2017年-普华永道中国_全球科技行业IPO回顾2017年第三季度_45页_1mb

2017 Q3 Global Technology IPO Review Summary

Core Content

The third quarter of 2017 saw a slowdown in global technology IPO activity, with 20 IPOs raising a total of US$5.2 billion, representing a 31% drop in volume and a 15% decline in proceeds compared to the previous quarter. However, the year-over-year decline in proceeds was only 3%, and the quarter ended with a notable increase in activity, particularly in September, which saw 13 of the 20 technology IPOs, setting the stage for a potentially stronger fourth quarter.

Despite the overall decline, the market remained robust, with the best nine-month results since 2014. The total proceeds for the year-to-date were US$17.1 billion, driven by three major IPOs: Snap Inc, Landis+Gyr Group, and Netmarble.

Main Points

• IPO Volume and Proceeds:

  • 20 tech IPOs in Q3 2017, down 31% from Q2.
  • Total proceeds of US$5.2 billion, down 15% from Q2 but only 3% lower than Q3 2016.
  • The average proceeds per IPO rose to US$261 million, up 24% from the previous quarter.

• Unicorn IPOs:

  • Only one Unicorn IPO occurred in Q3, which was Despegar.com from Argentina.
  • The US and China had no Unicorn IPOs in the quarter, indicating a cautious environment for high-growth tech firms.

• Geographic Distribution:

  • Asia accounted for 80% of the tech IPOs, with 16 offerings.
    • Greater China (China and Taiwan) had 11 IPOs, raising US$1.3 billion.
    • South Korea had 3 IPOs, Japan and India each had 1.
  • Europe had the highest proceeds with two major offerings totaling US$2.9 billion.
  • The US had just one tech IPO, raising US$252 million.

• Subsector Performance:

  • Electronics led the market with 9 IPOs and US$3.6 billion in proceeds, the highest in the quarter.
  • Software was second with 4 IPOs and US$718 million in proceeds.
  • Internet Software & Services ranked third with 3 IPOs and US$616 million in proceeds.
  • Semiconductors and Computers & Peripherals had fewer IPOs and lower proceeds.

• Market Conditions:

  • The macro environment remained positive for the IPO market, with a strong pipeline of quality companies.
  • The US market faced challenges due to the poor aftermarket performance of recent Unicorns, which affected investor sentiment.
  • Europe showed signs of recovery, with increased stability and a healthy IPO pipeline.
  • Asia continued to be the center of gravity for tech IPOs, with strong performance in both volume and proceeds.

Key Financials

• Total IPOs: 20
• Total Proceeds: US$5.2 billion
• Average Proceeds per IPO: US$261 million
• Net Income:
  • 90% of companies reported net income, up from 72% in Q2.
  • Average LTM net income was US$22 million, up 263% from the previous quarter.
• Revenue:
  • Average LTM revenue was US$385 million, up 72% from Q2.
• EBITDA:
  • Average LTM EBITDA was US$141 million, up 165% from Q2.
• Enterprise Value (EV):
  • Average EV was US$1,655 million for Electronics, US$1,027 million for Software, and US$439 million for Semiconductors.

Valuation Metrics

• EV/LTM Revenue:
  • Electronics: 22.4x
  • Software: 7.6x
  • Internet Software & Services: 5.9x
• EV/LTM EBITDA:
  • Electronics: 26.2x
  • Software: 36.5x
  • Internet Software & Services: 27.4x

Summary of Subsectors

Key Insights

• The shift of tech IPO activity from the West to the East is evident, with Asia accounting for the majority of the IPOs.
• The US market remained weak, with only one tech IPO, likely due to the underperformance of recent Unicorns.
• Europe showed improvement, with the two largest IPOs of the quarter and a positive outlook for the remainder of the year.
• The backlog of companies in Greater China, government support, and a strong equity market contributed to the region's continued dominance.

Methodology

• The report is based on PwC's analysis of transaction data from S&P Capital IQ.
• The analysis covers the period from 1 April 2017 to 30 June 2017 (Q3).
• Only IPOs with issue size greater than US$40 million were included.
• Financial data was sourced from S&P Capital IQ.

Contact for More Information

• Raman Chitkara, Global Technology Industry Leader
  Email: raman.chitkara@pwc.com
  Phone: 1408 817 3746

• Jianbin Gao, Technology Industry Leader, PwC China
  Email: jianbin.gao@pwc.com

• Steven Kang, Technology Industry Leader, PwC South Korea
  Email: steven.kang@pwc.com