global ipo watch - pwc · global ipo watch. q4 2018 3 the largest ipo of the year took place in...

A PwC IPO Centre publication

Global IPO WatchQ4 2018PwC provides independent guidance to companies in the process of going public and to already listed companies in assessing their position in the equity capital markets.

David [email protected]

Derek [email protected]

Kennedy [email protected]

Geoffrey [email protected]

Jan-Willem de Groot (author)[email protected]

Martin [email protected]

Ross [email protected]

Nadja [email protected]

Basis of preparationThe Global IPO Watch analyses IPO and FO trends on a quarterly basis, both at a global and regional level. It is based on data extracted from Dealogic, whereby only transactions with a minimum of $5 million money raised have been included. Transaction proceeds include the overallotment option (if exercised). The data excludes PIPO’s and transactions on Over-The-Counter exchanges. In case IPOs or FOs take place on two or more exchanges, the full amount of money raised is attributed to all exchanges. The same applies to countries and regions. This does not apply to two exchanges within the same country or two countries within the same region. Country indicates the company’s country of domicile. Industry classification is based on the FTSE Russell Industry Classification Benchmark. Index performance is based on pricing data extracted from Bloomberg.

PwC

IPO and FO highlights

Q4 2018Global IPO Watch3

The largest IPO of the year took place in Japan, as Japanese telco SoftBank raised $21.3bn. It is the 4th largest IPO in history and could become 2nd if the greenshoe is exercised

5German IPO proceeds were highest in EMEA following the jumbo IPOs of Siemens Healthineers, Knorr-Bremse and DWS

3

Cross-border IPO activity accounted for 29% of proceeds and 26% of the number of transactions in the US

1

Due to stricter regulatory oversight IPO proceeds in China fell by 42%, and the number of IPOs by 77%

10

The largest FO of the year was undertaken by the Agricultural Bank of China, as it raised $15.0bn on the Shanghai Stock Exchange

4

11 A strong year for Australian IPOs means the country has the fourth highest proceeds in Asia-Pacific

Mexico’s IPO market had its best year ever, as 24 IPOs raised $9.5bn

6

Kazakhstan successfully executed the first deal in their privatisation pipeline and launched the Astana International Financial Centre with the intention of making it a regional hub

9

When Dutch payments processing firm Adyen went public in June, the stock jumped 110% intraday above the offer price, giving the company a valuation of €15.5bn

Despite three Brazilian companies opting for a listing in the US in 2018, IPO proceeds in Brazil were third highest in the Americas

7

8

London has seen a pause in IPO activity in

2018 largely due to Brexit and high market

volatility, however it remained EMEA’s most

active market by IPO volumes

2

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Global money raised via IPOs and FOs


Global money raised via IPOs and FOs (10-year overview) Top countries 2018

As a result of a few jumbo IPOs, 2018 IPO proceeds outpaced those in recent years even as volatility returned on equity markets

Note: Top countries have been selected based on money raised in 2018. Source: Dealogic as of 31 December 2018

$841,8bn

$642,0bn

$479,9bn $509,3bn$588,2bn $613,5bn

$685,8bn$551,1bn

$620,4bn

$458,9bn

3.554 3.5622.902 2.508

3.046 3.178 3.323 3.186 3.5672.801

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$121,2bn

$299,1bn

$178,8bn$142,5bn

$195,6bn

$274,3bn

$206,9bn

$142,5bn

$209,1bn $221,6bn

502

1.2581.041

728 8651.167 1.185 1.013

1.5211.177

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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United States; 28%

Hong Kong; 15%

Japan; 12%China; 8%

Germany; 6%

Other; 31%

United States, 36%

China, 11%United Kingdom, 8%

Hong Kong, 7%

Australia, 5%

Other, 34%

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2016 2017 2018 Q4 2016 Q4 2017 Q4 2018IPO activity Number of IPOs 1,013 1,521 1,177 373 439 284

% sponsor-backed 9.7% 9.3% 7.6% 7.2% 9.8% 3.5%Money raised $142.5bn $209.1bn $221.6bn $54.5bn $67.7bn $56.1bn

% sponsor-backed 22.9% 22.7% 14.1% 19.8% 21.1% 5.4%

Advanced metrics Free float % 31.3% 31.9% 32.2% 30.1% 31.5% 31.3%Overallotment exercised (%)1 25.3% 25.2% 31.5% 19.6% 26.3% 24.5%% secondary shares 15.1% 14.6% 13.6% 13.2% 17.6% 11.6%

FO activityNumber of FOs 3,186 3,567 2,801 868 1,008 527Money raised $551.1bn $620.4bn $458.9bn $126.1bn $144.5bn $68.4bn

Overview of global IPO and FO activity


• In Q4 2018, 284 IPOs raised $56.1bn. This represents a decrease of 17% in terms of proceeds and a 35% drop in the number of deals compared to last year. For the year as a whole, IPO proceeds increased by 6% even as the number of transactions fell by 23%.

• Pricing was more volatile in 2018, as the share of transactions pricing within their initial pricing range dropped to a multi-year low.

• The post-IPO performance of 2018 IPOs is lower than in 2017 as equity markets fell and the share of historically outperforming Chinese IPOs dropped.

Global IPO and FO activity

IPO pricing dynamics Post-IPO performance (median) Global indices

The last few months of 2018 proved to be poor for equity markets due to political instability and higher interest rates in the US

1

2

1

2

3

3

2017 2018

1) Overallotment exercised (%) presents the percentage of IPOs in which the overallotment option has been exercised (either fully or partially). Note: IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’.

