Q3'13 Global IPO update - EY

2014 Global IPO update January - December 2014

Table of contents Section

Content

1

2014 January - December highlights

2

Global IPO activity trends    

Page 2

Slides 4-8 10-14

Global analysis Regional analysis Industry analysis Stock exchange analysis

3

PE-backed IPO activity

16-19

4

Appendices

21-30

2014 Global IPO update


Content

1


2


Page 3

Slides 4-8 10-14


3


16-19

4

Appendices

21-30


2014* saw a 50% increase in proceeds and a 35% increase in the number of IPOs, compared with 2013 Global IPO activity summary By proceeds raised (US$b)

By number of deals

35%

336

74.9

3%

325

895 646

256.5

50%

1,206

By proceeds raised (US$b)

By number of deals

171.1 878 328

66,8

2013

2014*

2013

69.3

42,3 51,3

132,1

229

273

124,4

96

63

104,3

249

-7%

2014*

32,6 Q4'13 Q4'14* Financial sponsored (PE/VC backed)

18,0

Q4'13

Q4'14*

Non-financial sponsored

Top three IPO deals (by capital raised) during 2014* Issuer name

Domicile country

Industry

Exchange

Alibaba Group Holding Ltd. National Commercial Bank (NCB)

China Saudi Arabia

Technology Financials

New York (NYSE) Saudi (Tadawul)

Medibank Private Ltd

Australia

Financials

Australian (ASX)

Proceeds (US$m)

% of global capital

25,032.3 5,996.8

9.8% 2.3%

4,923.5

1.9%

Top three PE-backed IPOs (by capital raised) during 2014* Issuer name Alibaba Group Holding Ltd.

Domicile country

Industry

Exchange

Proceeds (US$m)

% of global capital

China

Technology

New York (NYSE)

25,032.3

9.8%

Ally Financial Inc.

United States

Financials

New York (NYSE)

2,556.1

1.0%

NN Group NV

Netherlands

Financials

Euronext (Amsterdam)

2,419.2

0.9%

Top three VC-backed IPOs (by capital raised) during 2014* Issuer name

Domicile country

Industry

Exchange

Proceeds (US$ m)

% of global capital

JD.com Inc.

China

Retail

NASDAQ

2,047.0

0.8%

Recruit Holdings Co Ltd.

Japan

Technology

Tokyo (TSE)

1,967.7

0.8%

Rocket Internet AG

Germany

Technology

Deutsche Borse

1,775.8

0.7%

Financial sponsor backed IPOs refers to deals that are backed by PE or VC investors or both. *Data for Q4’14* and 2014 *is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time. As of 8 December, Dalian Wanda Commercial Properties Co.,Ltd.is expected to raise US$3.9b on 19th December , making this the fourth largest IPOs by capital raised in 2014 when it is completed..

Page 4


Global IPO activity To access this infographic in PDF format, please go to EY’s IPO webpages (www.ey.com/ipo) to access the EY Global IPO Trends: 2014 Q4 report.

Page 5


Asia-Pacific1 and Greater China2 IPO activity To access this infographic in PDF format, please go to EY’s IPO webpages (www.ey.com/ipo) to access the EY Global IPO Trends: 2014 Q4 report.

1Based in IPO activity on Asia-Pacific stock exchanges. 2Based in IPO activity on Greater China stock exchanges (i.e.,, Shanghai Stock Exchange, Shenzhen Stock Exchange – the Mainboard, SME and ChiNext, Hong Kong Stock Exchange – Main Board, GEM and Taiwanese Stock Exchange).

Page 6


EMEIA1 and UK2 IPO activity To access this infographic in PDF format, please go to EY’s IPO webpages (www.ey.com/ipo) to access the EY Global IPO Trends: 2014 Q4 report.

1Based

Page 7

in IPO activity on EMEIA stock exchanges. 2Based in IPO activity on London Main Market and Alternative Investment Market (AIM).


US IPO activity1 To access this infographic in PDF format, please go to EY’s IPO webpages (www.ey.com/ipo) to access the EY Global IPO Trends: 2014 Q4 report.

1Based

Page 8

in IPO activity on US stock exchanges: NYSE, NASDAQ



Content

1


2


Page 9

Slides 4-8 10-14


3


16-19

4

Appendices

21-30


Global IPO activity trends IPO activity saw a significant increase in 2014* compared with 2013, with proceeds and deal numbers increasing by 50% and 35%, respectively. Global IPO activity (2011-2014*) 1.243

1.400

1.206

More companies chose to list abroad in 2014 compared to last year

1.200

250

1.000

839

200

800

895

150

600 100

400

50 $ 170,2

$ 128,6

$ 171,1

$ 256.5

Capital raised (US$b)

10,7%

10,5% 10,0% 9,5%

200

9,0%

0

8,5%

2014*

2013

2012

2011

0

11,0%

Number of IPOs


300

% of cross-border listings

9,2%

8,0% 2013

2014*

Number of deals

Cross-border listing

80

384

260

262

243 202

$ 24,4

$ 46,3

$ 25,6

$ 74,9

$ 47,2

$ 72,6

$ 67,4

$ 69,3

Q3'14

Q4'14*

163

203

30

275

205

Q2'14*

201

Q1'14

192

Q4'13

40

Q3'13

293

Q2'13

50

336

333

325

306

Q1'13

60

$ 46,9

$ 65,4

$ 28,7

$ 29,2

$ 18,0

$ 43,8

$ 29,6

$ 37,2

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

10

Q2'11

20

Q1'11


70

0


450 400 350 300 250 200 150 100 50 0

Number of deals

*Data for Q4’14* and 2014 *is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time.

Page 10


Number of IPOs

Quarterly IPO activity (Q1’11-Q4’14*)

Exchange analysis — summary Americas exchanges dominated global IPO activity in 2014* in both deal volume and capital raised.

