PwC IPO Centre Q Equity Capital Markets Briefing

Transcription

1 IPO Centre Equity Capital Markets Briefing 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. Martin Coenen Clifford Tompsett Nadja Picard Jan-Willem de Groot

2 FO money raised & # of deals IPO money raised & # of deals Global money raised via IPOs and FOs The first half of the year disappointed in terms of both proceeds and number of deals, as 386 IPOs raised $49.1bn and 1,418 FOs raised $267.3bn Global money raised via IPOs and FOs (10-year overview) Top countries ,885 $371.2bn $105.8bn $120.3bn 1,250 $295.8bn 1,036 $178.3bn 719 $140.6bn 860 $194.6bn 1,158 1,160 $272.6bn $201.6bn 386 Other, 42% US, 17% Hong Kong, 13% $49.1bn Denmark, 7% UK, 8% China, 13% 3,719 $570.1bn 1,968 $557.4bn 3,550 3,547 $841.6bn $641.4bn 2,894 $470.7bn 2,506 $509.3bn 3,039 3,171 3,314 $685.4bn $586.4bn $612.8bn 1,418 $267.3bn France, 4% Other, 28% UK, 6% US, 32% Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Top countries have been selected based on money raised in If IPOs or FOs take place in two or more countries, total money raised is attributed to all countries Canada, 7% China, 24% Source: Dealogic as of 30 June

3 Overview of global IPO and FO activity As compared to the first quarter of 2016, both IPO and FO activity improved Global IPO and FO activity Q Q IPO activity Number of IPOs 1,158 1, % sponsor-backed 18.2% 13.7% 22.6% 14.7% 11.9% 27.4% 13.9% 15.8% 4 Money raised $272.6bn $201.5bn $127.8bn $109.6bn $49.1bn $77.0bn $67.3bn $34.5bn % sponsor-backed 30.6% 29.9% 44.1% 31.1% 29.3% 50.9% 28.5% 35.5% Advanced metrics Free float % 33.2% 33.0% 35.1% 32.5% 31.6% 35.2% 32.0% 32.6% Overallotment exercised (%) 40.1% 32.5% 44.8% 33.3% 23.5% 45.7% 33.2% 18.8% % secondary shares 18.5% 16.6% 20.8% 15.5% 19.3% 21.4% 14.6% 20.2% FO activity Number of FOs 3,171 3,312 1,677 1,851 1, , Money raised $612.8bn $685.3bn $333.1bn $430.4bn $267.3bn $195.2bn $224.3bn $150.1bn 1 The continental European ECM window opened in the second quarter, as the combination of global monetary easing and a recovery in the price of oil drove equity market volatility down. 2 Global money raised rose by 136% quarteron-quarter, as proceeds totalled $34.5bn via 241 IPOs. 3 Sponsor-backed IPO proceeds rose by 472% compared to the first quarter this year. 4 Nonetheless, the first half of 2016 disappointed, as proceeds dropped 55% compared to last year. IPO pricing dynamics Post-IPO performance (median) Global indices 7% 6% 6% 7% 1% 18% 20% 16% 19% 27% 23.7% 24.1% 28.0% % 53% 52% 56% 48% 18.6% 10.8% 12.5% 12.0% 16.7% 11.5% 12.9% % 13% 15% 11% 17% 12% 8% 11% 7% 7% Below range Bottom of range In range Top of range Above range 1-Day 1-Week 1-Month 3-Month Current 2015 Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. 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 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 FTSE 100 Hang Seng S&P 500 Source: Dealogic, Bloomberg as of 30 June

