pwc global ipo watch q3 2019pwc overview of global ipo and fo activity global ipo watch q3 2019 5...

A PwC IPO Centre publication

Global IPO WatchQ3 2019PwC 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]

Christine van den Bos (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 PIPOs 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

Q3 2019Global IPO Watch3

The largest European IPO of Q3 2019 took place on Deutsche Börse, as software company TeamViewer raised $2.2bn in September

2Difficult listing conditions led to notably The We Company withdrawing its intended IPO

1

In Q3 2019, 32 IPOs raised $5.3bn on the recently opened STAR Market

5

The largest global IPO of Q3 2019 took place on HKEX, as Budweiser Brewing Company APAC raised $5.0bn in late September

3

Dovish moves from both the Fed and ECB should continue to make equity markets an attractive source for returns

4

The largest FO in Q3 2019 was undertaken by Recruit, raising $3.5bn on the Tokyo Stock Exchange in September

6

PwC

Global money raised via IPOs and FOs


Global money raised via IPOs and FOs (10-year overview) Top countries 2019YTD

With activity levels subdued in Q3 2019, expectations for Q4 are adjusted downwards

Note: Top countries have been selected based on money raised in 2019YTD. Source: Dealogic as of 30 September 2019

FO m

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$299.1bn

$178.8bn$142.5bn

$195.6bn

$274.3bn

$206.9bn

$142.5bn

$209.0bn $223.5bn

$125.7bn

1,2581,041

728 8651,167 1,185 1,013

1,5231,196

693

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019YTD

$642.0bn

$479.9bn $509.3bn$588.2bn $613.5bn

$685.8bn$551.1bn

$620.8bn

$461.9bn

$321.5bn

3,5622,902 2,508

3,046 3,178 3,323 3,186 3,5712,838

2,012

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019YTD

United States 44%

China 13%

Hong Kong 12%

United Kingdom 5%

Germany 3%Sweden 3%

India 2%

Other 19%

United States 43%

United Kingdom 7%India 6%

Australia 5%China 5%

Brazil 5%

Japan 4%

Other 26%

PwC

Overview of global IPO and FO activity


• FO activity was more resilient, as proceeds decreased by 9% and the number of deals by 4%.

• There is a notable increase in the number of IPOs pricing above its range, driven by the Americas, where 1/5 IPOs prices above its initial pricing range.

• At 10.9% for 2019YTD IPOs, the performance of transactions is strong this year. This is mainly driven by strong performance of Asia-Pacific IPOs.

• Global equity markets were volatile this quarter, as trade war escalations and Brexit deadlock were followed by more monetary easing by the ECB and the Fed, all in thin market trading.

Global IPO and FO activity

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

In the third quarter of 2019, IPO proceeds decreased by 22% whereas the number of transactions decreased by 19% as compared to last year

1

2

1

2

3

3

2018 2019YTD

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 30 September 2019

4

4

2017 2018 2017YTD 2018YTD 2019YTD Q3 2017 Q3 2018 Q3 2019IPO activity Number of IPOs 1,523 1,196 1,082 895 693 345 279 226

% sponsor-backed 9.5% 7.9% 9.2% 9.3% 7.8% 6.1% 7.2% 8.0%Money raised $209.0bn $223.5bn $141.2bn $166.0bn $125.7bn $49.2bn $51.6bn $40.4bn

% sponsor-backed 22.8% 42.5% 23.6% 17.8% 22.4% 12.6% 16.5% 22.3%

Advanced metrics Free float % 31.8% 32.3% 32.1% 32.6% 31.3% 33.0% 31.1% 29.5%Overallotment exercised (%)1 25.3% 33.4% 24.9% 33.5% 33.4% 21.8% 34.1% 23.1%% secondary shares 14.6% 13.6% 13.4% 14.5% 12.5% 12.1% 10.6% 11.4%

FO activityNumber of FOs 3,571 2,838 2,560 2,287 2,012 730 627 602 Money raised $620.8bn $461.9bn $476.3bn $391.3bn $321.5bn $143.6bn $114.3bn $104.1bn

6% 7% 7% 6% 6%14% 20% 13% 17% 20%

53% 47% 55% 47% 41%

22% 21% 21% 23% 24%

4% 5% 4% 6% 8%

2017 2018 2017YTD 2018YTD 2019YTD

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

4.4%

12.5%

3.2%

11.7%

2.6%

10.8%

2.0%

8.4%

-2.3%

10.9%

1-Day 1-Week 1-Month 3-Month Current 75

100

125

150

175

Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19

FTSE 100 Hang Seng S&P 500

PwC

Pricing date Issuer name Issuer country Sector Exchange Filing range Offer

price Pricing Money raised

Free float

Secondary shares (%)