Regional share by capital raised (US$b) 2013

46%

34%

Americas

20% US

2014*

39%

Q4'13

38%

Q4'14*

27%

Americas

32% 37% 49%

Asia-Pacific

Asia-Pacific

EMEIA

29% 25% 24%

Canada

95,2 3,6

Mexico

1,3

Brazil

0,2

Jamaica

0,0

UK

23,6

Greater China

Spain

7,2

Australia

Saudi Arabia

6,7

Japan

France

6,1

South Korea

Netherlands

5,2

Thailand

41,7 16,0 11,4 4,0 2,5

EMEIA

Regional share by number of IPOs

US

2013

31%

42%

Canada 2014*

26%

Q4'13

26%

Q4'14*

  

21%

45% 49% 59%

288

UK

112

Greater China

233

27% 29% 25%

12

India

43

Japan

83 75

Mexico

3

Sweden

28

Australia

Jamaica

2

France

24

South Korea

42

Brazil

1

Italy

23

Thailand

35

20%

US exchanges led in terms of total proceeds raised (US$95.2b); Greater China (US$41.7b) and the UK (US$23.6b) ranked second and third, respectively. There were 45 deals with capital raised above US$1b. 17 of those deals listed on the US exchanges while seven listed on Hong Kong stock exchange and five IPOs listed on Euronext. US exchanges (288 deals) led globally in terms of deal number, followed by Greater China (233 deals) and the UK (112 deals), which ranked second and third, respectively.

1Greater China exchanges includes Mainland China exchanges (115 deals raised US$11.0b), Hong Kong exchange (104 deals raised US$30.2b) and Taiwan exchange (14 deals raised US$0.5b). Based on the listed company exchange. *Data for Q4’14 and 2014 is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time.

Page 11


Rapid-growth markets and developed markets IPO activity Volume is 28.3% higher and proceeds are up by 60.2%, while average deal size increased by 24.9% in 2014* compared with 2013 for rapid-growth markets. Quarterly IPO activity in rapid-growth markets 900

200

$17

$19

$9

$18

$16

50 10 $17

$29

$11

$10

$9

$26

$14

$18

$16

$27

$16

$46

$31

$57

$26

$37 0


Please see the Appendix for the definition of rapid growth markets. Based on the listed company domicile.



Q4'14*

Q3'14

Q2'14

0

Number of IPOs

100

50


Page 12

Q4'14*

Q3'14

Q2'14

Q1'14

Q4'13

Q1'11

Q3'13 99

79

Q1'14

2014*

2013

2012

2011

20

$151

0

89

Q4'13

$105

78

Q3'12

$67

87

Q2'12

$67

0

94

84

Q1'12

100

30

200

150

121

115

100

Q4'11

200

20

$32

174 129

125

40

Q3'11

300

40

$41

161

50

Q2'11

400

60

$15

250

Q1'11

80

$17

60


500

390 317

$29

216

Number of IPOs


100

454

$9

70

700 600

120

$19

Quarterly IPO activity in developed markets

Annual IPO activity in developed markets 140

$9



640

$19

0

2014*

2013

2012

2011

$36

0

0

160

150

117

100

Q3'13

$105

200

50 $30

Q2'13

$66

103

162

10

Q2'13

$62

15

Q1'13

$103

0

84 90

5

100

154 133

101

Q1'13

20

142

125

20

Q4'12

300

164

Q4'12

40

154

Q3'12

400

173

25

Q2'12

500

60

30

Q1'12

441

600

199

Q4'11

566

522

250

222

35

Q3'11

80


700

300 259

40

800

100

Number of IPOs


120

45

Q2'11

853

Number of IPOs

Annual IPO activity in rapid-growth markets

Industry analysis Most industries had more IPOs in 2014* compared with 2013; technology sector led global activity in 2014* by proceeds, while health care led by deal number. Capital raised (US$b) 2014*

Number of IPOs

2013

2014*

2013

50,2

Technology

167

Technology

9,9

115

39,9

Financials

28,6

88

Financials

92

30,2

Energy

22,0 30,1 27,0

Real estate

21,8

Health care

12,4 19,9 18,9

Industrials Retail

102

Energy

Consumer products and services

83

Real estate

100 193

Health care

100 142

Industrials

117

14,0 11,5

Materials

Media and entertainment

11,4 12,2

Media and entertainment

9,4 10,3

110 70 100 69 63

2013

2014

85.8

300.6

311.3

453.9

310.0

296.3

269.7

362.4

124.3

112.7

161.6

140.0

122.7

259.3

163.7

127.3

98.9

116.2

297.3

181.2

206.5

124.2

327.7

73.2

41 76

Consumer staples 50

1,3 4,9

53

Consumer products and services

11,6 6,8

Consumer staples

64

Retail

Materials

Telecommunications

71

16,6 6,5

Average deal size (US$m)

Telecommunications

18 15


Page 13


Stock exchange analysis US exchanges continued to be the hottest market place for global IPOs.

2014* New York (NYSE)

10,4 7,2

All other exchanges

Number of IPOs

172

New York (NYSE)

76

Australia (ASX)

75

London (AIM)

72

5,6

Australia (ASX)

5,4 46,4

117

NASDAQ

109

Hong Kong (HKEx)

87

Shenzhen (SZSE and Chinext)

Thailand (SET)

New York (NYSE)

116

Hong Kong (HKEx)

8,4

All other exchanges

65,9

NASDAQ

9,3

Sao Paulo (BM&F BOVESPA)

12,4

Tokyo (TSE)

12,9

Tokyo (TSE)

16,0

Euronext

15,8

London (LSE)

19,4

Australia (ASX)

21,4

NASDAQ

21,7

London (LSE)

45,9

Hong Kong (HKEx)

30,0

NASDAQ

Bolsa de Madrid

New York (NYSE)

73,4

Hong Kong (HKEx)

2013


76

London (AIM)

54

Australia (ASX)

52

KOSDAQ

36

Bombay SME

33

Tokyo MOTHERS

44

Tokyo MOTHERS

29

London (LSE)

40

Indonesia (IDX)

29

All other exchanges

524

All other exchanges

360

Data based on domicile of the exchange, regardless of the listed company domicile. Euronext includes Euronext (Amsterdam), Euronext (Paris) and Lisbon; NASDAQ OMX includes Copenhagen and Stockholm; and Shenzhen includes Shenzhen (SZSE) and Shenzhen (ChiNext). *Data for Q4’14* and 2014 *is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time.

