ipo watch europe survey q1 2013 · 2015. 6. 3. · pwc 15.9% 5.9% 13.4% n/a 0.0% as at 31 mar 34.0%...

IPO Watch Europe Survey

Q1 2013

www.pwc.com

PwC

Contents

2 PwC Q1 2013 IPO Watch Europe Survey

Quarterly European IPO activity by value and volume 3

Market volatility index and stock market performance 4

European post-IPO performance 5

IPO offering value 6

IPO volume 7

Top five IPOs 8

IPO value and volume by sector 9

Global post-IPO performance 10

US overview 11

Focus on Russia and Turkey 12

IPOs by market 13

About IPO Watch Europe 14

PwC Q1 2013 IPO Watch Europe Survey

IPO proceeds rose by 37% in Q1 2013 compared with the first quarter of 2012,

driven by the IPO of LEG Immobilien on the Deutsche Börse and a surge of

domestic IPOs in London

3

* Average offering value has been calculated based on total offering value over the number of listings raising money.

Quarterly European IPO activity by value and volume

Total money raised (€m) 3,157 2,297 7,538

Average offering value (€m) * 99 51 128

Q1 2013 Q1 2012 Q4 2012

Total European listings comprise those with:

No money raised 12 11 11

Money raised 32 45 59

Total number of listings 44 56 70 56

81

56

70

44

€2,297

€726 €367

€7,538

€3,157

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

-

10

20

30

40

50

60

70

80

90

100

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Valu

e o

f IP

Os (€m

)

Volu

me o

f IP

Os

IPOs Value €m

IPO activity rapidly materialised after the Christmas break, almost taking the markets by surprise as companies moved quickly to take advantage of the uptick in the FTSE index and low volatility. The financial markets have proved more resilient in Q1 2013. Economic factors that dissuaded investors in recent years do not appear to have had a negative impact in Q1. Q1 saw the first UK Private Equity (PE)-backed IPOs on London’s Main Market since AZ Electronic Materials in October 2010 and may pave the way for IPOs of other PE-backed companies as the year unfolds.

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0

5

10

15

20

25

30

35

40

-

2,000

4,000

6,000

8,000

10,000

12,000

VIX

In

dex

Mo

ney r

ais

ed

(€m

)

Volatility compared with IPO proceeds

Money raised (€m) VIX Index


Companies have taken advantage of encouraging market conditions -

volatility has remained relatively low since August 2012 and stock market

indices have strengthened significantly since the turn of the year

4

Source: VIX Volatility Index

Source: Exchange websites

Eurozone financial crisis

IPO of Bankia, Dia and Banca Cívica in

Spain, Phosagro in London and JPW in

Poland

Sovereign debt crisis

Greek and Spanish bailouts and downturn in global economic growth

IPO of

Talanx,

Telefónica

Deutschland

and Direct

Line IPO of LEG,

Crest

Nicholson,

Esure and

Countrywide

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%

30%

35%

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13

Stock market indices - trading performance

CAC 40 FTSE 100 DAX

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15.9%

5.9%

13.4%

0.0%

34.0%

3.5%

11.4%

5.0% 1 Day

as at 31 Mar 2013

PwC Q1 2013 IPO Watch Europe Survey 5

Post-IPO performance of the top transactions in Europe has been strong in

the quarter. Additionally, the top transactions all priced within their

published price ranges, including four PE-backed IPOs.

IPO date 18 February 27 March 25 March 01 February 2 April

No Yes Yes No Yes PE-backed

Crest Nicholson

Esure Countrywide LEG Immobilien

Hellermann Tyton

IPO price versus range

Post IPO performance

0.3 0.7 0.2 1.2 0.3 Money raised (€bn)

Source: PwC analysis, Stock Exchange official websites

Note – excludes investment companies

Early April

Yes

Moleskine

0.3

Exchange London London London Deutsche Börse London Italy

Price range

IPO price

N/A- admitted to trading on

2 April

N/A- admitted to trading in early April

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59%

37%

4%

London

Deutsche Börse

Others

6

London and the Deutsche Börse dominated activity during the quarter in terms of IPO proceeds

IPO offering value by exchange


(1) The London Stock Exchange Group comprises the London and Borsa Italiana stock exchanges.

Stock exchange offering value (€m) Q1 2013 Q1 2012 Q4 2012

London Stock Exchange Group (1) 1,885 619 3,929

London Stock Exchange 1,878 619 3,929

Borsa Italia 7 - -

Deutsche Börse 1,165 - 2,080

Warsaw 58 14 653

Oslo Børs & Oslo Axess 41 - 230

Luxembourg 5 - 462

NYSE Euronext 3 975 17

NASDAQ OMX - 2 46

Wiener Börse - - -

SIX Swiss Exchange - 681 120

BME (Spanish Exchange) - 6 1

Total 3,157 2,297 7,538

The first quarter of 2013 has been encouraging. If current market sentiment persists, London and potentially the rest of Europe appears set for a good year with a large pipeline of businesses sizing up the market.