Source: Dealogic, Bloomberg as of 31 December 2018

75

100

125

150

175

Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

FTSE 100 Hang Seng S&P 500

16,3%

4,5%

17,7%

3,5%

20,0%

2,9%

24,4%

1,5%-2,3%-3,3%

1-Day 1-Week 1-Month 3-Month Current7% 6% 7%14% 14% 20%

51% 53% 47%

24% 22% 21%

3% 4% 5%

2016 2017 2018

Below range Bottom of range In range Top of range Above range

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Pricing date Issuer name Issuer country Sector Exchange Filing range Offer

price Deal Type Money raised

Secondary shares (%)

Performance1-day 1-month Current

4-Jul-18 Agricultural Bank of China Financials Shanghai SE N/A 3.97 FO - Cash Placing $15.0bn 0.0% -15.4% -11.1% -2.0%22-Mar-18 Tencent Technology HKEX 439.40 - 439.40 405.00 FO - Accelerated Bookbuild $9.8bn 100.0% 3.7% -1.2% -20.2%20-Jun-18 Bayer Health Care Deutsche Börse 81.00 - 81.00 81.00 FO - Rights Offer $7.0bn 0.0% 19.0% 13.6% -5.5%10-Apr-18 Hilton Worldwide Consumer Services NYSE 77.51 - 77.51 73.00 FO - Accelerated Bookbuild $4.8bn 100.0% 9.1% 13.4% 10.7%11-Sep-18 Yahoo Japan Technology Tokyo SE 353.00 - 360.00 354.00 FO - Accelerated Bookbuild $4.3bn 100.0% 2.5% N/A 15.5%5-Jun-18 Royal Bank of Scotland Financials LSE 2.81 - 2.81 2.71 FO - Accelerated Bookbuild $3.3bn 100.0% -1.9% -7.6% -7.8%8-May-18 Canadian Natural Resources Oil & Gas NYSE 35.11 - 35.11 34.10 FO - Bought Deal $3.3bn 100.0% 0.5% -0.6% -4.2%4-Jan-18 Sempra Energy Utilities NYSE 105.35 - 105.35 107.00 FO - Accelerated Bookbuild $2.9bn 0.0% 1.4% -1.3% 6.3%1-May-18 Centene Health Care NYSE 110.17 - 110.17 107.50 FO - Accelerated Bookbuild $2.9bn 0.0% 6.3% 9.4% 34.7%18-Apr-18 Renesas Electronics Technology Tokyo SE 987.00 - 987.00 1,083 FO - Fully Marketed $2.7bn 100.0% 3.4% -2.0% -34.4%

Leading transactions 2018


Top 10 largest IPOs 2018

SoftBank’s IPO was the largest of the year with proceeds of $21.3bn, and is potentially the second largest in history (if the overallotment option is exercised)

Top 10 largest FOs 2018


price Pricing Money raised

Free float



10-Dec-18 SoftBank Telecommunications Tokyo SE 1,500.00 - 1,500.00 1,500.00 In range $21.3bn 33.5% 100.0% -14.5% N/A -9.5%1-Aug-18 China Tower Technology HKEX 1.26 - 1.58 1.26 Bottom of range $7.5bn 27.1% 0.0% 0.0% -8.7% 17.5%29-Jun-18 Xiaomi Technology HKEX 17.00 - 22.00 17.00 Bottom of range $5.4bn 11.2% 34.2% -1.2% 0.8% -24.0%15-Mar-18 Siemens Healthineers Health Care Deutsche Börse 26.00 - 31.00 28.00 In range $5.2bn 15.0% 100.0% 7.9% 16.2% 30.5%10-Oct-18 Knorr-Bremse Consumer Goods Deutsche Börse 72.00 - 87.00 80.00 In range $4.4bn 29.8% 100.0% 2.1% 5.2% -1.7%23-May-18 Foxconn Industrial Internet Technology Shanghai SE N/A 13.77 N/A $4.3bn 10.0% 0.0% 44.0% 25.1% -15.8%13-Sep-18 Meituan Dianping Consumer Services HKEX 60.00 - 72.00 69.00 In range $4.2bn 8.7% 0.0% 5.3% -20.3% -36.4%9-May-18 AXA Equitable Financials NYSE 24.00 - 27.00 20.00 Below range $3.2bn 28.1% 100.0% 1.7% 5.3% -16.9%14-Sep-18 Fideicomiso CIB/3057 Financials Mexican SE 1,910.20 - 1,910.20 1,910.20 In range $3.0bn N/A 0.0% N/A N/A N/A23-Jan-18 PagSeguro Digital Industrials NYSE 17.50 - 20.50 21.50 Above range $2.6bn 38.0% 46.3% 35.8% 50.6% -12.9%

Note: IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’.Source: Dealogic, Bloomberg as of 31 December 2018

PwC

IPO and FO activity per region


Americas

Asia-Pacific was the most active region for IPOs, and in terms of FO activity, all three regions recorded a fall in 2018, both in terms of proceeds and deal numbers

EMEA Asia-Pacific

$109,5bn

$50,9bn$30,8bn

$67,4bn $75,3bn

346248

149270 295

2014 2015 2016 2017 2018

$230,3bn $243,3bn$219,7bn $214,8bn

$188,2bn

1.144 1.054 1.0721.238

1.025

2014 2015 2016 2017 2018

$81,7bn$71,7bn

$35,7bn$55,4bn

$47,3bn

279 269181

300235

2014 2015 2016 2017 2018

$204,5bn $190,8bn

$119,9bn

$189,9bn

$108,7bn

737 808 755945

749

2014 2015 2016 2017 2018

$83,1bn $84,3bn $77,3bn$86,2bn

$99,1bn

542668 684

951

649

2014 2015 2016 2017 2018

$182,4bn

$259,7bn

$214,8bn $216,8bn

$162,4bn

1.325 1.478 1.367 1.3941.038

2014 2015 2016 2017 2018


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Top exchanges globally based on money raised in 2018