4 Leading transactions 2016 The opening of the continental European IPO window is reflected in three of the largest IPOs globally having taken place in Europe in the second quarter Top 10 largest IPOs 2016 Pricing date Issuer name Issuer Country Sector Exchange Filing range Offer price Pricing Money raised Free float Secondary shares (%) Performance 1-day 1-month Current 9-Jun-16 Dong Energy Utilities NASDAQ OMX C gen In range $3.0bn 20.1% 0.0% 9.8% N.A. 2.3% 21-Mar-16 China Zheshang Bank Financials HKEx Bottom of range $1.9bn 21.7% 0.0% 0.0% -1.0% -2.8% 19-Apr-16 MGM Growth Properties Financials NYSE Top of range $1.2bn 27.6% 0.0% 4.8% 8.5% 27.1% 25-May-16 US Foods Consumer Goods NYSE In range $1.2bn 23.9% 100.0% 8.3% 1.5% 5.4% 9-Jun-16 a.s.r. Financials Euronext Amsterdam In range $1.2bn 34.8% 0.0% 2.6% N.A. -0.3% 24-May-16 BOC Aviation Industrials HKEx In range $1.1bn 30.0% 0.0% 0.0% -6.3% -6.3% 28-Jun-16 Bank of Jiangsu Financials Shanghai SE N.A N.A. $1.1bn 10.0% 0.0% N.A. N.A. N.A. 20-Mar-16 Bank of Tianjin Financials HKEx Bottom of range $1.0bn 17.2% 0.0% 0.0% 1.4% -1.2% 26-May-16 Philips Lighting Industrials Euronext Amsterdam In range $1.0bn 28.8% 0.0% 10.0% 4.3% 3.8% 4-Feb-16 LaSalle Logiport REIT Financials Tokyo SE 92k. 100k 100k Top of range $0.9bn 104.4% 0.0% 5.4% 5.3% 4.9% Top 10 largest FOs 2016 Pricing date Issuer name Issuer country Sector Exchange Filing range Offer price Deal type Money raised Secondary shares (%) Performance 1-day 1-month Current 11-Feb-16 Saipem Oil & Gas Borsa Italiana Rights Offer $3.9bn 0.0% -16.7% 6.3% -1.0% 15-Apr-16 China Yangtze Power Utilities Shanghai SE Cash Placing $3.7bn 0.0% 2.2% 2.6% 3.4% 17-Mar-16 TransCanada Oil & Gas Toronto SE Bought Deal $3.3bn 0.0% 7.3% 9.8% 27.8% 4-Apr-16 ArcelorMittal Basic Materials A dam, Paris, Lux, BME, NYSE Rights Offer $3.2bn 0.0% 80.9% 113.6% 86.0% 17-Jun-16 Banco Popular Espanol Financials BME Rights Offer $2.8bn 0.0% 11.3% N.A. -7.9% 28-Jan-16 Molson Coors Brewing Consumer Goods NYSE Accelerated Bookbuild $2.6bn 0.0% 4.6% -1.5% 16.9% 7-Jan-16 Bohai Leasing Industrials Shenzen SE N.A Cash Placing $2.5bn 0.0% 24.1% 12.4% 12.4% 16-Mar-16 Baxalta Health Care NYSE Accelerated Bookbuild $2.4bn 100.0% 1.3% 7.3% 21.9% 19-May-16 Tesla Motors Consumer Goods NASDAQ Accelerated Bookbuild $2.3bn 29.9% 2.5% 0.2% -1.3% 7-Jun-16 Suncor Energy Oil & Gas Toronto Accelerated Bookbuild $2.2bn 0.0% 1.3% N.A. 2.4% Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Country indicates the company s Country of domicile. Sector classification is based on the Industry Classification Benchmark (ICB). Source: Dealogic as of 30 June

5 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per region Asia-Pacific remains the dominant region for IPOs, while money raised in the Americas is down by over 66% compared to the first half of 2015 Americas EMEA Asia-Pacific 222 $71.5bn $96.3bn $107.8bn 228 $45.8bn $40.5bn $81.7bn $71.7bn $52.8bn $58.3bn 542 $83.1bn 663 $84.1bn 235 $8.8bn $18.0bn $18.2bn $22.1bn ,162 1,143 1,031 1,052 $235.0bn $250.2bn $230.3bn $243.0bn ,263 1,325 1,481 $260.0bn 585 $112.3bn $122.4bn $179.3bn $203.8bn $190.4bn $63.6bn $152.6bn $160.2bn $182.4bn $94.6bn Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more regions, the total money raised is attributed to all regions Source: Dealogic as of 30 June

