Wednesday, October 18, 2017

Technology and telecommunications IPOs top $14bn in H1 2017

APAC has its best half of a year since 2002 with Americas and EMEIA also growing “despite geopolitical uncertainties”.

The technology and telecommunications sectors have had a strong first half of the year with IPOs in these two categories topping proceedings of $14.37bn.

However the telecommunications space delivered the smallest amount of IPOs (14), the technology sector was the second largest at 114 IPOs, behind industrials which reached 134 IPOs, according to the latest EY Global IPO Trends: Q2 2017.

Overall, the global IPO volume in H1 2017 was up 70% (772 IPOs) and capital raised was also up 90% ($83.4bn) compared with H1 2016. This also represented one of its strongest starts for the year in nearly a decade.

January 2017 – June 2017 global IPOs by sector

Sector Number
of IPOs
% of global
% of global
capital raised
Consumer products and services 91 11.8% 6,624 7.9%
Consumer staples 45 5.8% 3,873 4.6%
Energy 52 6.7% 9,376 11.2%
Financials 39 5.1% 10,796 12.9%
Health care 81 10.5% 7,029 8.4%
Technology 114 14.8% 13,473 16.2%
Industrials 134 17.4% 12,403 14.9%
Materials 93 12.0% 4,135 5.0%
Media and entertainment 34 4.4% 3,461 4.1%
Real estate 35 4.5% 6,627 7.9%
Retail 40 5.2% 4,707 5.9%
Telecommunications 14 1.8% 892 1.1%
Global total 772 100% 83,396 100%

Source: EY Global IPO Trends: Q2 2017

Regionally, the Asia-Pacific region led the global IPO market in terms of volume and proceeds, accounting for 61% (468) of IPOs worldwide and 44% ($37bn) of global proceeds – the highest first half of a year of activity for the region since 2002.

Greater China had the busiest H1 2017 with 317 IPOs ahead of Australia (& New Zealand) (45), Southeast Asia (48), Japan (38) and South Korea (20).

The APAC region hosted two of the world’s three largest IPOs in H1 2017 and saw ten deals greater than $500m.

The Americas region accounted for 13% of global IPOs (99 IPOs raising $25.8bn), and was led by the US where it saw its own activity surge with proceeds swelling by 216% with 80 IPOs and capital raised in the excess of $22bn.

As for EMEIA, the region represented 26% of global IPOs. During H1 2017, EMEIA “saw modest gains despite geopolitical uncertainties compared with its H1 2016 performance”, with volume increasing by 22% (205) and proceeds increasing by 9% ($20.5bn in H1 2017; $18.9bn in H1 2016) in the first half of the year.

India and the Nordics were the most active IPO markets in EMEIA, with India particularly strong, posting $2.3bn in proceeds from 57 IPOs in H1 2017.

Dr. Martin Steinbach, EY Global and EY EMEIA IPO Leader, said: “Economic fundamentals are improving in the major developed economies and IPO pipelines are building.

“Activity is underpinned by rallies in many bull markets reaching all-time highs, while investor sentiment has brightened and global outlook is positive.

“With the momentum of the first half, 2017 is poised to surpass 2016 global IPO levels by both number and proceeds.”