Money raised and number of IPOs per Exchange 2016-2018

Despite a 23% drop in the number of IPOs globally in 2018, three out of the five most active exchanges recorded an increase in the number of transactions

Top Exchanges 2018

Money raised and number of FOs per Exchange 2016-2018 Top Exchanges 2018

Japan Exchange Group LSE GroupNYSEHKEXNASDAQ

(Global)

NYSE Shanghai SENASDAQ (Global) HKEXLSE Group

Note: LSE Group includes Borsa Italiana. Source: Dealogic, as of 31 December 2018

$21bn $21bn$34bn

$21bn$14bn

$33bn

$15bn

$35bn $32bn

$11bn $6bn

$27bn

$9bn$21bn

$15bn

131 184 210

112 155

195

38 88 71 72 80 88

59 107 94

2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

$118bn $115bn $104bn$73bn $75bn $73bn

$40bn$55bn

$38bn$20bn $27bn $30bn

$60bn $50bn$30bn

348 375 269

527 621 603

313 373 318 246 272 168 150 99 49

2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

NASDAQ (Global), 15%

HKEX, 15%

NYSE, 14%

Japan Exchange Group, 12%

LSE Group, 7%

Deutsche Börse, 6%

Shanghai SE, 5%

Other, 26%

NYSE, 23%

NASDAQ (Global), 16%

LSE Group, 8%HKEX, 7%

Shanghai SE, 7%

ASX, 5%

Japan Exchange Group, 5%

Other, 30%

PwC

Global IPO and FO activity per sector


Money raised and number of IPOs and FOs per sector 2016 - 2018

The Technology sector ends 2018 with the 2nd highest IPO proceeds, with 2019 potentially being the year of the 'unicorn' with some major deals in the US pipeline

IndustrialsBasic Materials Health Care TechnologyConsumer Goods Financials Oil & GasConsumer Services Telecommunication Utilities

2,9 9,3 4,5 15,1

24,4 19,2 15,2 26,2 24,6

49,6

67,1 65,3

14,2 13,3 21,4 23,2

35,2 27,1

4,5 10,3 4,6 7,5 17,5

30,7

0,5 1,6

21,9 9,9 4,0 2,3

59 10153

136200

120 102155 137

199309 321

120 157 154236

376

214

24 36 16120 154 133

2 8 10 15 24 19

'16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18

51,1 51,0 30,5 48,4 46,7 31,5

54,0 50,9 45,8

118,3

208,5

127,1

45,3 54,3 64,2 94,2 101,7

63,2 74,4 41,0 25,4 31,0 32,6 42,8

6,7 9,7 4,2 27,9 24,0 24,3

369 388 289 303 297 210 274 333 251

635851

621448 524 549 540 561

408270 224 167 247 290 225

37 37 22 63 62 59

'16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18

Note: Financials include Closed-End Funds and Real Estate. Source: Dealogic, as of 31 December 2018

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Pricing date Issuer name Exchange Pricing Money

raisedPerformance

1-day 1-month Current

28-Sep-18 SIG Combibloc SIX Swiss Exchange In range $1.8bn 9.3% 0.0% -7.0%18-Jan-18 ADT NYSE Below range $1.5bn -11.5% -17.3% -57.1%3-Oct-18 Aston Martin Lagonda Global LSE In range $1.4bn -4.7% -18.4% -35.6%

12-Jun-18 Adyen Euronext Amsterdam Top of range $1.1bn 89.6% 141.3% 97.9%20-Sep-18 Farfetch NYSE Above range $1.0bn 42.3% 5.0% -11.5%23-May-18 GreenSky NASDAQ Top of range $1.0bn 1.6% 5.0% -58.4%18-Sep-18 Haidilao International HKEx Top of range $1.0bn 0.1% -6.6% -3.6%1-Aug-18 Cushman & Wakefield NYSE In range $0.9bn 4.8% 3.9% -14.9%24-Jan-18 Gates Industrial NYSE In range $0.8bn -2.6% -10.2% -30.3%18-Jan-18 Americold Realty Trust NYSE Top of range $0.8bn 11.1% 12.4% 59.6%

Financial sponsor-backed IPO activity globally


FS-backed IPO activity is subdued, falling both in absolute terms and as a share of total IPO activity across all regions

FS-backed activity Americas FS-backed activity EMEA FS-backed activity Asia-Pacific

Top 10 largest FS-backed IPOs 2018 globally Global FS-backed IPOs (by money raised)

Sponsor-backed;

23%

Not Sponsor-backed;

77%

Sponsor-backed;

14%

Not Sponsor-backed;

86% 89 (8%) sponsor-backed IPOs vs 1,088 (92%) non-sponsor-backed

IPOs

142 (9%) sponsor-backed IPOs vs 1,379 (91%) non-sponsor-backed

IPOs

2017 2018

$35,8bn

$15,6bn$11,5bn

$24,8bn

$18,6bn

96

52 34

67 50

2014 2015 2016 2017 2018

$30,7bn $30,7bn

$16,3bn $15,5bn

$9,7bn

67 67

40 51

26

2014 2015 2016 2017 2018

$17,0bn$14,2bn

$4,8bn$7,2bn

$3,0bn

48 43 24 24

13

2014 2015 2016 2017 2018

Note: Financial sponsor-backed has been abbreviated to FS-backed for practical sake. IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’.