Performance1-day 1-month Current

9-May-19 Uber Technologies Consumer Services NYSE 44.00 - 50.00 45.00 Bottom of range $8.1bn 10.7% 0.0% -7.6% -1.9% -32.3%24-Sep-19 Budweiser Brewing Company APAC Consumer Goods HKEX 27.00 - 30.00 27.00 Bottom of range $5.0bn 10.8% 0.0% 4.4% N/A 4.4%16-May-19 Avantor Health Care NYSE 18.00 - 21.00 14.00 Below range $3.3bn 44.6% 0.0% 3.6% 34.3% 5.0%28-Mar-19 Lyft Consumer Services NASDAQ 62.00 - 68.00 72.00 Above range $2.6bn 12.4% 0.0% 8.7% -20.5% -43.3%12-Apr-19 Nexi Industrials Borsa Italiana 8.50 - 10.35 9.00 In range $2.3bn 36.4% 65.2% -6.2% -6.6% 4.0%24-Sep-19 TeamViewer Technology Deutsche Börse 23.50 - 27.50 26.25 In range $2.2bn 37.5% 100.0% -3.6% N/A -5.9%17-Apr-19 Pinterest Technology NYSE 15.00 - 17.00 19.00 Above range $1.6bn 16.3% 0.0% 28.4% 40.5% 39.2%10-Apr-19 Network International Industrials LSE 3.95 - 4.65 4.35 In range $1.6bn 56.0% 100.0% 14.9% 20.2% 23.0%27-Jun-19 Traton Industrials Deutsche Börse; NASDAQ S’holm 27.00 - 33.00 27.00 Bottom of range $1.6bn 10.3% 100.0% -2.0% 0.2% -9.4%12-Apr-19 Stadler Rail Industrials SIX Swiss Exchange 33.00 - 41.00 38.00 In range $1.5bn 40.3% 100.0% 13.4% 10.6% 18.0%


price Deal Type Money raised



4-May-19 Vodafone Idea Telecommunications BSE; NSE 12.50 - 12.50 12.50 FO - Rights Offer $3.6bn 0.0% 31.2% 10.7% -56.8%24-May-19 Bharti Airtel Telecommunications BSE; NSE 220.00 - 220.00 220.00 FO - Rights Offer $3.6bn 0.0% 59.1% 57.0% 59.5%29-Mar-19 AstraZeneca Health Care LSE 64.96 - 64.96 60.50 FO - Accelerated Bookbuild $3.5bn 0.0% 2.0% -5.4% 20.0%10-Sep-19 Recruit Industrials Tokyo SE 3,313.00 - 3,313.00 3,079.00 FO - Fully Marketed $3.5bn 100.0% 3.1% N/A 9.1%2-Sep-19 Enel Americas Utilities NYSE 8.31 - 8.31 8.31 FO - Rights Offer $3.1bn 0.0% -2.6% N/A 9.6%15-Apr-19 Japan Post Insurance Financials Tokyo SE 2,433.00 - 2,433.00 2,375.00 FO - Fully Marketed $2.9bn 100.0% 0.8% -13.7% -29.7%11-Sep-19 Baker Hughes Oil & Gas NYSE 24.11 - 24.11 21.50 FO - Accelerated Bookbuild $2.8bn 100.0% 5.3% N/A 7.9%23-Jul-19 BR Distribuidora Oil & Gas B3 24.81 - 24.81 24.50 FO - Fully Marketed $2.6bn 100.0% 7.6% 14.9% 12.4%25-Jun-19 VICI Properties Financials NYSE 22.79 - 22.79 21.50 FO - Accelerated Bookbuild $2.5bn 0.0% 0.4% -1.0% 5.4%30-Jul-19 Edison International Utilities NYSE 70.60 - 70.60 68.50 FO - Accelerated Bookbuild $2.2bn 0.0% 8.8% 5.5% 10.1%

Leading transactions 2019YTD


Top 10 largest IPOs 2019YTD

The largest IPO of Q3 2019, Budweiser Brewing Company APAC, priced at the bottom of its initial pricing range as listing conditions proved difficult

Top 10 largest FOs 2019YTD

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 30 September 2019

PwC

IPO and FO activity per region


Americas

IPO activity fell in all regions in Q3 2019, but was most resilient in Asia-Pacific as the newly opened STAR Market in China proved popular

EMEA Asia-Pacific


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$50.9bn

$30.8bn

$67.4bn$76.6bn

$60.4bn

248149

267 307181

2015 2016 2017 2018 2019YTD

$243.3bn$219.7bn $215.1bn

$190.3bn$162.9bn

1,054 1,0721,240

1,048847

2015 2016 2017 2018 2019YTD

$71.7bn

$35.7bn

$55.5bn$47.4bn

$19.9bn

269 181304 238

85

2015 2016 2017 2018 2019YTD

$190.8bn

$119.9bn

$189.9bn

$109.7bn

$68.5bn

808 754946

758518

2015 2016 2017 2018 2019YTD

$84.3bn$77.3bn

$86.1bn$99.7bn

$45.3bn

668 684952

653427

2015 2016 2017 2018 2019YTD

$259.7bn

$214.8bn $216.8bn

$162.3bn

$90.7bn

1,478 1,368 1,3951,043

652

2015 2016 2017 2018 2019YTD

PwC

Top exchanges globally based on money raised in 2019YTD


Money raised and number of IPOs per Exchange 2017-2019YTD

US exchanges are pulling ahead this year, supported by a solid US pipeline and continued cross-border interest

Top Exchanges 2019YTD

Money raised and number of FOs per Exchange 2017-2019YTD Top Exchanges 2019YTD

LSE Group Shanghai SEHKEXNYSENASDAQ (Global)

NYSE NSENASDAQ (Global) BSELSE Group

Note: LSE Group includes Borsa Italiana. Source: Dealogic as of 30 September 2019