Page 14



Content

1


2


Page 15

Slides 4-8 10-14


3


16-19

4

Appendices

21-30


Global PE IPO activity trends PE-backed IPOs see record year in 2014. Annual global PE-backed IPOs by region (capital raised) Americas

Asia-Pacific

Annual global PE-backed IPOs by region (number of deals) Americas

EMEA*

$120

EMEA*

200

$32

$80 $16 $60 $17

$21 $40

$20

$20

$1 $1 $6

$0

$4 $1 $7

$8 $8

$14 $3

$7

$10 $9

$16

$2 $23 $21 $1 $15 $21 $7

$3 $4 $3

$6

$3 $6

10 0

$6

30 $7

20

25

$4

$5

33

35

28

100 9

13 10

6 12

37

31

0



40

51

80

96

99

92

4 37 10

4 21

86

13 42

6 36

62

69

49

45

103

99

31

Number of deals 100

81

80 41

41

44

60 40

$8 $14 $8 $28 $17 $39 $41 $13

20 0





After several years of challenging exit environments, PE is now availing itself of a dramatically different market. Strong investor sentiment in the public equities markets and high valuations are leading to the best market for PE IPOs on record. PE-backed IPOs have reached US$110.5b, aided by the US$25.0b launch of Chinese e-commerce portal Alibaba Group Holding Ltd. This represents an increase of nearly 90% by value versus last year, itself a record year for PE IPOs. PE firms have taken 207 companies public in 2014, a 12% increase by value. Indeed, sponsored deals have been a key driver of the strong market for new IPOs. PE-backed deals have accounted for 17% of all IPOs listing on the world’s exchanges in 2014, and 43% of aggregate value.

*EMEA refers to Europe, Middle East and African exchanges. India is included within Asia-Pacific.

Page 16

19 66

30

6 29

Number of deals

20

45 35

40

Key insights

72

30

33

56

150

50

$2 $1 $30 $4 $35 $6 $15 $10 $16

50 40

60

$62

Quarterly PE-backed IPO activity (2012-2014 YTD) Capital raised (US$b)

63

58 Number of deals


$100


Asia-Pacific

250


Global PE exit trends IPOs remain strong; strategics step up as bidders for PE assets. IPOs as % of PE exits

Annual global PE exits by deal volume (2004-Q4’14)

17.6%

2014YTD

654

2013

632

312

207 16.6%

2012

300

598

2011

320

644

2010 359

2008

249

156

83 56

433

2007

117

199

51

626

383

216

2014YTD

2012

11.0%

2011

16.5%

2010

11.2%

2009

7.5%

2008

17.6%

2007

2006

545

335

197

18.3%

2006

2005

562

318

180

16.9%

2005

21.0%

2004

2004

335 0

200

227 400

149 600

Strategic sales

800

1.000

Secondary sales

1.200

1.400

$34.7

$277,3

2013

10.7%

110

301

543

2009

185

IPOs as % of PE exits

Annual global PE exits by deal value (US$m) (2004-Q4’14)

9.2% 14.2%

$53,5 $38,8

$182,1

13.8%

$65,9 $35,5

$155,1 $12.8 $51,9 $16,8

20.2%

$28.5 $9,9

$111,5

6.6%

$91,9

$89,5 $143,3

16.1%

$57,7

$157,3

$144,5

$0

21.1%

$69,9 $22,0

$148,5

$74,9

$58,3

$60,1

$158,0

24.6%

$110,5

21.6%

$50,0 $68,1

15.4%

$38,4

18.9%

$60,3 $31,6 $100

$200

$300

$400

$500

IPOs Strategic sales

Secondary sales

IPOs

Key insights    

PE firm are now laser-focused on exit opportunities for their portfolio companies. Thus far in 2014, exits have outpaced new acquisitions by a ratio of nearly 2:1. As a result, PE is rapidly descending from the “danger zone,” in which it has spent the last several years, when the rate of exits was insufficient to achieve liquidity for the bulk of the portfolio in a time period consistent with the standard PE model. IPOs have played a significant role, accounting for 18% of the number of exits, and nearly 25% of total value, which is high relative to historical averages. Trade buyers have become more active over the last several quarters, setting new records for both volume and value. With strong equities markets and increased visibility, strategics are more comfortable bidding aggressively for PE assets.

“Strategic sales” are sales to corporations (i.e., M&A) while “secondary sales” are sales to other PE firms. *2014YTD shows IPOs that have been priced by 30 November, or expected through 31 December.