6 Top exchanges globally based on money raised in 2016 Proceeds on the LSE dropped in the second quarter, as uncertainty surrounding the Brexit referendum took its toll on equity markets Money raised and number of IPOs per Exchange Top Exchanges $76bn NASDAQ OMX, 19% $32bn $25bn $10bn $29bn $24bn $6bn $32bn $26bn $5bn $21bn $4bn $6bn $18bn $4bn Other, 44% HKEx, 13% NASDAQ OMX 371 $132bn $147bn NYSE HKEx LSE NYSE Money raised and number of FOs per Exchange $29bn $29bn $38bn $20bn Shenzhen SE $48bn $29bn $13bn NASDAQ OMX $83bn $65bn Shanghai SE Shanghai SE Top Exchanges 2016 Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place on two or more exchanges, the total money raised is attributed to all exchanges. LSE Group includes Borsa Italiana $11bn $33bn $25bn $10bn LSE Other, 34% LSE, 8% Shanghai SE, 7% Shanghai SE, 10% NYSE, 9% LSE, 9% NYSE, 23% NASDAQ OMX, 12% Shenzhen SE, 14% Source: Dealogic as of 30 June

7 FO money raised & # of deals IPO money raised & # of deals Global IPO and FO activity per sector Financials was the dominant sector for both IPO and FO proceeds, raising a total of $78.6bn in the first half of the year on global equity capital markets Money raised and number of IPOs and FOs per sector Basic Consumer Consumer Health Telecommunication Financials Industrials Oil & Gas Technology Utilities Materials Goods Services Care Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more regions, the total money raised is attributed to all regions Sector classification is based on the Industry Classification Benchmark (ICB). Financials include Closed-End Funds and Real Estate. Source: Dealogic, Bloomberg as of 30 June

8 IPO money raised & # of deals Financial sponsor-backed IPO activity globally Though proceeds increased strongly quarter-on-quarter, financial sponsor-backed IPOs still account for a smaller percentage of money raised than in 2015 FS-backed activity Americas FS-backed activity EMEA FS-backed activity Asia-Pacific $35.1bn $35.8bn $30.7bn $30.5bn $16.0bn $15.8bn $3.5bn $3.2bn $18.1bn $9.9bn $4.8bn $6.4bn $17.0bn $13.9bn $1.0bn Top 10 largest FS-backed IPOs 2016 globally Global FS-backed IPOs (by money raised) Pricing date Issuer name Exchange Pricing Money raised 1-day Performance 1-month Current 9-Jun-16 Dong Energy NASDAQ OMX C gen In range $3.0bn 9.8% N.A. 2.3% 25-May-16 USFoods NYSE In range $1.2bn 8.3% 1.5% 5.4% 28-Apr-16 Parques Reunidos BME Bottom of range $0.7bn -4.8% -4.7% -15.8% 14-Apr-16 VAT Group SIX Swiss Exchange Top of range $0.6bn 14.6% 18.9% 37.1% 25-Apr-16 Telepizza Group BME In range $0.6bn -19.4% -16.1% -27.7% 26-Apr-16 Red Rock Resorts NASDAQ In range $0.6bn -4.1% 1.7% 12.7% 4-Mar-16 Metro Bank LSE N.A. $0.6bn 7.5% -5.8% -9.6% 12-Feb-16 Countryside Properties LSE Bottom of range $0.5bn 4.4% 2.6% -1.0% 20-Jun-16 Komeda Tokyo SE Top of range $0.5bn -4.1% N.A. 1.4% 29-Apr-16 Resurs NADAQ OMX S holm In range $0.5bn 0.2% 0.0% -12.9% (14%) sponsor-backed IPOs vs 1,001 (86%) non-sponsor-backed IPOs 46 (12%) sponsor-backed IPOs vs 340 (88%) non-sponsor-backed IPOs Note: included deals > $5m; Country indicates the company s Country of domicile; 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. If IPOs or FOs take place in two or more regions, the total money raised is attributed to all regions. Not Sponsorbacked; 70% Sponsorbacked; 30% Not sponsorbacked; 71% Sponsorbacked; 29% Source: Dealogic as of 30 June