$21bn$33bn $32bn $35bn $32bn $28bn

$14bn

$33bn

$15bn $21bn $15bn$9bn

$18bn$11bn $6bn

185 212 136

88 72 45

155 196

91 107 94 34

199

50 39

2017 2018 2019YTD

2017 2018 2019YTD

2017 2018 2019YTD

2017 2018 2019YTD

2017 2018 2019YTD

$115bn $106bn$90bn

$75bn $73bn$55bn $55bn

$38bn $28bn $18bn $9bn $18bn $18bn $9bn $18bn

376 276 240

622 616 503 374 319

201 81 50 48 80 52 47

2017 2018 2019YTD

2017 2018 2019YTD

2017 2018 2019YTD

2017 2018 2019YTD

2017 2018 2019YTD

NYSE 28%

NASDAQ (Global) 17%

LSE Group 9%

BSE 6%NSE 6%

ASX 5%

Japan Exchange Group 4%

Other 25%

NASDAQ (Global) 26%

NYSE 22%

HKEX 12%LSE Group 7%

Shanghai SE 4%

Shenzhen SE 4%

Deutsche Börse 3%

Other 22%

PwC

Global IPO and FO activity per sector


Money raised and number of IPOs and FOs per sector 2017 – 2019YTD

Financials are dominant in Q3 2019 and YTD, as Real Estate firms and SPACs continue enthusiastically using high equity valuations to raise money

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

Note: Financials include Closed-End Funds and Real Estate. Source: Dealogic as of 30 September 2019

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9.3 4.5 2.6

24.3 19.3 8.8

26.3 24.6 23.3

67.2 66.8

32.3

13.3 21.5 17.8

35.1 27.3 20.1

10.3 4.6 2.2 17.5

30.8 15.4

1.6

21.9

1.6 4.0 2.4 1.6

101 53 23

200 121

51 156 137 94

309 335

161 157 156 103

377 215

147 36 16 8

155 133 96 8 10 4 24 20 6

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

51.0 30.5 11.5 46.7 31.9 15.7

50.9 45.9 31.6

208.5

127.9 110.3

54.7 64.4 36.4

101.7 63.4 42.9 41.0 26.0 18.6 32.6 43.2 24.5 9.7 4.2 11.1 24.0 24.5 19.1

387 292 194 296 210 140 333 253 168

853 632 552 526 555

396 562

413 234 225 171 97

290 230 168 37 22 22 62 60 41

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

PwC

Pricing date Issuer name Exchange Pricing Money

raisedPerformance

1-day 1-month Current

16-May-19 Avantor NYSE Below range $3.3bn 3.6% 34.3% 5.0%12-Apr-19 Nexi Borsa Italiana In range $2.3bn -6.2% -6.6% 4.0%24-Sep-19 TeamViewer Deutsche Börse In range $2.2bn -3.6% N/A -5.9%10-Apr-19 Network International LSE In range $1.6bn 14.9% 20.2% 23.0%21-Jun-19 Trainline LSE Top of range $1.4bn 17.4% 16.7% 19.7%11-Sep-19 SmileDirectClub NASDAQ Above range $1.3bn -27.5% N/A -39.7%24-Sep-19 EQT Partners NASDAQ S’holm Top of range $1.3bn 34.3% N/A 30.6%3-Apr-19 Tradeweb Markets NASDAQ Above range $1.2bn 32.6% 45.1% 37.0%

13-Jun-19 Chewy NYSE Above range $1.2bn 59.1% 54.4% 11.7%25-Sep-19 Peloton Interactive NASDAQ Top of range $1.2bn -11.2% N/A -13.5%

Financial sponsor-backed IPO activity globally


The Americas accounted for 53% of FS-backed IPO proceeds, and even 67% of the number of FS-backed transactions in Q3 2019

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

Top 10 largest FS-backed IPOs 2019YTD globally Global FS-backed IPOs (by money raised)

2018 2019YTD

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 30 September 2019

$15.6bn$11.9bn

$24.8bn$19.1bn

$15.2bn

52 35

67 53

31

2015 2016 2017 2018 2019YTD

$30.7bn

$16.3bn $15.5bn

$9.7bn $10.1bn

67

40 51

26 14

2015 2016 2017 2018 2019YTD

$14.2bn

$4.9bn$7.4bn

$4.1bn $2.7bn

43 25 26 16 9

2015 2016 2017 2018 2019YTD

Sponsor backed,

15%

Not Sponsor backed,

85%

Sponsor backed,

22%

Not Sponsor backed,

78%54 (8%) sponsor-backed IPOs vs

693 non-sponsor-backed IPOs95 (8%) sponsor-backed IPOs vs 1,196 non-sponsor-backed IPOs

PwC

Volatility versus IPO activity


The uptick in volatility caused by geopolitical tensions led to a decrease in global money raised and the number of IPOs globally

Money raised via IPOs versus volatility

Number of IPOs versus volatility


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

21.3

16.614.7 16.0

$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

2014 2015 2016 2017 2018 2019

Global money raised via IPOs VIX (average per quarter)

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

21.3

16.614.7 16.0

-

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

2014 2015 2016 2017 2018 2019

Number of IPOs globally VIX (average per quarter)