Source: Dealogic, as of 31 December 2018

PwC

Volatility versus IPO activity


Volatility reached a multi-year high in Q4 2018, due to tightening monetary policy combined with trade tensions and political uncertainty

Money raised via IPOs versus volatility

Number of IPOs versus volatility


13,6 14,8 14,4 14,2 14,812,7 13,0

16,0 16,613,7

19,417,0

20,5

15,613,2 14,0

11,7 11,5 10,9 10,3

17,215,3

12,9

21,2

$0bn

$25bn

$50bn

$75bn

$100bn

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013 2014 2015 2016 2017 2018

Global money raised via IPOs VIX (average per quarter)

13,6 14,8 14,4 14,2 14,812,7 13,0

16,0 16,613,7

19,417,0

20,5

15,613,2 14,0

11,7 11,5 10,9 10,3

17,215,3

12,9

21,2

-

100

200

300

400

500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013 2014 2015 2016 2017 2018

Number of IPOs globally VIX (average per quarter)

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Americas


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Money raised via IPOs and FOs in the Americas


Top countries 2018

IPO and FO activity diverged in 2018, both in terms of proceeds and the number of transactions

Money raised via IPOs and FOs in the Americas (10-year overview)

$33,3bn$61,2bn $54,0bn $63,9bn $83,1bn

$105,8bn

$43,8bn $26,8bn$54,9bn $63,2bn$14,1bn

$11,8bn $7,0bn$13,6bn

$14,4bn$3,7bn

$7,1bn$4,3bn

$14,2bn$12,2bn

116

284 255 231322 346

248149

270 295

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

North America Latin America Number of IPO's

$291,4bn $257,1bn$184,6bn $223,3bn $230,9bn $216,0bn $240,8bn $211,7bn $202,3bn $181,4bn

$16,7bn $87,4bn

$24,1bn$14,0bn $23,5bn $18,3bn $7,9bn

$8,1bn $13,3bn $6,8bn

1.383 1.4691.237 1.032 1.162 1.144 1.054 1.072 1.238 1.025

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

North America Latin America Number of FO's


United States, 82%

Mexico, 13%

Brazil, 3%Other, 3%

United States, 89%

Canada, 8%Other, 3%

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2016 2017 2018 Q4 2016 Q4 2017 Q4 2018IPO activity Number of IPOs 149 270 295 48 85 59


% sponsor-backed 37.2% 36.7% 24.7% 45.1% 18.7% 11.9%


FO activityNumber of FOs 1,072 1,238 1,025 300 316 187Money raised $219.7bn $214.8bn $188.2bn $48.8bn $44.6bn $30.0bn

3,1%1,6% 2,6%0,6%

3,5%2,0%

4,3%

1,4%

-10,1%

-0,3%

1-Day 1-Week 1-Month 3-Month Current

Overview of IPO and FO activity in the Americas


• In Q4 2018, 59 IPOs raised $11.2bn. This represents a decrease of 44% in terms of proceeds and 31% in the number of deals compared to last year. For the year as a whole however, IPO proceeds increased by 12% and the number of deals by 9%.

• The share of IPOs pricing at the bottom or below their initial pricing range has decreased in the Americas, in a sign of continued investor appetite.

• Despite being negative, the current post-IPO performance for 2018 IPOs in the Americas is highest of the three regions.

IPO and FO activity in the Americas


The Americas experienced a weak fourth quarter in an otherwise good year

1

2

1

2

3

3

2017 2018



75

100

125

150

175


Dow Jones NASDAQ 100 S&P 500

26% 19% 13%

11% 14% 17%

40% 47% 46%

12% 9% 11%11% 11% 12%

2016 2017 2018


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10-Apr-18 Hilton Worldwide Consumer Services NYSE 77.51 - 77.51 73.00 FO - Accelerated Bookbuild $4.8bn 100.0% 9.1% 13.4% -1.6%8-May-18 Canadian Natural Resources Oil & Gas NYSE 35.11 - 35.11 34.10 FO - Bought Deal $3.3bn 100.0% 0.5% -0.6% -29.2%4-Jan-18 Sempra Energy Utilities NYSE 105.35 - 105.35 107.00 FO - Accelerated Bookbuild $2.9bn 0.0% 1.4% -1.3% 1.1%1-May-18 Centene Health Care NYSE 110.17 - 110.17 107.50 FO - Accelerated Bookbuild $2.9bn 0.0% 6.3% 9.4% 7.3%14-Nov-18 Baker Hughes a GE Oil & Gas NYSE 23.64 - 23.64 23.00 FO - Accelerated Bookbuild $2.3bn 100.0% 0.7% -4.2% -6.5%25-Sep-18 CenterPoint Energy Utilities NYSE 27.81 - 27.81 27.25 FO - Accelerated Bookbuild $1.9bn 0.0% 0.0% 1.8% 3.6%31-Jul-18 HDFC Bank Financials NYSE 109.65 - 109.65 104.00 FO - Accelerated Bookbuild $1.8bn 0.0% -0.3% -2.6% -0.4%13-Aug-18 First Data Industrials NYSE 24.67 - 24.67 23.75 FO - Accelerated Bookbuild $1.7bn 100.0% 0.8% 8.4% -28.8%8-May-18 PPL Utilities NYSE 27.45 - 27.45 27.00 FO - Bought Deal $1.7bn 0.0% 3.3% -4.5% 4.9%13-Sep-18 International Flavors & Fragrances Basic Materials NYSE 128.65 - 128.65 130.25 FO - Accelerated Bookbuild $1.7bn 0.0% 5.4% 0.5% 3.1%