9 Volatility versus IPO activity Average volatility came down in the second quarter, picking up only by the middle of June around the Brexit referendum Money raised via IPOs versus volatility $100bn $75bn $50bn Global money raised via IPOs VIX (average per quarter) $25bn $0bn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Number of IPOs versus volatility Number of IPOs globally VIX (average per quarter) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Source: Dealogic, Bloomberg as of 30 June

10 Americas 10

11 FO money raised & # of deals IPO money raised & # of deals Money raised via IPOs and FOs in the Americas Disappointing IPO activity means the region ranks behind both EMEA and Asia-Pacific in terms of the number of deals and proceeds Money raised via IPOs and FOs in the Americas (10-year overview) Top countries $38.7bn $1.9bn $13.5bn $8.5bn $11.7bn $106.2bn $6.5bn $105.8bn $7.1bn $13.2bn $83.1bn $2.1bn $61.2bn $54.0bn $63.9bn $32.8bn $33.3bn $43.7bn $0.5bn $8.5bn North America Latin America Number of IPO's Canada, 18% Other, 2% United States, 80% 1,256 $10.2bn $163.1bn 773 $20.7bn $238.3bn 1,383 1,466 $16.7bn $87.4bn $291.4bn $257.1bn 1,236 $24.1bn $184.6bn 1,031 1,162 1,143 1,052 $14.0bn $23.5bn $18.3bn $7.9bn $223.2bn $230.9bn $216.0bn $240.5bn 490 $2.1bn $110.2bn Canada, 18% Other, 2% North America Latin America Number of FO's Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in both North and Latin America, total money raised is attributed to both regions. Top countries have been selected based on money raised in If IPOs or FOs take place in two or more countries, total money raised is attributed to all countries. United States, 80% Source: Dealogic as of 30 June

12 Overview of IPO and FO activity in the Americas Financial sponsor-backed IPOs made a comeback in the second quarter, accounting for 26% of the number of deals and 45% of proceeds IPO and FO activity in the Americas Q Q IPO activity Number of IPOs % sponsor-backed 28.3% 23.2% 29.0% 25.9% 22.0% 33.3% 29.7% 25.6% Money raised $107.8bn $45.8bn $41.5bn $26.0bn $8.8bn $27.6bn $18.0bn $7.4bn % sponsor-backed 33.2% 34.4% 54.7% 35.9% 40.0% 55.6% 42.5% 44.9% 2 Advanced metrics Free float % 32.7% 37.1% 32.7% 37.3% 32.7% 29.4% 36.8% 29.9% Overallotment exercised (%) 77.4% 75.0% 80.4% 76.5% 65.2% 77.8% 79.0% 66.7% % secondary shares 9.4% 6.7% 8.3% 6.1% 6.8% 9.0% 7,4% 8.8% FO activity Number of FOs 1,143 1, Money raised $230.3bn $243.0bn $133.4bn $171.9bn $112.3bn $75.4bn $84.5bn $62.9bn 1 In 39 IPOs raised $7.4bn, which is a 436% increase in proceeds from the very quiet first quarter of In contrast, FO activity remained relatively stable, as 305 deals raised $62.9bn. This represents a 27% increase from Q The poor showing of 2015 year-to-date IPO performance is partly due to the selloff occurring post-brexit in equity markets. IPOs that took place this year are holding up better, and IPOs overall remain an attractive investment option. IPO pricing dynamics 3 Post-IPO performance (median) Main indices in the Americas 16% 18% 16% 20% 10% 8% 12% 28% 13% 34% 40% 9% 28% 14% 26% 30% 10% 38% 9% 2% 18% 37% 14% 23% 29% Below range Bottom of range In range Top of range Above range 4.2% 0.4% 6.2% 2.2% % 7.9% 2.5% 1.3% Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. 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 % -15.7% 1-Day 1-Week 1-Month 3-Month Current Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Dow Jones NASDAQ 100 S&P 500 Source: Dealogic, Bloomberg as of 30 June