PwC

Americas


PwC

Money raised via IPOs and FOs in the Americas


Top countries 2019YTD

FO proceeds in Latin America are at their highest since 2014, and might well surpass that level by year-end

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


$61.2bn $54.0bn $63.9bn $83.1bn$105.8bn

$43.8bn $26.8bn$54.9bn $63.3bn $57.9bn

$11.8bn $7.0bn$13.6bn

$14.4bn$3.7bn

$7.1bn$4.3bn

$14.2bn $13.3bn$2.5bn

284 255 231322 346

248149

267 307181

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019YTD

North America Latin America Number of IPOs

$257.1bn$184.6bn $223.3bn $230.9bn $216.0bn $240.8bn $211.6bn $202.6bn $183.5bn $149.6bn

$87.4bn

$24.1bn$14.0bn $23.5bn $18.3bn $7.9bn

$8.1bn $13.3bn $6.8bn$16.4bn

1,4691,237 1,032 1,162 1,144 1,054 1,072 1,240 1,048 847

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019YTD

North America Latin America Number of FOs

United States 93%

Canada 3%Chile 2% Other 2%

United States 84%

Brazil 9%

Canada 6% Other 0%

PwC

Overview of IPO and FO activity in the Americas


• The percentage of secondary shares sold in an IPO has been decreasing since 2017, as companies executing an IPO are raising more new financing.

• A positive development took place on the FO market, where proceeds increased by 20% while the number of deals increased by 1%.

• The share of IPOs pricing above their initial pricing range is trending higher, whereas those pricing below is lower, a sign of investor appetite in the US.

• The non-financial NASDAQ 100 index is leaving its counterparts far behind since 2017.

IPO and FO activity in the Americas


In the third quarter of 2019, IPO proceeds decreased by 23% while the number of transactions fell by 32%

3

1

2

3

4

2018 2019YTD



2 4

1

2017 2018 2017YTD 2018YTD 2019YTD Q3 2017 Q3 2018 Q3 2019IPO activity Number of IPOs 267 307 182 236 181 62 78 53


% sponsor-backed 36.7% 24.9% 44.4% 27.5% 25.2% 31.1% 26.1% 31.1%


FO activityNumber of FOs 1,240 1,048 923 843 847 230 241 243 Money raised $215.1bn $190.3bn $170.5bn $158.4bn $162.9bn $52.0bn $47.2bn $56.6bn

20% 13% 20% 11% 9%

15%17% 13%

16% 12%

46% 47% 48%47% 49%

9% 11% 9%12% 10%

11% 12% 9% 13% 20%

2017 2018 2017YTD 2018YTD 2019YTD


1.5%1.3%

0.5%

1.8%2.0%

1.5% 1.4%

2.9%

1.6%

3.0%


125

150

175


Dow Jones NASDAQ 100 S&P 500

PwC





2-Sep-19 Enel Americas Utilities NYSE 8.31 - 8.31 8.31 FO - Rights Offer $3.1bn 0.0% -2.6% N/A 9.6%11-Sep-19 Baker Hughes Oil & Gas NYSE 24.11 - 24.11 21.50 FO - Accelerated Bookbuild $2.8bn 100.0% 5.3% N/A 7.9%23-Jul-19 BR Distribuidora Oil & Gas B3; NYSE 24.81 - 24.81 24.50 FO - Fully Marketed $2.6bn 100.0% 7.6% 14.9% 12.4%25-Jun-19 VICI Properties Financials NYSE 22.79 - 22.79 21.50 FO - Accelerated Bookbuild $2.5bn 0.0% 0.4% -1.0% 5.4%30-Jul-19 Edison International Utilities NYSE 70.60 - 70.60 68.50 FO - Accelerated Bookbuild $2.2bn 0.0% 8.8% 5.5% 10.1%19-Jul-19 IRB-Brasil Resseguros Financials B3 101.45 - 101.45 88.00 FO - Fully Marketed $2.0bn 100.0% 0.7% 15.8% 28.4%26-Jun-19 Petrobras Oil & Gas B3; NYSE 29.85 - 29.85 30.25 FO - Fully Marketed $1.9bn 100.0% 1.0% -2.6% -0.3%1-May-19 Wabtec Industrials NYSE 74.07 - 74.07 73.50 FO - Accelerated Bookbuild $1.9bn 100.0% 2.0% -15.1% -2.2%8-Aug-19 Restaurant Brands International Consumer Services NYSE 76.57 - 76.57 73.50 FO - Bought Deal $1.8bn 100.0% 1.1% 2.8% -3.2%8-Feb-19 Pinduoduo Consumer Services NASDAQ 30.33 - 30.33 25.00 FO - Accelerated Bookbuild $1.6bn 26.9% 3.8% 16.4% 28.9%