Page 17


PE exit trends by region Americas and EMEA see significant increase in exit activity. IPOs as % of PE exits

Americas PE exits by deal volume (2004-Q4'14) 2014YTD 2013

27 31

2009

95

2008

114

77 10

2007

2004

92

160

201

2005

86

114

231

2006

62

123

219

2010

69

174

248

2011

103

136

232

2012

99

163

283

15.4%

2011

73,4

20,0%

2010

20.2%

2009

5.0%

2008

59,1

20.3%

2007

59,8

24.4%

2006

23.7%

2005

26.4%

2004

80

103 200

2013

400

600

Secondary sales

140

2011

193

2007

5.3%

1.1%

195 172

338 118

187

7.2%

2013

2.7%

56

9.9%

40

200

Strategic sales

Secondary sales

600

27.8% 4.2% 21,3

25.4%

27,0

31,0

800

14.3%

23,4 21,2

17.0%

15,3

19.1% 100

150

200

Secondary sales

250

IPOs IPOs as % of PE exits

2012

21,4

57,8

2011

34,5

56,1

2009

2.8%

21,8

46,4

2.6%

3,2

4.4%

33,9

IPOs

28,9

11.9% 15.9%

14,4

13.5%

8,2

50

Strategic sales


20,9

20,1

65,6 40,6

51,7

0

10.1%

82,9

40,9

2004

2.8%

10,2

71,9

2005

3,1

$8.9 0,8

20,9

2008

18.5%

2,3 31,9

76,5

2010

19.6%

16,8

29,8

44,0

31,8

$9.5

107,4

*EMEA refers to Europe, Middle East and African exchanges. India is included within Asia-Pacific. “Strategic sales” are sales to corporations (i.e., M&A) while “secondary sales” are sales to other PE firms. *2014YTD shows IPOs that have been priced by 30 November, or expected through 31 December.

Page 18

25,2

11.6% 400

12.4%

2,8

50

2006 10.9%

25.4%

10,1

76,3

9.8%

60

11.2%

16,2

68,0

33,3

21.8%

15,3

29,7

$4.1

43,4

26.4%

14,4 29,8

$2.5

2007

58

207

294

2005

2014YTD

1.6%

326

2006

13

110 4

261

23,7

62,3

35,5

EMEA PE exits by deal value (US$m) (2004-Q4’14)

12.9%

1.6%

19

118 50 4

223

44,4

84,1

0


33

157

303

28,3

Strategic sales

6

126

245

$24.6

137,3 98,9

IPOs

63

145

282

0

76,9

96

285

2004

2012

99

2014YTD

2008

14.1%

126

EMEA PE exits by deal volume (2004-Q4'14)

2009

2013

140

Strategic sales

2010

2014YTD

21.8%

181 119

2012

18.1%

169

0


Americas PE exits by deal value (US$m) (2004-Q4’14)

11.7% 100

Secondary sales

150

200

IPOs

PE exit trends by region US value up dramatically due to Alibaba; EMEA sees big jump in number of deals; and Asia-Pacific continues to work through China backlog. IPOs as % of PE exits

Asia-Pacific PE exits by deal volume (2004-Q4'14) 86

2014YTD

9

20

122

2011 2010 2009

17

71

2008

6

58

2007

12 99

2006 2005

14

55

2004

29

6

6

22.4%

36

22.7%

42

51

2009

37

34.6%

2008

36.5%

2007

32.3%

2006

31.5%

2005

15,3

46.2%

2004

7,7 0,4

40

30 100

Strategic sales

4,0

2010

Secondary sales

200

15,0 7,3 6,0

25.8% 19.7%

4,4 7,2

1,7

35.3%

9,1

40.2% 30.3%

3,9

12,8

6,3

15,6

44.8%

6,5

51.1%

0,5

2,8

15.1%

8,1 10

Strategic sales

IPOs

12.9%

5,9

1,4 5,8 2,6

5,2 1,0

0

40.0%

16,4

6,0

32,3

2011

21.4%

66

1,5

2,0

13,7

2012

21

28

0

15,4

2013

32.3%

16

70

26.3%

49

21

89

27,7

2014YTD

19

105

2012

32.1%

45

118

2013


Asia-Pacific PE exits by deal value (US$m) (2004-Q4'14)

50.0% 20

30

Secondary sales

40

50

IPOs

Key insights ► ►

►

►

Continued strong macro conditions and improved sentiment is sending public market investors further up the risk spectrum in search of returns, leading to a strong year for PE IPOs in the Americas. While volume was essentially flat, the value of deals increased over 75%, in part on the strength of Alibaba. Asia-Pacific continues to gain strength from stronger equities markets in the second half of 2014, as well as the reopening of the IPO window in Mainland China. With the window effectively closed throughout 2013, firms had to decide whether to wait out the shutdown or pursue alternative exits such as trade sales and secondary buyouts. China was the source of the largest PE-backed deal in history, when the long-anticipated Alibaba IPO went effective at US$25.0b. Indeed, it wasn’t just the largest PE-backed IPO of all time; it was the largest IPO ever, surpassing the US$22.1b offering by the Agricultural Bank of China in 2010. The company, which was backed by a range of sponsors including Silver Lake, General Atlantic, China Investment Corporation, CITIC Capital Management, The Canada Pension Plan Investment Board and others, highlights some key trends in the PE asset class: 1) the increasingly important role that growth capital is playing; and 2) it underscores the importance and the potential of emerging markets such as China to the asset class. European strength continues as sponsors work out of pre-recession era deals. PE firms took 63 companies public during the year, up 90% from 2013.

“Strategic sales” are sales to corporations (i.e., M&A) while “secondary sales” are sales to other PE firms. *2014YTD shows IPOs that have been priced by 30 November, and deals expected through 31 December.

Page 19



Content

1


2


Page 20

Slides 4-8 10-14


3


16-19

4

Appendices

21-30


Asia-Pacific1 IPO activity trends IPO activity rebounded in 2014*, both in terms of value and volume, when compared with levels seen in 2013. Asia-Pacific IPO activity (2007-2014*) 760

746 675


180

700

160

546

140 437

120 350

100

600 500

376

347

400

80

300

60

200

40 20

$125

$32

$72

$179

Sectors

800

$88

$56

$59

$81

Number of IPOs

200

2014* Asia-Pacific IPOs by sector

100 0

2014*

2013

2012

2011

2010

2009

2008

2007

0


Number of deals

Industrials Technology Consumer products and services Materials Consumer staples Real estate Energy Health care Retail Media and entertainment Financials Telecommunications Grand Total

81,386.0

2014* IPOs

% of IPOs priced within or above initial pricing range

98%

60

50

50

40

40 30

27

24

30

20 10 $65

$14

$22

$54

4 $1

7

8

$12

$11

8 $11

20

2014*

2013

2012

2011

2010

2009

2008

2007

First-day average return

+19.9%

% change of offer price vs. 3 Dec.