Free float



9-May-18 AXA Equitable Financials NYSE 24.00 - 27.00 20.00 Below range $3.2bn 28.1% 100.0% 1.7% 5.3% -16.9%14-Sep-18 Fideicomiso CIB/3057 Financials Mexican SE 1,910.20 - 1,910.20 1,910.20 In range $3.0bn N/A 0.0% N/A N/A N/A23-Jan-18 PagSeguro Digital Industrials NYSE 17.50 - 20.50 21.50 Above range $2.6bn 38.0% 46.3% 35.8% 50.6% -12.9%28-Mar-18 iQIYI Consumer Services NASDAQ 17.00 - 19.00 18.00 In range $2.4bn 19.0% 0.0% -13.6% -0.1% -17.4%25-Jul-18 Pinduoduo Consumer Services NASDAQ 16.00 - 19.00 19.00 Top of range $1.7bn 8.3% 0.0% 40.5% -9.4% 18.1%19-Sep-18 Elanco Animal Health Consumer Goods NYSE 20.00 - 23.00 24.00 Above range $1.7bn 20.3% 0.0% 50.0% 31.7% 31.4%23-Mar-18 Fibra E - Grupo Aeroportuario1 Industrials Mexican SE 100.00 - 100.00 100.00 In range $1.5bn 15.4% 0.0% 0.0% 0.0% -7.0%18-Jan-18 ADT Industrials NYSE 17.00 - 19.00 14.00 Below range $1.5bn 14.0% 0.0% -11.5% -17.3% -57.1%24-Oct-18 StoneCo Industrials NASDAQ 21.00 - 23.00 24.00 Above range $1.4bn 21.4% 9.7% 30.6% -9.0% -23.2%11-Sep-18 NIO Consumer Goods NYSE 6.25 - 8.25 6.26 Bottom of range $1.2bn 17.9% 0.0% 5.4% 14.7% 1.8%

Leading transactions 2018 in the Americas


Top 10 largest IPOs 2018 in the Americas

The abundance of cross-border IPOs in the US remains high, accounting for 29% of proceeds and 26% of the number of IPOs

Top 10 largest FOs 2018 in the Americas

1) Fibra E – Grupo Aeroportuario de la Ciudad de MexicoNote: IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’.


PwC

IPO and FO activity per sector in the Americas



Financials accounted for 38% of proceeds 39% of the number of IPOs, primarily driven by a high number of SPACs listing in 2018


0,1 2,5 0,0 3,4 2,1 4,5 1,8

9,4 10,8 11,9

23,8 28,9

3,7 4,7 10,0

3,6 6,1 11,2

2,6 8,4

1,9 3,3 9,5 7,6

- - - 0,3 0,8 0,5

3 13 11 11 15 8 29 27 45

110 114

40 4479

11 18 18 9 17 8 19 26 303 2 3

'16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18

16,2 12,9 6,5 11,3 12,3 9,8

20,9 24,8 26,0

41,0

56,8 43,1

26,0 37,4 40,2

13,8 26,1

15,0

60,2

28,6

14,4 13,7 9,6 12,5 1,1 0,7 0,6

15,5 5,5

20,1

125 132 86 42 57 44 75 99 89211

289197

261330 359

88 124 79178

109 57 56 75 776 7 5 30 16 32

'16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18

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Top countries in terms of IPO activity in the Americas


IPO activity of top countries in the Americas 2014 - 2018

IPO activity in the US was highest since 2014, and in Mexico activity levels even reached an all-time record high

$100,5bn

$38,9bn$26,1bn

$51,5bn$61,6bn

302

189122

211243

2014 2015 2016 2017 2018

$0,2bn $0,2bn $0,2bn$6,4bn $2,0bn

1 1 111

3

2014 2015 2016 2017 2018

$3,5bn $6,9bn $3,6bn $6,4bn $9,5bn

1223

15 18 24

2014 2015 2016 2017 2018

$5,4bn $4,9bn $0,7bn $4,3bn $2,0bn

30 35

8

2920

2014 2015 2016 2017 2018


PwC

EMEA


PwC

Money raised via IPOs and FOs in EMEA


Top countries 2018

Germany took over the lead in terms of IPO proceeds, despite the United Kingdom continuing to dominate in terms of IPO numbers

Money raised via IPOs and FOs in EMEA (10-year overview)


$8,0bn$40,4bn $33,3bn $15,9bn

$37,2bn$69,4bn $68,8bn

$33,4bn $48,1bn $43,7bn$2,5bn

$5,2bn $2,0bn$2,1bn

$3,3bn

$12,9bn $3,5bn

$2,4bn$7,3bn $4,8bn

60215 167 101

182279 269

181300 235

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Europe Middle East & Africa Number of IPO's

$318,8bn

$135,2bn $132,4bn $115,1bn$174,2bn $192,4bn $179,1bn

$110,5bn$176,8bn

$97,4bn

$9,9bn

$12,4bn $10,0bn $9,3bn

$6,8bn $13,9bn $12,2bn

$10,3bn

$13,3bn

$11,4bn

817 774 628 521 637 737 808 755945

749

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Europe Middle East & Africa Number of FO's

Germany; 28%

United Kingdom; 26%Switzerland; 7%

Italy; 5%

The Netherlands; 4%

Other; 29%

United Kingdom, 32%

Germany, 18%France, 8%

Sweden, 4%

Switzerland, 4%

Other, 34%

PwC



% sponsor-backed 45.6% 28.0% 20.5% 27.5% 40.3% 11.7%


FO activityNumber of FOs 755 945 749 228 261 157Money raised $119.9bn $189.9bn $108.7bn $29.8bn $33.8bn $16.4bn

Overview of IPO and FO activity in EMEA


• In Q4 2018, 53 IPOs raised $12.9bn. This represents a drop of 31% in terms of proceeds and 43% in terms of the number of deals compared to last year. For the year as a whole, IPO proceeds decreased by 15% and the number of transactions by 22%.