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30%

30%

9%

7%

7%

17%

London

Warsaw

OMX

Borsa Italiana

Luxembourg

Others

7

IPO volume by exchange

London held 30% of the quarter’s transactions with an average offering

value of €144m. Warsaw also held 30% of the quarter’s transactions.

However, its average transaction value was €6m.


(1) The London Stock Exchange Group comprises the London and Borsa Italiana stock exchanges.

Stock exchange Q1 2013 Q1 2012 Q4 2012

London Stock Exchange Group (1) 16 14 26

London Stock Exchange 13 16 26

Borsa Italia 3 - -

Warsaw 13 25 21

NASDAQ OMX 4 3 8

Luxembourg 3 1 3

NYSE Euronext 3 8 2

Deutsche Börse 2 1 7

Oslo Børs & Oslo Axess 2 - 1

Wiener Börse 1 - -

SIX Swiss Exchange - 1 1

BME (Spanish Exchange) - 3 1

Total 44 56 70

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Top five IPOs

8

LEG Immobilien was the only IPO to raise in excess of €1bn and was the

largest in Germany since Telefónica Deutschland in Q4 2012. Four domestic

IPOs in London completed the top five, include two PE backed IPOs.


85%

15%

Top 5 IPOs Others

Q1 2013 €m raised Sector Market Segment Country of Origin

LEG Immobilien 1,165 Real Estate Deutsche Börse Prime Germany

esure 703 Insurance London Main UK

Greencoat UK Wind 302 Investment Company London Main UK

Crest Nicholson 261 Construction & Materials London Main UK

Countrywide 237 Real Estate London Main UK

Total 2,668


Ziggo 804 Telecommunications Euronext Euronext Netherlands

DKSH 681 Industrial Goods & Services SIX Swiss Main Switzerland

Bluecrest Bluetrend 198 Investment Company London Main Guernsey

Ruspetro 196 Oil & Gas London Main Russia

Alcentra European 97 Investment Company London Main Guernsey

Total 1,976


OJSC MegaFon 1,288 Telecommunications London Main Russia

Telefónica Deutschland 1,260 Telecommunications Deutsche Börse Prime Germany

Direct Line 976 Insurance London Main UK

Talanx Aktiengesellschaft 767 Insurance Deutsche Börse Prime Germany

Alior Bank 511 Banks Warsaw Main Poland

Total 4,802

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46%

23%

20%

8%

3%

Real Estate Insurance

Investment Company Construction & Materials

Others

9

IPO value and volume by sector

The real estate sector raised the most value in Q1, buoyed by the IPO of LEG

Immobilien and Countrywide


IPO value by sector Sector (no. of IPOs)

Q1 2013

Q1 2012

Q4 2012

Industrial Goods & Services 7 8 12

Technology 5 13 8

Investment Companies 5 5 8

Real Estate 4 6 4

Oil & Gas 3 3 2

Financial Services 3 3 1

Construction & Materials 3 1 1

Media 3 3 1

Pharmaceuticals & Biotech 2 4 6

Telecommunications 2 3 4

Health Care 2 1 2

Food & Beverage 2 - 1

Insurance 1 - 2

Basic Resources 2 - -

Mining - 4 6

Retail - 1 3

Travel & Leisure - - 3

Utilities - - 2

Chemicals - 1 1

Automobiles & Parts - - 1

Banks - - 1

Personal & Household Goods - - 1

Total IPOs 44 56 70

Total value (€m) 3,157 2,297 7,538

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-9.5

-5.0

-4.0

-1.3

3.5

14.8

16.0

25.4

37.0

57.5

0.0

0.0

-5.7

1.6

5.9

16.5

11.1

19.3

0.2

30.5

-20 -10 - 10 20 30 40 50 60 70

Moscow Exchange MICEX (Moscow)

LEG Immobilien (Germany)

West Corp (Nasdaq)

Grupo Sanborns (Mexico)

esure (London)

Infraestructura Energetica Nova SAB (Mexico)

Pinnacle Foods (New York)

Zoetis (New York)

CVR Refining (New York)

Norwegian Cruise Line (Nasdaq)

% change of share price post IPO

1 day

as at 31 March

PwC Q1 2013 IPO Watch Europe Survey 10

The US exchanges hosted five of the top ten global IPOs during the quarter.

Four of these transactions were also the strongest post-IPO performers in

the top 10 during Q1.

2012 Global Top 10 IPOs

Source: Various stock market official websites

Post-IPO performance

Note – excludes investment companies

€329m

€442m

€1,649m

€444m

€379m

€703m

€646m

€325m

€1,165m

€371m

PwC

US overview

11

Activity in the US markets increased from both prior year and prior quarter.

The JOBS Act, which was introduced in mid-2012, continues to fuel activity,

with over 80% of Q1 IPOs initially filing under the Act.