Free float



9-May-19 Uber Technologies Consumer Services NYSE 44.00 - 50.00 45.00 Bottom of range $8.1bn 10.7% 0.0% -7.6% -1.9% -32.3%16-May-19 Avantor Health Care NYSE 18.00 - 21.00 14.00 Below range $3.3bn 44.6% 0.0% 3.6% 34.3% 5.0%28-Mar-19 Lyft Consumer Services NASDAQ 62.00 - 68.00 72.00 Above range $2.6bn 12.4% 0.0% 8.7% -20.5% -43.3%17-Apr-19 Pinterest Technology NYSE 15.00 - 17.00 19.00 Above range $1.6bn 16.3% 0.0% 28.4% 40.5% 39.2%25-Jun-19 BlackRock Science & Technology Trust II Financials NYSE N/A 20.00 N/A $1.5bn N/A 0.0% 0.1% 11.7% 3.6%11-Sep-19 SmileDirectClub Health Care NASDAQ 19.00 - 22.00 23.00 Above range $1.3bn 15.2% 0.0% -27.5% N/A -39.7%3-Apr-19 Tradeweb Markets Industrials NASDAQ 24.00 - 26.00 27.00 Above range $1.2bn 20.7% 0.0% 32.6% 45.1% 37.0%

13-Jun-19 Chewy Consumer Services NYSE 17.00 - 19.00 22.00 Above range $1.2bn 13.4% 88.0% 59.1% 54.4% 11.7%25-Sep-19 Peloton Interactive Consumer Services NASDAQ 26.00 - 29.00 29.00 Top of range $1.2bn 14.3% 0.0% -11.2% N/A -13.5%28-Jun-19 Cencosud Shopping Consumer Services Santiago SE 1,475.00 - 1,700.00 1,521.00 Bottom of range $1.1bn 27.7% 0.0% 1.6% 4.5% 22.6%

Leading transactions 2019YTD in the Americas


Top 10 largest IPOs 2019YTD in the Americas

The largest IPO of Q3 2019 in the Americas was SmileDirectClub, a direct-to-consumer platform for orthodontic products, which raised $1.3bn on NASDAQ

Top 10 largest FOs 2019YTD in the Americas


PwC

IPO and FO activity per sector in the Americas



Financials only slightly outrank Consumer Services, as the latter is supported by some well-known Silicon Valley firms that went public this year


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2.5 4.5 0.0 2.2 4.5 1.3

9.4 10.8 16.6

23.7 30.1

16.7

4.7 10.0 11.8

6.1 11.2

2.5 8.4

1.9 1.4 9.5 7.6 8.2

- - 0.9 0.8 0.5 1.1

13 1 1 12 15 5 29 27 16

106 124 71

44 81

52 18 18 6 17 8 3 26 30 23 1 2 3 3

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

12.9 6.5 2.6

12.3 10.3 7.1

24.8 26.0 23.1

56.8 43.6 46.4

37.8 40.3 25.4 26.1

15.2 16.2 28.6

14.6 12.0 9.6 12.9 14.8 0.7 0.6 1.0 5.5

20.2 14.3

132 87 62 57 45 41 99 89 80

290 203 202

331 364 267

124 80 67 109 60 34 75 82 72 7 5 3 16 33 19

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

PwC

Top countries in terms of IPO activity in the Americas


IPO activity of top countries in the Americas 2015 – 2019YTD

The US is on track to raise more proceeds via IPOs in 2019 than in any of the previous four years


$38.9bn$26.1bn

$51.5bn$61.7bn

$56.2bn

189122

212247

166

2015 2016 2017 2018 2019YTD

$4.9bn $0.7bn $4.2bn $2.0bn $1.7bn

35 8 25 21 8

2015 2016 2017 2018 2019YTD

$0.0bn $0.2bn $0.3bn $0.6bn $1.1bn

0 1 2 2 2

2015 2016 2017 2018 2019YTD

$0.2bn $0.2bn$6.4bn $2.0bn $1.0bn

1 1 11 3 2

2015 2016 2017 2018 2019YTD

PwC

EMEA


PwC

Money raised via IPOs and FOs in EMEA



With geopolitical and economic headwinds, proceeds YTD are at a 7-year low

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


$40.4bn $33.3bn $15.9bn$37.2bn

$69.4bn $68.8bn$33.4bn $48.1bn $43.7bn

$18.0bn

$5.2bn $2.0bn$2.1bn

$3.3bn

$12.9bn $3.5bn

$2.4bn$7.4bn $4.8bn

$2.6bn

215 167 101182

279 269181

304 23885

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019YTD

Europe Middle East & Africa Number of IPOs

$135.2bn $132.4bn $115.1bn$174.2bn $192.4bn $179.1bn

$110.5bn$176.8bn

$97.9bn $64.4bn

$12.4bn $10.0bn $9.3bn

$6.8bn$13.9bn $12.2bn

$10.3bn

$13.3bn

$11.8bn$4.1bn

774 628 521 637 737 808 754946

758518

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019YTD

Europe Middle East & Africa Number of FOs

United Kingdom

27%

Germany 18%

Sweden 16%

Italy 11%

Switzerland 10%

Other 18%

United Kingdom

35%

Germany 14%France 8%

Netherlands 7%

Sweden 5%

Other 31%

PwC

Overview of IPO and FO activity in EMEA


• The free float of IPOs in EMEA is trending lower.

• On the FO market activity levels were subdued, as proceeds fell by 17% and the number of deals by 5%.

• Pricing volatility has increased in EMEA, approaching the level of the other two regions. This development is mainly due to more companies pricing at the bottom or even below their initial pricing range.

• Post-IPO performance remains solid in EMEA, with a 3.7% median return for 2019YTD IPOs. This performance is wobbly though, as evidenced by Peloton and TeamViewer’s drop in share price.