• FO activity also suffered, as proceeds fell 43% and the number of deals 21% in 2018.

• The share of IPOs pricing at the bottom or below their initial pricing range was the highest in years.

• Post-IPO performance in EMEA was lowest of the three regions.

IPO and FO activity in EMEA


Equity markets in EMEA suffered early-on from global geopolitical uncertainty and finished the year in negative territory

1

2

3

4

2017 2018

3,0%2,0% 2,0%2,0% 1,7%1,5% 2,4%0,0%

-17,6%

-5,3%




4

75

100

125

150


CAC 40 DAX FTSE 100

1

2

3

2% 3% 8%24% 18%

20%

65% 68%66%

10% 10% 6%2% 1%

2016 2017 2018


PwC





20-Jun-18 Bayer Health Care Deutsche Börse 81.00 - 81.00 81.00 FO - Rights Offer $7.0bn 0.0% 19.0% 13.6% -25.2%5-Jun-18 Royal Bank of Scotland Financials LSE 2.81 - 2.81 2.71 FO - Accelerated Bookbuild $3.3bn 100.0% -1.9% -7.6% -20.0%4-May-18 Covestro Basic Materials Deutsche Börse 76.48 - 76.48 75.50 FO - Accelerated Bookbuild $2.6bn 100.0% -1.3% 4.6% -42.8%20-Feb-18 Cineworld Consumer Services LSE 1.57 - 1.57 1.57 FO – ABB (Rump) ; RO $2.5bn 0.0% 53.4% 51.7% 67.6%11-Jan-18 Covestro Basic Materials Deutsche Börse 88.46 - 88.46 86.25 FO - Accelerated Bookbuild $2.2bn 100.0% 2.6% -3.0% -49.9%13-Sep-18 Adyen Industrials Euronext Amsterdam 738.20 - 738.20 670.00 FO - Accelerated Bookbuild $1.9bn 100.0% -3.0% -14.4% -29.1%2-Oct-18 Safran Industrials Euronext Paris 120.40 - 120.40 119.65 FO - Accelerated Bookbuild $1.4bn 100.0% -1.0% -5.5% -11.9%

11-Jun-18 Dubai Islamic Bank Financials Dubai FM 3.11 - 3.11 3.11 FO - Rights Offer $1.4bn 0.0% 66.9% 59.5% 60.8%25-Jul-18 DS Smith Industrials LSE 3.50 - 3.50 3.50 FO – ABB (Rump) ; RO $1.4bn 0.0% 43.7% 45.1% -14.5%10-Jul-18 Phoenix Group Financials LSE 5.18 - 5.18 5.18 FO – ABB (Rump) ; RO $1.3bn 0.0% 30.6% 34.3% 11.1%



Free float



15-Mar-18 Siemens Healthineers Health Care Deutsche Börse 26.00 - 31.00 28.00 In range $5.2bn 15.0% 100.0% 7.9% 16.2% 30.5%10-Oct-18 Knorr-Bremse Consumer Goods Deutsche Börse 72.00 - 87.00 80.00 In range $4.4bn 29.8% 100.0% 2.1% 5.2% -1.7%28-Sep-18 SIG Combibloc Industrials SIX Swiss Exchange 10.50 - 13.50 11.25 In range $1.8bn 47.4% 20.5% 9.3% 0.0% -7.0%22-Mar-18 DWS Financials Deutsche Börse 30.00 - 36.00 32.50 In range $1.6bn 20.5% 100.0% 1.8% -4.5% -28.1%3-Oct-18 Aston Martin Lagonda Global Consumer Goods LSE 17.50 - 22.50 19.00 In range $1.4bn 25.1% 100.0% -4.7% -18.4% -35.6%

12-Jun-18 Adyen Industrials Euronext Amsterdam 220.00 - 240.00 240.00 Top of range $1.1bn 13.4% 100.0% 89.6% 141.3% 97.9%17-Oct-18 Smithson Investment Trust Financials LSE 10.00 - 10.00 10.00 In range $1.1bn 0.0% 0.0% 2.0% 3.7% 0.0%21-Mar-18 ELKEM Basic Materials Oslo Børs 29.00 - 35.00 29.00 Bottom of range $0.9bn 41.8% 19.2% -4.1% 7.2% -23.5%3-May-18 CEVA Logistics Industrials SIX Swiss Exchange 27.50 - 52.50 27.50 Bottom of range $0.8bn 72.2% 0.0% -5.8% -7.9% 8.6%4-May-18 Vivo Energy Consumer Services JSE ; LSE 1.55 - 1.80 1.65 In range $0.8bn 30.5% 100.0% 4.6% 3.0% -24.2%

Leading transactions 2018 in EMEA


Top 10 largest IPOs 2018 in EMEA

Knorr-Bremse, the German manufacturer of braking systems, undertook the largest IPO of Q4 2018 in EMEA, raising over $4.4bn on Deutsche Börse