13 Leading transactions 2016 in the Americas The two billion-dollar+ IPOs were responsible for 27% of IPO money raised in the Americas this year, despite accounting for only 4% of the number of deals Top 10 largest IPOs 2016 in the Americas Pricing date Issuer name Issuer Country Sector Exchange Filing range Offer price Pricing Money raised Free float Secondary shares (%) Performance 1-day 1-month Current 19-Apr-16 MGM Growth Properties Financials NYSE Top of range $1.2bn 27.6% 0.0% 4.8% 8.5% 27.1% 25-May-16 US Foods Consumer Goods NYSE In range $1.2bn 23.9% 0.0% 8.3% 1.5% 5.4% 19-May-16 CF Corp Basic Materials NASDAQ In range $0.7bn 92.0% 0.0% -0.1% -0.8% -0.8% 26-Apr-16 Red Rock Resorts Consumer Services NASDAQ In range $0.6bn 25.6% 100.0% -4.1% 1.7% 12.7% 23-Feb-16 Silver Run Acquisition Financials NASDAQ In range $0.5bn 88.9% 0.0% 2.1% 3.3% -0.2% 18-May-16 Grupo Supervielle Financials BCBA, NYSE Bottom of range $0.3bn 42.5% 0.0% 4.6% 10.6% 16.3% 14-Apr-16 Bats Global Markets Financials BATS Top of range $0.3bn 16.0% 0.0% 21.1% 34.5% 35.2% 25-May-16 Landcadia Financials NASDAQ In range $0.3bn 100.0% 0.0% 0.0% 0.0% 0.4% 25-May-16 Cotiviti Industrials NYSE Top of range $0.2bn 14.4% 0.0% -10.0% -0.3% 11.2% 10-May-16 Nuveen Fund Financials NYSE In range $0.2bn 0.0% 0.0% 0.2% 1.6% 3.3% Top 10 largest FOs 2016 in the Americas Pricing date Issuer name Issuer country Sector Exchange Filing range Offer price Deal type Money raised Secondary shares (%) Performance 1-day 1-month Current 17-Mar-16 TransCanada Oil & Gas Toronto SE Bought Deal $3.3bn 0.0% 7.3% 9.8% 27.8% 4-Apr-16 ArcelorMittal Basic Materials A dam, Paris, Lux, BME, NYSE Rights Offer $3.2bn 0.0% 80.9% 113.6% 86.0% 28-Jan-16 Molson Coors Brewing Consumer Goods NYSE Accelerated Bookbuild $2.6bn 0.0% 4.6% -1.5% 16.9% 16-Mar-16 Baxalta Health Care NYSE Accelerated Bookbuild $2.4bn 100.0% 1.3% 7.3% 21.9% 19-May-16 Tesla Motors Consumer Goods NASDAQ Accelerated Bookbuild $2.3bn 0.0% 2.5% 0.2% -1.3% 7-Jun-16 Suncor Energy Oil & Gas Toronto SE Bought Deal $2.2bn 0.0% 1.3% N.A. 2.4% 24-Feb-16 Enbridge Oil & Gas Toronto SE Bought Deal $1.7bn 0.0% 12.0% 21.8% 34.5% 5-Jan-16 Pioneer Natural Resources Oil & Gas NYSE Bought Deal $1.6bn 0.0% -0.7% 1.5% 29.2% 5-Apr-16 Hydro One Utilities Toronto SE Bought Deal $1.5bn 0.0% -0.4% 0.4% 9.8% 17-Feb-16 Devon Energy Oil & Gas NYSE Bought Deal $1.5bn 0.0% 5.1% 46.1% 93.3% Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Country indicates the company s Country of domicile. Sector classification is based on the Industry Classification Benchmark (ICB). Source: Dealogic as of 30 June