IPO and FO activity in EMEA


In the third quarter of 2019, IPO proceeds decreased by 10% whereas the number of transactions dropped by a massive 50%

1

2

3

4

2018 2019YTD



4

1

2

3



% sponsor-backed 28.0% 20.5% 21.8% 23.8% 50.9% 8.0% 41.9% 83.4%


FO activityNumber of FOs 946 758 684 597 518 174 148 141 Money raised $189.9bn $109.7bn $156.1bn $92.8bn $68.5bn $37.8bn $19.3bn $16.1bn

3% 8% 3% 9% 10%17%

20%17%

17% 24%

68%66%

67%66% 59%

10% 6% 10% 7% 4%2% 1% 3% 1% 3%

2017 2018 2017YTD 2018YTD 2019YTD


2.1%

4.6%

1.9%

3.7%

1.4%2.4%

0.3%

7.4%

-2.9%

3.7%


90

100

110

120


CAC 40 DAX FTSE 100

PwC





29-Mar-19 AstraZeneca Health Care LSE 64.96 - 64.96 60.50 FO - Accelerated Bookbuild $3.5bn 0.0% 2.0% -5.4% 20.0%17-Jun-19 Infineon Technologies Technology Deutsche Börse 14.36 - 14.36 13.70 FO - Accelerated Bookbuild $1.7bn 0.0% 2.7% 19.5% 20.5%14-Jun-19 Huatai Securities Financials LSE 20.00 - 24.50 20.50 FO - Fully Marketed $1.7bn 0.0% N/A N/A N/A12-Mar-19 Adyen Industrials Euronext Amsterdam 656.20 - 656.20 600.00 FO - Accelerated Bookbuild $1.7bn 100.0% 4.0% 14.5% 0.7%22-Mar-19 Cellnex Telecom Telecommunications BME 17.89 - 17.89 17.89 FO - Rights Offer $1.4bn 0.0% 35.5% 45.8% 111.9%9-Jul-19 FinecoBank Financials Borsa Italiana 10.31 - 10.31 9.85 FO - Accelerated Bookbuild $1.2bn 100.0% 2.6% -5.4% -1.4%

12-Sep-19 Alstom Industrials Euronext Paris 39.38 - 39.38 37.00 FO - Accelerated Bookbuild $1.2bn 100.0% 1.2% N/A 2.8%8-May-19 FinecoBank Financials Borsa Italiana 10.30 - 10.30 9.80 FO - Accelerated Bookbuild $1.1bn 100.0% 3.7% -5.3% -0.6%20-Mar-19 Total Oil & Gas Euronext Paris 51.54 - 51.54 51.18 FO - Accelerated Bookbuild $1.0bn 100.0% -1.6% -1.7% -6.4%3-May-19 Adyen Industrials Euronext Amsterdam 708.00 - 708.00 680.00 FO - Accelerated Bookbuild $0.8bn 100.0% -0.4% 6.0% -11.1%



Free float



12-Apr-19 Nexi Industrials Borsa Italiana 8.50 - 10.35 9.00 In range $2.3bn 36.4% 65.2% -6.2% -6.6% 4.0%24-Sep-19 TeamViewer Technology Deutsche Börse 23.50 - 27.50 26.25 In range $2.2bn 37.5% 100.0% -3.6% N/A -5.9%10-Apr-19 Network International Industrials LSE 3.95 - 4.65 4.35 In range $1.6bn 56.0% 100.0% 14.9% 20.2% 23.0%27-Jun-19 Traton Industrials Deutsche Börse; NASDAQ S’holm 27.00 - 33.00 27.00 Bottom of range $1.6bn 10.3% 100.0% -2.0% 0.2% -9.4%12-Apr-19 Stadler Rail Industrials SIX Swiss Exchange 33.00 - 41.00 38.00 In range $1.5bn 40.3% 100.0% 13.4% 10.6% 18.0%21-Jun-19 Trainline Consumer Services LSE 3.18 - 3.60 3.50 Top of range $1.4bn 65.0% 88.4% 17.4% 16.7% 19.7%24-Sep-19 EQT Partners Financials NASDAQ Stockholm 62.00 - 68.00 67.00 Top of range $1.3bn 20.0% 54.6% 34.3% N/A 30.6%28-Jun-19 Airtel Africa Telecommunications LSE 0.80 - 1.00 0.80 Bottom of range $0.7bn 18.0% 0.0% -15.3% -14.4% -36.5%14-May-19 Arabian Centres Financials Saudi SE 26.00 - 33.00 26.00 Bottom of range $0.7bn 20.0% 68.4% -3.9% 0.0% 15.4%4-Apr-19 Medacta Group Health Care SIX Swiss Exchange 88.00 - 104.00 96.00 In range $0.6bn 30.7% 100.0% 0.1% -5.0% -15.1%

Leading transactions 2019YTD in EMEA


Top 10 largest IPOs 2019YTD in EMEA

In Q3 2019, the largest IPO was undertaken by German software company TeamViewer, which raised $2.2bn on Deutsche Börse in late September

Top 10 largest FOs 2019YTD in EMEA


PwC

IPO and FO activity per sector in EMEA



Technology companies raised the most IPO proceeds in Q3 2019, but rank fourth YTD behind Industrials, Financials and Consumer Services