Q1 2013 Q1 2012 Q4 2012

Stock exchange IPOs Offering

value (€m) IPOs Offering


value (€m) NYSE 16 4,143 25 3,338 20 4,218 NASDAQ 18 1,693 19 1,030 14 652 US total 34 5,836 44 4,368 34 4,870 Europe total 44 3,157 56 2,297 70 7,538

Total IPO proceeds raised in the US in Q1 2013 exceeded Q1 of 2012 and the final quarter of 2012 by 34% and 20%, respectively, despite a decrease in the number of IPOs. IPO activity was led by offerings from Zoetis, Pinnacle Foods, CVR Refining, Norwegian Cruise Line and West Corp, which raised a combined €3.2 billion of proceeds, 55% of the quarter’s total. All five transactions featured in the top 10 global IPOs in the quarter. The IPO pipeline remains strong and given the improving US economy, there is an optimistic outlook for the US IPO market for the remainder of 2013.

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Focus on Russia and Turkey


Activity on the Borsa Istanbul in Q1 2013 has been particularly slow with only 1 IPO raising €106 million. The IPO of Halk Gayrimenkul Yatırım Ortaklığı A.Ş. (‘GYO’) in February 2013 was the largest for two years and resulted from the sale by Turkiye Halk Bankasi A.Ş. of shares in its real estate unit. In February 2013, the Borsa Istanbul announced changes to Turkish Capital Markets Regulations aimed at improving investor confidence such as introducing more transparency around use of proceeds, related party transactions and sharedealings for significant shareholders. However, some changes may have an adverse impact on market activity, such as the new requirement to underwrite transactions under 20 million TL which may reduce IPO activity for smaller companies and new rules regarding a valuation cap of 20% above the bottom of the target range for the maximum valuation of shares.

In Q1 2013, the Moscow Exchange raised €371m in the biggest IPO on Russia’s bourse since 2007, although it priced at the bottom of its target range. It was the first major test of the government's push to transform the Russian market into an international financial centre and encourage domestic listings. For a number of years, Russian companies have sought to include a stock-market listing abroad, where capital has been more readily accessible.

Q1 2013 Q1 2012 Q4 2012




value (€m)

Russia 1 371 - - 2 * - *

Turkey 1 106 6 65 4 61

Europe total 44 3,157 56 2,297 70 7,538

* OJSC Megafon and MD Medical Group dual listed in London and Russia in Q4 2012. Total proceeds have been included in London as the primary money raising exchange.

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(1) The London Stock Exchange Group comprises the London and Borsa Italiana stock exchanges. (2) Cumulatively the WSE NewConnect raised €2m in Q1 2013. However, certain transactions raised an amount that rounded down to nil and the figure above is the sum of the rounded values.

IPOs by market


Q1 2013 Q1 2012 Q4 2012




value (€m) TOTAL

London Stock Exchange Group (1) 16 1,885 14 619 26 3,929

Deutsche Börse 2 1,165 1 - 7 2,080

Warsaw 13 58 25 14 21 653

Oslo Børs & Oslo Axess 2 41 - - 1 230

Luxembourg 3 5 1 - 3 462

NYSE Euronext 3 3 8 975 2 17

NASDAQ OMX 4 - 3 2 8 46

Wiener Börse 1 - - - - -

SIX Swiss Exchange - - 1 681 1 120

BME (Spanish Exchange) - - 3 6 1 1

Total 44 3,157 56 2,297 70 7,538 EU-REGULATED

London Main 7 1,835 6 569 13 3,554

Deutsche Börse (Prime and General Standard) 1 1,165 - - 4 2,080

Warsaw (Main) 1 57 4 8 5 632

Oslo Børs 1 26 - - 1 230

NYSE Euronext (Euronext) 1 - 6 972 1 14

Wiener Börse 1 - - - - -

SIX Swiss Exchange - - 1 681 1 120

NASDAQ OMX (Main) - - 1 - 4 38

Luxembourg - - 1 - - -

EU-regulated sub-total 12 3,083 19 2,230 29 6,668 EXCHANGE-REGULATED

London AIM 6 43 8 50 12 328

Oslo Axess 1 15 - - - -

Borsa Italiana AIM 3 7 - - - -

Luxembourg (EuroMTF) 3 5 - - 3 462

NYSE Euronext (Alternext) 2 3 2 3 1 3

Warsaw (NewConnect) (2) 12 1 21 6 16 21

NASDAQ OMX (First North) 4 - 2 2 4 8

Deutsche Börse (Entry Standard) 1 - 1 - 3 -

London SFM - - - - 1 47

BME (Spanish Exchange) (MAB) - - 3 6 1 1

Exchange-regulated sub-total 32 74 37 67 41 870

Europe total 44 3,157 56 2,297 70 7,538

PwC

About IPO Watch Europe

IPO Watch Europe surveys all new primary market equity IPOs on Europe’s principal stock markets and market segments (including exchanges in Austria, Belgium, Denmark, France, Germany, Greece, the Netherlands, Ireland, Italy, Luxembourg, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the UK) on a quarterly basis. Movements between markets on the same exchange and greenshoe offerings are excluded.

This survey was conducted between 1 January and 31 March 2013 and captures new market IPOs based on their transaction date. All market data is sourced from the stock markets themselves and has not been independently verified by PricewaterhouseCoopers LLP.

14 PwC Q1 2013 IPO Watch Europe Survey

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

ipo watch europe survey q1 2013 · 2015. 6. 3. · pwc 15.9% 5.9% 13.4% n/a 0.0% as at 31 mar 34.0%...

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