Top 10 largest FOs 2018 in EMEA

Note: IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’.Source: Dealogic, Bloomberg as of 31 December 2018

PwC

IPO and FO activity per sector in EMEA



As the Health Care sector accounted for the largest IPO and FO of the year in EMEA, proceeds for both markets displayed a strong uptick

0,2 1,7 1,6 2,9 8,6 7,5

4,4 7,6

3,2 7,5

19,2 17,0

3,2 2,8 6,8 7,5 9,7 6,9

1,0 1,4 0,6 0,3 2,2 2,1 0,5 1,5 0,3

8,2

0,7 1,4

4 8 523 29 22 22

3422

47

97 86

2537

1729

51 40

7 10 318 29 30

2 3 3 4 2 7

'16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18

12,6 10,5 9,4 9,6 12,4 8,0 10,3 11,6 12,5

39,4

93,0

35,2

7,2 11,0 12,4 24,1 24,0 17,9

8,5 5,2 4,8 4,8 5,9 4,4 1,1 3,7 2,4 2,4 12,8

1,6

50 59 40 56 71 56 70112 87

229 282210

95 114 101 123 140 10855 61 70 58 76 57

9 11 9 10 19 11

'16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18


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Top countries in terms of IPO activity in EMEA


IPO activity of top countries in EMEA 2014 - 2018

At $13.6bn, German IPO proceeds are at an 18-year high, driven by the jumbo IPOs of Knorr-Bremse, Siemens Healthineers and DWS

$4,7bn$7,9bn

$5,8bn$3,2bn

$13,6bn

8 16 6 11 18

2014 2015 2016 2017 2018

$27,9bn

$19,8bn

$7,6bn

$14,8bn$12,7bn

112

7452

8068

2014 2015 2016 2017 2018

$1,7bn $2,6bn$0,9bn

$4,6bn $3,5bn

6 2 3 4 6

2014 2015 2016 2017 2018


3,8 $6,2bn

$1,6bn

$6,2bn$2,4bn

20 239

27 26

2014 2015 2016 2017 2018

PwC

Asia-Pacific


PwC

Money raised via IPOs and FOs in Asia-Pacific


Top countries 2018

Following the SoftBank IPO, Japan overtakes China in terms of IPO proceeds

Money raised via IPOs and FOs in Asia-Pacific (10-year overview)

$68,3bn

$175,3bn

$91,0bn$51,3bn $48,2bn $66,2bn $77,8bn $71,5bn $81,5bn $93,3bn

$2,5bn

$8,0bn

$1,5bn

$1,5bn $10,2bn$17,0bn $6,5bn $5,8bn $4,8bn $5,8bn

326

761620

397 363542 668 684

951649

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Asia Australasia Number of IPO's

$183,4bn $206,8bn$115,1bn $135,1bn $140,5bn $160,1bn

$218,2bn $197,4bn $194,7bn$139,5bn

$63,5bn $23,6bn

$23,5bn $17,6bn $20,7bn$22,3bn

$41,5bn$17,8bn $22,1bn

$22,9bn

1.381 1.3521.077 978

1.265 1.325 1.478 1.367 1.3941.038

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Asia Australasia Number of FO's


Hong Kong; 34%

Japan; 27%

China; 19%

Australia; 6%

India; 5%

Other; 10%

China, 30%

Hong Kong, 19%Australia, 14%

Japan, 13%

South Korea, 7%

Other, 17%

PwC



% sponsor-backed 6.2% 8.4% 3.0% 6.9% 10.4% 0.6%


FO activityNumber of FOs 1,367 1,394 1,038 342 438 184Money raised $214.8bn $216.8bn $162.4bn $47.6bn $66.8bn $22.0bn

Overview of IPO and FO activity in Asia-Pacific


• In Q4 2018, 172 IPOs raised $32.0bn, representing an increase of 10% in terms of proceeds but a 34% drop in the number of deals in 2018. Proceeds rose mainly because of the jumbo SoftBank IPO. A large privatisation wave in Vietnam can support IPO activity in the region in the years to come.

• In terms of FOs, both proceeds and the number of transactions fell in 2018.

• Indian stock indices shrugged off the global downward trend, as the SENSEX closed the year in positive territory.