+48.5%

Median post-IPO market cap

US$182.9m

Hang Seng Index - 2014 YTD returns Shanghai SE Composite Index - 2014 YTD returns

+31.4%

Nikkei 225 - 2014 YTD returns

+11.4%

Capital raised (US$b) 1Based in IPO activity on Asia-Pacific stock exchanges.2Pricing and returns are based on 474 IPOs on Asia-Pacific exchanges that have started trading by 3 December. *Data for Q4’14* and 2014 *is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time.

Page 21

+0.5%

10 0

0

Number of IPOs

70

60


9,223.30 10,579.60 5,708.80 4,525.30 7,331.90 14,390.90 10,083.60 5,475.20 3,272.00 3,090.20 7,443.80 261.3

546

Measures2

80

73

69

94 90 68 54 47 39 35 34 30 26 23 6

IPO pricing and performance: 2014* IPOs

Former state-owned enterprise (SOE) IPO activity in AsiaPacific (2007-2014*) 70

Proceeds (US$m)


EMEIA1 IPO activity trends EMEIA IPO activity on both the main markets and junior markets improved significantly in 2014*. Annual EMEIA IPO activity (2007-2014*)

2014* EMEIA IPOs by sector Sectors

140

900

823

800 700

100

600

80 354

310

60

353

353

400 209

40

240

300 200

112 20 $126

$36

$14

500

$48

$33

$16

$34

Number of IPOs


120

100

$75

0 2014*

2013

2012

2011

2010

2009

2008

2007

0

Proceeds (US$m)

Health care Industrials Financials Materials Energy Real estate Media and entertainment Technology

46 35 34 34 33 31 29 28

6,229.30 8,467.50 16,528.20 3,197.50 3,810.00 9,453.90 6,965.80 3,419.20

Consumer staples Consumer products and services Retail Telecommunications

26 25 23 9

1,855.70 4,934.30 9,479.00 563

353

74,903.3

Grand Total


Number of deals


EMEIA financial sponsor-backed IPO activity (2007-2014*)

Measures2 101

% of IPOs priced within or above initial pricing range

30

75 80

25

60

20 37

15 10 5

97%

100

15 $22

$3

8 $2

38 30

40 14

$11

$4

$3

20 $17

$36 2014*

2013

2012

2011

2010

2009

2008

0 2007

0

Number of IPOs


35

2014 YTD* IPOs

120

40

EMEIA main markets’ IPOs – first-day average return

+12.5%

EMEIA main markets’ IPO – % change of offer price vs. 3 Dec.

+17.3%

EMEIA main markets’ IPO – median post-IPO market cap

US$276.2m

FTSE 100 – 2014 YTD returns

-0.5%

DAX – 2014 YTD returns

+6.1%

CAC – 2014 YTD returns

+2.2%

Capital raised (US$b) Based in IPO activity on EMEIA stock exchanges 2Pricing and returns are based on 187 IPOs on the main market and 148 IPOs on junior markets that have started trading by 3 December. See Appendix for definitions of main market and junior market. *Data for Q4’14* and 2014 *is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time.

1

Page 22


US1 IPO activity trends Financial sponsor-backed activity picks up pace as PEs and VCs seize exit opportunities. Annual US IPO activity (2007-2014*)

2014* US IPOs by sector Sectors

100

350

226

214

60

250 200

162

50

124

40 30

133

150 100

65

20

35 $50

$27

Number of IPOs


300

80

10

50 $27

$43

$40

$47

$62

0 2014*

2013

2012

2011

2010

2009

2008

2007


Grand Total

US financial sponsor-backed IPO activity (2007-2014*)

124

140 108

40

120 80

87

100 80

30

10

60

36

20 $24

13 $3

40 $10

$17

$30

$32

$41

$68

20 0


2014*

2013

2012

2011

2010

2009

2008

2007

0

10 6 2 2

4,975.30 1,303.40 249.8 465.8

288

95,152.5

% of IPOs priced within or above initial filing range

160

Number of IPOs


144

9,883.30 35,998.70 15,710.20 13,269.30 3,363.20 2,186.70 3,901.10 3,845.70

Measures2

180

70

111 47 29 28 17 13 12 11


181 200

80

50

Health care Technology Financials Energy Consumer products and services Industrials Materials Retail Real estate Media and entertainment Consumer staples Telecommunications

$95

0

60

Proceeds (US$m)

288

90 70

Number of deals

2014 YTD* IPOs 61%

First day average return

+19.3%

% change of offer price vs. 3 Dec.

+27.8%

Median post-IPO market cap

US$390.0m

S&P 500 - 2014 YTD returns

+12.2%

DJIA - 2014 YTD returns

+8.1%

CBOE Volatility Index® (VIX®) - change from 1 Jan.

-9.1%

1Based in IPO activity on US stock exchanges: NYSE, NASDAQ and NYSE – AMEX 2Pricing and returns are based on 277 IPOs on NYSE and NASDAQ that have started trading by 3 December. *Data for Q4’14 and 2014 is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time.

Page 23


Pricing range 87% of global IPOs1 were priced within or above the initial filing range in 2014* compared with 91% in 2013. 79% of global IPOs in Q4’14* so far were priced within their initial filing range, 5% were priced above their initial filing range and 16% of IPOs were priced below their initial filing range.

