Inc. ($3.91 billion), Netmarble Games Corporation ($2.35 billion), Landis+Gyr Group AG ($2.42 billion), China Literature Limited ($1.12 billion), and Qudian Inc. ($900 million)

Regional Trends

Asia

• China: 51 IPOs, $7 billion in proceeds, with strong growth in the number of listings.
• South Korea: 6 IPOs, with Netmarble Games raising $2.35 billion.
• Japan: 4 IPOs, with the Tokyo Stock Exchange being a key platform.
• Singapore: 1 IPO, but the second-highest proceeds in the region.

United States

• Proceeds: $8.1 billion from 24 IPOs.
• Notable Listings: Cloudera Inc., Okta Inc., Roku Inc., and MongoDB Inc.
• Market Conditions: Strong bull market, low volatility, and good corporate earnings contributed to the rebound.

Europe and the UK

• Europe (excluding UK): 25 IPOs, $4.328 billion in proceeds, with Landis+Gyr Group AG as the largest.
• UK: 2 IPOs, $324.1 million in proceeds, with Alfa Financial Software and Sumo Digital being the highlights.
• Brexit Impact: Uncertainty and volatility from Brexit led to delayed IPOs.

Global Trends

• Momentum: The first half of 2017 saw a 430% increase in proceeds and a 96% increase in volume compared to 2016.
• Second Half Growth: The second half of the year saw a 85% increase in proceeds and a 77% increase in volume compared to the second half of 2016.
• IPO Process: The US SEC made the IPO process easier, while the CSRC in China introduced more stringent and transparent measures to improve listing quality.
• Regulatory Changes: The UK's FCA introduced new rules for IPOs starting on July 1, 2018.

Outlook for 2018

With the global economy on a growth trajectory and major markets showing optimism, the tech IPO market is expected to continue its momentum in 2018. The UK and Hong Kong are anticipated to see increased activity, especially with the introduction of new regulations and market-friendly policies.

Summary of Key Subsectors

• Internet Software & Services: Dominated with 27 IPOs, raising $13.7 billion. Notable companies included Snap Inc., Netmarble Games, and Qudian Inc.
• Electronics: Emerged as a new star, with several high-proceeds IPOs.
• Semiconductors: Saw strong growth, with multiple listings contributing to the overall market performance.

Methodology Note

• Issue Size: Greater than $40 million (includes allotment).
• Data Source: S&P Capital IQ with analysis by PwC.

Conclusion

The 2017 global tech IPO market showed signs of recovery, with Asia continuing to lead in volume and the US in proceeds. Despite the absence of major unicorn IPOs and mixed after-market performance, the year ended on a positive note, setting the stage for a potentially stronger 2018.