IPO and FO activity in Asia-Pacific


In 2018 IPO proceeds rose by 15% whereas the number of deals was down by 32%

1

2

3

3

2017 2018

44,0%

10,4%

74,3%

8,9%

74,6%

8,1%

68,0%

6,0% 4,1%-3,5%




75

100

125

150

175


Hang Seng Nikkei 225 SENSEX

1

2

3% 2% 3%13% 13% 21%

50% 50% 40%

32% 33% 32%

2% 2% 3%

2016 2017 2018


PwC





4-Jul-18 Agricultural Bank of China Financials Shanghai SE N/A 3.97 FO - Cash Placing $15.0bn 0.0% -15.4% -11.1% -9.3%22-Mar-18 Tencent Holdings Technology HKEX 439.40 - 439.40 405.00 FO - Accelerated Bookbuild $9.8bn 100.0% 3.7% -1.2% -22.5%11-Sep-18 Yahoo Japan Technology Tokyo SE 353.00 - 360.00 354.00 FO - Accelerated Bookbuild $4.3bn 100.0% 2.5% 10.2% -22.6%18-Apr-18 Renesas Electronics Technology Tokyo SE 987.00 - 987.00 1,083.00 FO - Fully Marketed $2.7bn 100.0% 3.4% -2.0% -53.8%5-Sep-18 Transurban Industrials ASX 10.80 - 10.80 10.80 FO - ABB (Rump); Cash; RO $2.6bn 0.0% 7.7% 1.5% 7.9%6-Mar-18 Blackcow Food Consumer Goods Shenzhen SE N/A 16.70 FO - Cash Placing $2.4bn 0.0% -0.3% -9.2% -54.4%4-Aug-18 Huatai Securities Financials Shanghai SE N/A 13.05 FO - Cash Placing $2.1bn 0.0% N/A 18.5% 24.1%29-Jan-18 Shenwan Hongyuan Financials Shenzhen SE N/A 4.84 FO - Cash Placing $1.9bn 0.0% 13.2% 4.1% -15.9%14-May-18 Digital Telecommunications1 Technology Thailand SE 13.60 - 13.90 13.90 FO – Guar. Pref. Allocation $1.7bn 0.0% 4.3% 5.0% 3.6%12-Mar-18 Tata Consultancy Services Technology BSE ; NSE 2,872.00 - 2,925.00 2,872.00 FO - Accelerated Bookbuild $1.4bn 100.0% 0.7% 9.2% -33.8%



Free float



10-Dec-18 SoftBank Telecommunications Tokyo SE 1,500.00 - 1,500.00 1,500.00 In range $21.3bn 33.5% 100.0% -14.5% N/A -9.5%1-Aug-18 China Tower Technology HKEX 1.26 - 1.58 1.26 Bottom of range $7.5bn 27.1% 0.0% 0.0% -8.7% 17.5%29-Jun-18 Xiaomi Technology HKEX 17.00 - 22.00 17.00 Bottom of range $5.4bn 11.2% 34.2% -1.2% 0.8% -24.0%23-May-18 Foxconn Industrial Internet Technology Shanghai SE N/A 13.77 N/A $4.3bn 10.0% 0.0% 44.0% 25.1% -15.8%13-Sep-18 Meituan Dianping Consumer Services HKEX 60.00 - 72.00 69.00 In range $4.2bn 8.7% 0.0% 5.3% -20.3% -36.4%11-Jul-18 Viva Energy Oil & Gas ASX 2.50 - 2.65 2.50 Bottom of range $2.0bn 54.5% 100.0% 0.0% -2.8% -28.0%19-Oct-18 Thailand Future Fund Industrials Thailand SE 10.00 - 10.00 10.00 In range $1.4bn 90.0% 0.0% 3.0% 1.0% 1.0%7-May-18 Vinhomes Financials Ho Chi Minh SE 100,500 - 114,700 114,700 Top of range $1.3bn 10.0% 100.0% -3.7% 1.6% -36.0%11-Jun-18 Mercari Technology Tokyo SE 2,700.00 - 3,000.00 3,000.00 Top of range $1.2bn 32.2% 55.4% 76.7% 46.3% -38.6%26-Apr-18 Ping An HealthCare & Technology Consumer Services HKEX 50.80 - 54.80 54.80 Top of range $1.1bn 15.0% 0.0% 0.0% -18.5% -49.6%

Leading transactions 2018 in Asia-Pacific


Top 10 largest IPOs 2018 in Asia-Pacific

The three largest global IPOs of the year took place in Asia-Pacific, and together accounted for 35% of IPO proceeds in the region

Top 10 largest FOs 2018 in Asia-Pacific

1) Digital Telecommunications Infrastructure Fund.Note: IPOs are classified as ‘In Range’ if the IPO is priced in the middle 50% of the price range. The top and bottom 25% are classified as ‘Top of Range’ and ‘Bottom of Range’.


PwC

IPO and FO activity per sector in Asia-Pacific



Industrials remains the most active sector in terms of number of IPOs, but a small number of Telecommunication IPOs raised most proceeds

2,6 5,1 2,9 8,8

13,7 7,3 9,0 9,2 10,6

30,1 24,2

19,5

7,2 5,8 4,6 12,1

19,4

8,9 0,9 0,4 2,2 5,2 5,8

21,1

- 0,1

21,6

1,3 2,5 0,4

52 80 48102

16084 72 92 88 107 102 121

55 76 58

196307

156

8 9 584 99 73

5 7 8 20 9

'16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18

25,4 28,4 14,7

27,5 22,0 13,7

22,8 14,6

7,3

37,9

58,7 48,8

12,0 6,1 11,7

56,4 51,7

30,2

5,7 7,1 6,3 12,5 17,2 25,9

4,5 5,3 1,2 10,0 5,6 2,6

197 202 168206

169110 129 122

75

195280

215

92 82 90

330 298221

39 55 43

134 14092

22 19 8 23 27 16

'16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18 '16 '17 '18


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PwC

Top countries in terms of IPO activity in Asia-Pacific


IPO activity of top countries in Asia-Pacific 2014 - 2018

A stricter regulatory oversight (and trade tensions to some extent) are depressing activity on China’s IPO market

$28,7bn$23,7bn $21,3bn

$14,3bn

$33,3bn108 116 112

155195

2014 2015 2016 2017 2018


$11,6bn$15,6bn

$10,6bn$6,0bn

$26,6bn

75 78 73 80 88

2014 2015 2016 2017 2018

$12,9bn

$25,8bn $24,3bn

$31,6bn

$18,4bn

126

220 252

411

96

2014 2015 2016 2017 2018

$16,7bn

$6,5bn $5,6bn $4,8bn $5,8bn

72 78 65 70 50

2014 2015 2016 2017 2018

pwc.com

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