288

282 313 296 474

2%

3%

5%

1%

92%

2%

3%

3%

306 384 293 260 203 243 192 201 163 205 202 325 262 333 275 336 4%

6%

5%

88%

88%

92%

5%

8%

6%

5%

83%

87%

4%

3% 9%

5%

8%

7%

82%

85%

9%

10%

8%

11%

5%

6%

8%

82%

78%

12%

14%

16% Q4'14*

84 141

Q3'14

52

Q2'14

84

Q1'14

1%

171

Q4'13

227 276

Q3'13

Total number of IPOs

19%

82%

Number of deals

72% 62% 87%

88%

86%

84% 91%

52%

86%

85%

88%

90%

95%

90%

83%

85%

83%

90%

80%

85%

79%

74%

42% 32% 22%

Below 1Chart

In range

11%

12%

7%

6% Q2'13

8%

Q1'13

11%

Q4'12

9%

Q3'12

6%

Q2'12

6%

Q1'12

7%

Q4'11

7%

Q3'11

10%

Q2'11

Q4'08

Q3'08

Q2'08

Q1'08

2%

10%

Q1'11

11%

Q4'10

3%

Q3'10

7%

Q1'10

9%

Q4'09

16% Q3'09

14%

Q2'09

11%

Q1'09

12%

Q2'10

12%

Above

shows the number of open-price IPOs with deal value above US$50m that are priced above, below or within their initial filing range. For 3% of IPOs, this range is not applicable.

*Data for Q4’14 and 2014 is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time.

Page 24


Global IPO activity trends on main and junior markets Median values on main markets show increasing trend in EMEIA between 2011 and 2014*.

Main markets

Junior markets

Annual median deal size by region (US$m)

Annual median deal size by region (US$m)

174

39 138

132

105 98 19

72

67

15

51

28 2 2013

2011

2014*

Americas

EMEIA

Asia-Pacific

8

9

6

7

9

7

4

5

6

11

33

8

11

51


13 11

8 8 Q2'14

Q4'14*

Q3'14

3

9 Q1'14

10 13

8

*Data for Q4’14 and 2014 is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time. Please see the Appendix for the definition of main markets and junior markets.

Page 25

9

1

10 Q2'13

3 2

8 1 3

1 2 Q1'13

Q3'12

4 10

4 1

Q2'12

Q4'12

12 1 1

Q1'12

1

1 1

Q4'11

12 1 1

Q2'11

2

1 1 Q1'11

Q4'14*

Q3'14

Q2'14

Q1'14

Q4'13

Q3'13

8

47

43

50

144 128

15 Q2'13

6

18 13

Global median

13

92

57

190

112 73 93

72 69

122

118 83

120 50 42 Q1'13

Q4'12

Q3'12

Q4'11

Q3'11

2014*

79

95 129 91 109 68

154 79 31

74 8

17 Q2'12

66

103 49 24 8

18

Q1'12

64

62

66 38 Q2'11

Q1'11

2013

65

96

2012

97

81

57 62

92

123

145

167

155

137 88 18

85

168

71

79

70

115

67

70

64

215

82 203

80

7

3

1

1

Quarterly median deal size by region (US$m)

Quarterly median deal size by region (US$m) Global median

1

3 1

2012

1

2011

1

Q3'11

21

15

9

Q4'13

57

Q3'13

67

Appendix: key global IPO statistics (US$) 2010

2011

2012

2013

2014*

Number of deals

1,365

1,243 (▼ 9%1)

839 (▼ 33%2)

895 (▲7%3)

1206 (▲35%4)

Capital raised

$284.6b

$170.2b (▼ 40%1)

$128.6b (▼ 24%2)

$171.1b (▲33%3)

$256.5b (▲50%4)

Average deal size

$208.5m

$137.0m

$153.3m

$191.1m

$212.7m

PE-backed IPOs

155 deals, $35.9b

119 deals, $38.3b

107 deals, $19.4b

185 deals, $58.3b

209 deals, $110.6b

VC-backed IPOs

129 deals, $13.7b

143 deals, $17.3b

92 deals, $23.2b

129 deals, $14.1b

156 deals, $21.9b

Top 5 sectors (number of deals)

Materials (301) Industrials (244) Technology (177) Consumer staples (110) Health care (106)

Materials (271) Industrials (215) Technology (146) Energy (101) Consumer products 5(98)

Materials (143) Industrials (135) Technology (115) Energy (63) Consumer staples (58)

Industrials (117) Technology (115) Real estate (100) Health care (100) Financials (92)

Health care (193) Technology (167) Industrials (142) Consumer products (110) Energy (102)

Top 5 sectors (capital raised)

Financials ($79.9b) Industrials ($58.2b) Materials ($39.5b) Energy ($22.0b) Technology ($21.0b)

Materials ($29.2b) Industrials ($27.0b) Energy ($20.8b) Financials ($15.9b) Technology ($15.5b)

Technology ($23.1b) Industrials ($20.2b) Financial ($19.4b) Real estate ($12.5b) Energy ($12.1b)

Financials ($28.6b) Real estate ($27.0b) Energy ($22.0b) Industrials ($18.9b) Health care ($12.4b)

Technology ($50.2b) Financials ($39.9b) Energy ($30.2b) Real estate ($30.1b) Health care ($21.8b)

Top 5 exchanges (number of deals)

Shenzhen – SME (205) Shenzhen – ChiNext (116) Australian (93) Hong Kong (87) New York (82)

Warsaw – New Connect (136) Shenzhen – ChiNext (128) Shenzhen – SME (115) Australian (101) Hong Kong (68)

New York (78) Shenzhen – ChiNext (74) Warsaw – New Connect (62) Shenzhen (55) NASDAQ (54)