FO m

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1.7 1.6 -

8.6 7.5 0.3

7.6 3.2 3.1

19.2 16.8

4.6 2.8 6.8

0.8

9.7 7.1 8.0 1.4 0.6 0.0 2.2 2.1 2.3 1.5 0.3 0.7 0.7 1.4 0.0

8 5 29 22

6 34 22 15

101 88

21 37

17 11

51 41 22 10 3 1

29 30 7 3 3 1 2 7 1

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

10.5 9.4 4.5 12.4 8.0 3.5 11.6 12.5 5.5

93.0

35.5 23.0

11.0 12.4 6.4 24.0 18.3 14.5

5.2 5.1 2.6 5.9 4.4 4.4 3.7 2.4 2.6 12.8

1.6 1.5

59 40 31 71 56 36

112 87 45

283 215 152

114 102 79 140 110 81 61 71 35

76 57 45 11 9 6 19 11 8

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

PwC

Top countries in terms of IPO activity in EMEA


IPO activity of top countries in EMEA 2015 – 2019YTD

Despite 7 IPOs taking place in Italy in Q3 2019, the country drops to the fourth place in terms of IPO proceeds


$19.8bn

$7.6bn

$14.8bn$12.7bn

$6.1bn

7452

8068

19

2015 2016 2017 2018 2019YTD

$7.9bn$5.8bn

$3.2bn

$13.6bn

$4.0bn

16 6 11 184

2015 2016 2017 2018 2019YTD

$5.9bn$2.8bn $2.8bn $1.6bn

$3.5bn

32 3548

20 12

2015 2016 2017 2018 2019YTD

$6.2bn

$1.6bn

$6.2bn$2.4bn $2.5bn

239

27 26 15

2015 2016 2017 2018 2019YTD

PwC

Asia-Pacific


PwC

Money raised via IPOs and FOs in Asia-Pacific



The STAR Market has opened in China and will further support activity levels amongst technology and science companies going forward

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


$175.3bn

$91.0bn$51.3bn $48.2bn $66.2bn $77.8bn $71.5bn $81.3bn $93.5bn

$43.0bn

$8.0bn

$1.5bn

$1.5bn $10.2bn$17.0bn $6.5bn $5.8bn $4.8bn

$6.1bn

$2.4bn

761 620397 363

542 668 684952

653427

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019YTD

Asia Australasia Number of IPOs

$206.8bn$115.1bn $135.1bn $140.5bn $160.1bn

$218.2bn $197.5bn $194.7bn$139.9bn

$74.1bn

$23.6bn

$23.5bn $17.6bn $20.7bn$22.3bn

$41.5bn$17.8bn $22.1bn

$22.4bn

$16.7bn

1,3521,077 978

1,265 1,325 1,478 1,368 1,3951,043

652

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019YTD

Asia Australasia Number of FOs

China 36%

Hong Kong 33%

India 6%

Australia 5%

Thailand 5%

Other 16%

India 20%

Australia 17%

China 17%Japan 16%

Hong Kong 15%

Other 15%

PwC

Overview of IPO and FO activity in Asia-Pacific


• Despite solid post-IPO share price performance, the number of overallotment options exercised fell to 7.2% in Q3 2019.

• On the FO market, proceeds fell by 34% whereas the number of deals fell 8%.

• In line with the other two regions, pricing volatility has increased in Asia-Pacific.

• With very strong share price developments on the STAR Market, the median 2019YTD IPO performance climbs to 29.7%, hereby far outperforming IPOs in the Americas and EMEA.

IPO and FO activity in Asia-Pacific


In the third quarter of 2019, IPO proceeds fell by 23%, while the number of transactions decreased by 6%

1

2

3

4

2018 2019YTD



1

2

4

3



% sponsor-backed 8.6% 4.1% 7.5% 5.6% 6.0% 5.0% 4.5% 2.5%


FO activityNumber of FOs 1,395 1,043 956 857 652 326 240 220 Money raised $216.8bn $162.3bn $150.0bn $140.5bn $90.7bn $53.9bn $47.9bn $31.5bn

2% 3% 3% 2% 4%13% 21% 12% 18% 24%

50% 40% 53% 41% 33%

33% 32% 30% 36% 36%

2% 3% 3% 3% 3%

2017 2018 2017YTD 2018YTD 2019YTD


10.0%

29.7%

8.5%

29.6%

6.6%

29.1%

5.0%

23.6%

-2.9%

29.7%


100

125

150

175


Hang Seng Nikkei 225 SENSEX

PwC





4-May-19 Vodafone Idea Telecommunications BSE; NSE 12.50 - 12.50 12.50 FO - Rights Offer $3.6bn 0.0% 31.2% 10.7% -56.8%24-May-19 Bharti Airtel Telecommunications BSE; NSE 220.00 - 220.00 220.00 FO - Rights Offer $3.6bn 0.0% 59.1% 57.0% 59.5%10-Sep-19 Recruit Industrials Tokyo SE 3,313.00 - 3,313.00 3,079.00 FO - Fully Marketed $3.5bn 100.0% 3.1% N/A 9.1%15-Apr-19 Japan Post Insurance Financials Tokyo SE 2,433.00 - 2,433.00 2,375.00 FO - Fully Marketed $2.9bn 100.0% 0.8% -13.7% -29.7%9-Aug-19 CGN Power Utilities Shenzhen SE 1.87 - 1.87 2.49 FO - Fully Marketed $1.8bn 0.0% 44.2% 73.1% 68.7%26-Sep-19 Axis Bank Financials BSE; NSE N/A 629.00 FO - Accelerated Bookbuild $1.8bn 0.0% 8.0% N/A 8.0%9-Jul-19 China Railway Signal & Communication Industrials HKEX N/A 5.85 FO - Fully Marketed $1.5bn 0.0% 109.7% 73.5% 44.6%

