普华永道：全球科技行业IPO回顾2017年第一季度_50页_445kb

Global Technology IPO Review - Q1 2017 Summary

Core Content

Q1 2017 marked a significant rebound for the global technology IPO market, which had faced challenges in 2016. The quarter saw 18 technology companies listing, raising a total of $5.8 billion, the highest in the last five consecutive quarters. This reflects a 234% sequential growth and 655% year-on-year growth in total proceeds, along with an 80% increase in the number of listings.

Snap Inc and MuleSoft Inc, both Unicorns, were the standout companies in Q1 2017, with Snap raising $3.9 billion, the largest IPO since Alibaba in 2014. The Internet Software & Services subsector dominated the market, contributing $4.4 billion in proceeds, with 1,470% year-on-year growth.

China showed a strong resurgence in Q1 2017, with 12 tech IPOs raising $1.2 billion, representing 78% of global offerings. The Chinese stock market regulators, particularly the CSRC, played a key role in facilitating more tech IPOs. Japan had a modest contribution with 2 tech IPOs, while the US had 4 tech IPOs with $4.5 billion in proceeds. Europe and the UK were largely inactive due to political uncertainty from Brexit and ongoing elections.

Main Points

• Market Performance:

  • 18 tech IPOs raised $5.8 billion in Q1 2017, the highest since Q3 2014.
  • Snap Inc was the largest IPO of the quarter, raising $3.9 billion.
  • Internet Software & Services subsector led the market, contributing $4.4 billion in proceeds.
  • China was the most active region, with 12 tech IPOs and $1.2 billion in proceeds, while the US accounted for $4.5 billion.

• Geographic Activity:

  • Asia-Pacific (China, Japan) accounted for $1.3 billion in proceeds, 78% of the global offerings.
  • US dominated in terms of proceeds, contributing $4.5 billion or 77% of the total.
  • Europe and UK saw no tech IPOs due to political uncertainty and market volatility.

• Subsector Growth:

  • Internet Software & Services had the most IPOs (5), with $4.4 billion in proceeds.
  • Communications Equipment saw $426 million in proceeds, driven by 4 Chinese listings.
  • Semiconductors raised $345 million, with 3 Chinese listings.

• Financial Highlights:

  • The average LTM revenue for Q1 2017 tech IPOs was $356 million, with 78% of companies reporting net income.
  • Snap had the highest LTM loss at $515 million, while Semiconductors had the highest average net income at $36 million.
  • EV/LTM revenue increased to 8x in Q1 2017 from 5.1x in Q4 2016, with Internet Software & Services having the highest multiple at 27.9x.

• IPO Trends:

  • VC-backed IPOs were prominent, with 10 out of 18 tech IPOs being VC-backed.
  • China had the most VC-backed IPOs (6), followed by the US (3) and Japan (1).
  • There were no cross-border IPOs in Q1 2017, as Chinese companies opted for domestic listings due to favorable valuations.

Key Information

• Snap Inc was the third-largest tech IPO in the last seven years, behind Alibaba and Facebook.
• China had the most private companies valued at over $1 billion outside the US, with 46 Unicorns.
• Europe is expected to recover in the latter half of 2017, as elections conclude and the impact of Brexit becomes clearer.
• Macro-economic and geopolitical factors such as US protectionism and European uncertainty may slow the momentum in the tech IPO market.
• The Internet Software & Services subsector accounted for 78% of all tech IPOs in Q1 2017.
• Semiconductors and Communications Equipment also saw strong growth, especially from Chinese companies.

Outlook

The global tech IPO market is expected to benefit from improving economic sentiment in 2017. However, political uncertainty in Europe and perceived US protectionism may pose headwinds. The US market is likely to continue driving tech IPO activity, while China is poised for a record number of tech IPOs in 2017. The Internet Software & Services subsector remains the strongest, with Snap acting as a catalyst for growth.