New York (116) NASDAQ (109) Hong Kong (76) London AIM (54) Australia (52)

NASDAQ (172) New York (116) Hong Kong (87) Australian (75) London AIM (72)

Top 5 exchanges (capital raised)

Hong Kong ($67.9b) New York ($34.7b) Shenzhen ($30.2b) Shanghai ($17.8b) Tokyo ($14.3b)

New York ($30.5b) Hong Kong ($25.3b) Shenzhen ($15.7b) Shanghai ($15.1b) London ($13.9b)

New York ($24.0b) NASDAQ ($22.6b) Tokyo ($12.2b) Hong Kong ($11.5b) Bursa Malaysia ($7.6b)

New York ($45.8b) Hong Kong ($21.4b) NASDAQ ($15.8b) London ($12.9b) Tokyo ($9.3b)

New York ($73.4b) Hong Kong ($30.0b) NASDAQ ($21.7b) London ($19.4b) Australian ($16.0b)

1Percentage change

from 2010 to 2011 from 2011 to 2012 from 2012 to 2013 Percentage change from 2013 to 2014

2Percentage change 3Percentage change

Page 26

5Consumer products includes consumer services Please see Appendix for the list of stock exchanges.

*Data for 2014 is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time.


Appendix: 2014* top 20 IPOs by capital raised Issue month

Issuer name

September Alibaba Group Holding Ltd.

Domicile

Sector

Issuer business description

Capital raised Exchange(s) (US$m)

China

Technology

Investment holding company with subsidiaries engaged in providing services through the internet.

New York 25,032.3 (NYSE)

November

National Commercial Bank – NCB

Saudi Arabia

Financials

Commercial bank.

5,996.8

Saudi (Tadawul)

November

Medibank Private Ltd

Australia

Financials

National provider of health insurance services.

4,923.5

Australia (ASX)

December

Dalian Wanda Commercial Properties Co. Ltd.**

China

Real estate

Manages commercial property projects.

3,900.0

Hong Kong (HKEx)

3,461.5

New York (NYSE)

September Citizens Financial Group Inc.

United States Financials

Commercial bank holding company.

December

CGN Power Co Ltd

China

Energy

Holding company with interests in nuclear Hong Kong 3,163.7 power production. (HKEx)

January

HK Electric Investments / HK Electric Investments Ltd

Hong Kong (SAR)

Energy

March

Japan Display Inc.

Japan

Technology

July

Synchrony Financial

United States Financials

Financial services company providing private label credit cards in the US.

2,955.4

New York (NYSE)

November

Paramount Group Inc.

United States Real estate

Real estate investment trusts.

2,636.4

New York (NYSE)

Share stapled business trust with a focus Hong Kong on the power utility industry in Hong 3,111.0 (HKEx) Kong. Manufacturer of small- and medium-sized electronic displays for the consumer, 3,085.0 Tokyo (TSE) industrial, and medical industries.

Type of IPO

PE-backed

Former SOE

Former SOE

*Data for Q4’14* and 2014 *is based on priced IPOs as of 4 December and expected IPOs by end of December; data is up to 4 December 2014, 9:00 a.m. India time. **As of 8 December, Dalian Wanda Commercial Properties Co.,Ltd.is expected to raise US$3.9b on 19th December , making this the fourth largest IPOs by capital raised in 2014 when it is completed. Whereas the deal’s expected IPO proceeds was US$6.0b as of 4 December.

Page 27


Appendix: 2014* top 20 IPOs by capital raised Issue month

Issuer name

Domicile

Sector

Issuer business description

Capital raised (US$m)

Financials

Provider of automotive and mortgage finance.

2,556.1

New York (NYSE)

PE backed and former SOE

Provider of life and non-life insurance products and investment management services.

2,419.2

Euronext (Amsterdam)

PE backed

Hong Kong (HKEx)

PE backed

Exchange(s)

Type of IPO

April

Ally Financial Inc

United States

July

NN Group NV

Netherlands Financials

August

WH Group Ltd

China

Consumer staples

Engaged in meat product processing and packing, sausages manufacturing

2,362.0

June

AA plc

United Kingdom

Industrials

Provider of roadside assistance, insurance broking and underwriting services, as well as driving services.

2,356.0 London (LSE)

July

Healthscope Ltd

Australia

Health care

Healthcare group. Operator of private hospitals and pathology testing centres..

2,116.9 Australia (ASX) PE backed

May

JD.com Inc

China

Retail

Online shopping website.

2,047.0 NASDAQ

PE and VC backed

January

Santander Consumer USA Holdings Inc

United States

Financials

Consumer finance company focused on vehicle finance and unsecured consumer lending products.

2,045.8

New York (NYSE)

PE backed

January

Altice SA

France

Media and Multinational cable and telecommunications Euronext 2,042.8 entertainment company. (Amsterdam)

June

B&M European Value Retail United SA Kingdom

Retail

General merchandise discount retailer.

October

Recruit Holdings Co Ltd

Technology

Publishes job placement periodicals and other periodicals on residence, travel, bridal, 1,967.7 Tokyo (TSE) and automobile.