20-Sep-19 Chongqing Rural Commercial Bank Financials Shanghai SE 6.04 - 6.04 7.36 FO - Fully Marketed $1.4bn 0.0% N/A N/A N/A18-Apr-19 Shenwan Hongyuan Group Financials HKEX 3.63 - 3.93 3.63 FO - Fully Marketed $1.2bn 0.0% -11.9% -12.7% -40.5%25-Jan-19 COSCO SHIPPING Industrials Shanghai SE N/A 3.78 FO - Cash Placing $1.1bn 0.0% 14.8% 34.4% 25.9%



Free float



24-Sep-19 Budweiser Brewing Company APAC Consumer Goods HKEX 27.00 - 30.00 27.00 Bottom of range $5.0bn 10.8% 0.0% 4.4% N/A 4.4%27-Sep-19 Asset World Corp Financials Thailand SE 6.00 - 6.00 6.00 In range $1.4bn 22.5% 0.0% N/A N/A N/A29-Apr-19 Ningxia Baofeng Energy Group Basic Materials Shanghai SE N/A 11.12 N/A $1.2bn 10.0% 0.0% 44.0% 6.3% -11.1%5-Jun-19 Hansoh Pharmaceutical Group Health Care HKEX 13.06 - 14.26 14.26 Top of range $1.2bn 11.1% 0.0% 36.8% 68.0% 68.3%8-Jul-19 Prime US REIT Financials Singapore SE 0.88 - 0.88 0.88 In range $0.8bn 69.3% 0.0% 0.0% N/A 0.0%

22-Mar-19 Embassy Office Parks REIT Financials BSE; NSE N/A 300.00 N/A $0.7bn 20.5% 0.0% 7.5% 7.2% 32.9%16-May-19 Eagle Hospitality Trust Financials Singapore SE 0.80 - 0.81 0.78 Below range $0.7bn 83.6% 0.0% -6.4% -10.3% -14.1%4-Jun-19 China East Education Consumer Services HKEX 9.80 - 12.26 11.25 In range $0.6bn 20.2% 0.0% -11.8% 2.4% 27.1%

13-Jun-19 CNOOC Energy Technology & Services Oil & Gas Shanghai SE N/A 2.04 N/A $0.5bn 18.3% 0.0% 44.1% 80.9% 51.0%2-May-19 ARA US Hospitality Trust Financials Singapore SE 0.88 - 0.88 0.88 In range $0.5bn 81.0% 0.0% 0.0% -1.7% 0.0%

Leading transactions 2019YTD in Asia-Pacific


Top 10 largest IPOs 2019YTD in Asia-Pacific

In Q3 2019, the largest IPO and FO both took place in Asia-Pacific

Top 10 largest FOs 2019YTD in Asia-Pacific


PwC

IPO and FO activity per sector in Asia-Pacific



The STAR Market could give Industrials, Health Care and Technology companies a further boost in future Asia-Pacific rankings


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5.1 2.9 2.6

13.6 7.3 7.2 9.3 10.7

3.6

24.2 19.9

11.0 5.8 4.7 5.1

19.3

8.9 9.6

0.4 2.2 0.8 5.8

21.1

4.9 0.1

21.6

0.0 2.5 0.4 0.5

80 48 22

159 85

40 93 88 63 102 123

69 76 58 40

308

156 119

9 5 4 100 73 66

5 7 2 20 10 2

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

28.3 14.7

4.4 22.0

13.6 5.5

14.6 7.4 3.0

58.7 48.8

40.9

6.1 11.8 4.7

51.8

29.8 12.1 7.2 6.3 4.0

17.2 25.9

5.2 5.3 1.2 7.4 5.6 2.6 3.4

201 170 102

168 109

64 122

77 43

280 215 199

83 90 52

299 223

86 56 43 28

140 92

51 19 8 13 27 16 14

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

'17 '18 '19YTD

PwC

Top countries in terms of IPO activity in Asia-Pacific


IPO activity of top countries in Asia-Pacific 2015 – 2019YTD

Despite hosting the second largest IPO of the year, activity levels on HKEX fall well short of last year, as political turmoil engulfs Hong Kong


$25.8bn $24.3bn

$31.6bn

$18.4bn $16.3bn

220 252

411

96 122

2015 2016 2017 2018 2019YTD

$23.7bn $21.3bn

$14.3bn

$33.4bn

$15.0bn

116 112155

196

91

2015 2016 2017 2018 2019YTD

$2.1bn $4.0bn

$11.5bn$5.3bn

$2.6bn

22 28 45 43 18

2015 2016 2017 2018 2019YTD

$6.5bn $5.6bn $4.8bn $6.1bn$2.2bn

78 65 71 51 28

2015 2016 2017 2018 2019YTD

pwc.com

Disclaimer

© 2019 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way.

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