Japan


Page 28

1,976.1 London (LSE)

Total capital raised by top 20 IPOs in 2014* Total global capital raised in 2014*: % of top 20:


PE backed

PE backed VC backed

US$80.1b US$256.5b 31.3%

Appendix: definitions ►

► ►

►

The data presented in the 2014 Global IPO update and press releases is from Dealogic and EY. 2014 is based on priced IPOs as of 4 December and expected IPOs by end of December. Data is up to 4 December, 9:00 a.m. India time. All data contained in this document is sourced to Dealogic and EY unless otherwise noted. For the purposes of these reports and press releases, we focus only on IPOs of operating companies and define an IPO as a company's first offering of equity to the public. This report includes only those IPOs for which Dealogic and EY offer data regarding the issue date (the day the offer is priced and allocations are subsequently made), trading date (the date on which the security first trades) and proceeds (funds raised, including any over-allotment sold). Postponed IPOs, or those which have not yet been priced, are therefore excluded. Over-the-counter (OTC) listings are also excluded. In an attempt to exclude non-operating company IPOs such as trusts, funds and special purpose acquisition companies (SPACs), companies with the following Standard Industrial Classification (SIC) codes are excluded: ► ► ► ► ► ► ►

► ► ► ►

6091: Financial companies that conduct trust, fiduciary and custody activities 6371: Asset management companies such as health and welfare funds, pension funds and their third-party administration as well as other financial vehicles 6722: Companies that are open-end investment funds 6726: Companies that are other financial vehicles 6732: Companies that are grant-making foundations 6733: Asset management companies that deal with trusts, estates and agency accounts 6799: Special purpose acquisition companies (SPACs)

We also applied the above SIC exclusion criteria for the follow-on activity analysis. In our analysis, unless stated otherwise, IPOs are attributed to the domicile of the company undertaking an IPO. The primary exchange on which they are listed is as defined by Dealogic and EY research. A foreign listing is where the stock exchange nation of the company is different from the company's domicile (i.e.,, issuer's nation). For IPO listings on HKEx; SSE; SZE; Japan’s Tokyo Stock Exchange (TSE); TSE MOTHERS; Korea's KRX and KOSDAQ; Thailand's SET and MAI; Indonesia IDX; WSE; NewConnect; TSX and TSX-V exchanges, we use their first trading date in place of issue date.

Page 29


Appendix: definitions ►

Geographic definitions: ► ► ► ► ►

► ► ►

►

►

► ►

►

Asia includes Bangladesh, Greater China, Indonesia, Japan, Laos, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand and Vietnam Greater China includes mainland China, Hong Kong, Macau and Taiwan Asia-Pacific includes Asia (as stated above) plus Australia, New Zealand, Fuji and Papua New Guinea Central and South America includes Argentina, Bermuda, Brazil, Chile, Colombia, Ecuador, Jamaica, Mexico, Peru and Puerto Rico EMEIA includes Armenia, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Ireland, Isle of Man, Italy, Kazakhstan, Luxembourg, Lithuania, Netherlands, Norway, Pakistan, Poland, Portugal, Russian Federation, Spain, Sweden, Switzerland, Turkey, Ukraine and United Kingdom plus the Middle East and Africa countries listed below Middle East includes Bahrain, Iran, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen Africa includes Algeria, Botswana, Egypt, Ghana, Kenya, Madagascar, Malawi, Morocco, Namibia, Rwanda, South Africa, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe North America consists of the United States and Canada

Emerging markets or rapid-growth markets include issuers from Argentina, Armenia, Bangladesh, Bolivia, Brazil, Bulgaria, Chile, Colombia, Croatia, Cyprus, Egypt, Ethiopia, Greater China, Hungary, India, Indonesia, Ireland, Israel, Kenya, Kuwait, Kazakhstan, Laos, Lithuania, Malaysia, Mauritius, Mexico, Namibia, Pakistan, Peru, Philippines, Poland, Qatar, Russian Federation, Saudi Arabia, Sierra Leone, Singapore, Slovenia, South Africa, South Korea, Sri Lanka, Tanzania, Thailand, Tunisia, Turkey, Ukraine, United Arab Emirates, Vietnam, Zambia. Developed markets include issuers from Australia, Austria, Belgium, Bermuda, Canada, Denmark, Finland, France, Germany, Greece, Guernsey, Isle of Man, Italy, Japan, Jersey, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom and United States. State-owned enterprise (SOE) privatizations refers to former state-owned entities that have completed their IPO listings to become public companies. Many stock exchanges have set up main markets and junior markets. Main markets are where medium and large IPOs (by capital raised) are usually listed and traded. Junior markets are where small-cap companies or smaller IPOs are listed or traded. Stock exchanges without junior markets are classified as main markets. Junior markets include: ► ► ►

Americas: American, Canadian National Stock Exchange, Toronto Venture Exchange and Jamaica Asia-Pacific: Malaysia ACE Market, Bombay SME, Hong Kong Growth Enterprise Market, Japan JASDAQ, Korea KOSDAQ, Thailand Market for Alternative Investment, National SME, Shenzhen ChiNext, Singapore Catalist, Tokyo Stock Exchange MOTHERS Index. EMEA: Alternext, London Alternative Investment Market, Germany's Frankfurt Entry Standard, Spain's Mercado Alternativo Bursatil, NASDAQ OMX First North, Warsaw New Connect, Johannesburg Alternative Market

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Global IPO press release and Global IPO update slides – 2014 Date published: 8 December 2014 For PR inquiries, please contact: Will Brewster Associate Director, EY Global Media Relations +44 (0) 207 980 0812 [email protected] For information about EY’s IPO services and our IPO point of view, please contact: Jackie Kelley EY Global IPO Markets Leader +1 949 437 0237 [email protected] Produced by Global Markets — EY Knowledge: Anshul Singh, Market Performance, Global Markets – EY Knowledge +91 124 619 2943 [email protected] Contributors include: Akriti Kapoor, Harshit Takkar This report was requested by: Eva Chan, Manager – Global IPO Center, Strategic Growth Markets +44 (0) 207 980 0254 [email protected] Visit the EY Knowledge CHS for help accessing and using knowledge tools and services.

EY | Assurance | Tax | Transactions | Advisory 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 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. About EY's IPO services EY is a leader in helping to take companies 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 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 easyto-use source. www.ey.com/ipocenter © 2014 EYGM Limited. All Rights Reserved. EYG no. CY0836 ED None This material has been prepared for general information purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice.

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