14 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per sector in the Americas The Oil & Gas sector remains the most active sector in terms of FO proceeds, mainly as a result of a very active first quarter Money raised and number of IPOs and FOs per sector in the Americas Basic Consumer Consumer Health Telecommunication Financials Industrials Oil & Gas Technology Utilities Materials Goods Services Care Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Sector classification is based on the Industry Classification Benchmark (ICB). Financials include Closed-End Funds and Real Estate. Source: Dealogic, Bloomberg as of 30 June

15 Top countries in terms of IPO activity in the Americas Despite relatively weak IPO activity, the United States is still the most active country in the Americas in terms of IPO proceeds IPO activity of top countries in the Americas $100.5bn 187 $61.0bn $77.8bn $38.8bn $8.5bn - - $0.0bn - $0.3bn $6.8bn $5.0bn $1.7bn $1.9bn $0.2bn $3.0bn $5.5bn $5.4bn $4.9bn $0.1bn Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more countries, the total money raised and number of IPOs is attributed to all countries. Top countries have been selected based on the money raised in Source: Dealogic as of 30 June

16 EMEA 16

17 FO money raised & # of deals IPO money raised & # of deals Money raised via IPOs and FOs in EMEA The EMEA region still ranks behind Asia-Pacific in terms of both the number of IPOs and proceeds, though raising nearly as much money in the second quarter Money raised via IPOs and FOs in EMEA (10-year overview) Top countries $17.5bn Other, 35% United Kingdom, 20% $12.8bn $3.5bn $118.9bn $5.2bn $15.6bn $2.0bn $3.3bn $69.4bn $68.8bn $40.4bn $33.3bn $37.2bn $21.0bn $2.5bn $2.1bn $1.1bn $8.0bn $15.9bn $17.1bn Europe Middle East & Africa Number of IPO's Sweden, 7% Spain, 7% Netherlands, 13% Denmark, 18% 1,047 $16.7bn $216.1bn 572 $28.8bn $226.3bn $9.7bn $318.8bn $12.4bn $10.0bn $9.3bn $134.6bn $124.4bn $115.1bn $6.8bn $13.8bn $12.3bn $173.3bn $191.8bn $178.8bn 347 $5.1bn $59.1bn Other, 33% United Kingdom, 22% France, 15% Europe Middle East & Africa Number of FO's Netherlands, 12% Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in both Europe and Middle East & Africa, total money raised is attributed to both regions. Top countries have been selected based on money raised in If IPOs or FOs take place in two or more countries, total money raised is attributed to all countries. Italy, 8% Spain, 10% Source: Dealogic as of 30 June

18 Overview of IPO and FO activity in EMEA Over 70% of IPOs and 74% of proceeds year-to-date were raised in the second quarter, as the IPO window opened up temporarily ahead of the Brexit referendum IPO and FO activity in EMEA Q Q IPO activity Number of IPOs % sponsor-backed 24.2% 24.5% 28.9% 27.7% 27.7% 29.5% 23.7% 32.4% Money raised $81.7bn $71.7bn $52.6bn $41.3bn $18.2bn $35.1bn $20.8bn $13.4bn 2 % sponsor-backed 37.6% 42.5% 49.4% 47.6% 54.5% 52.7% 38.9% 59.5% Advanced metrics Free float % 40.0% 43.4% 43.1% 43.5% 36.7% 41.6% 43.5% 36.7% Overallotment exercised (%) 30.2% 37.8% 34.3% 43.3% 23.5% 33.9% 41.2% 20.0% % secondary shares 31.9% 33.0% 34.0% 35.9% 40.2% 34.9% 36.4% 40.1% FO activity Number of FOs Money raised $203.8bn $190.4bn $115.7bn $108.8bn $63.6bn $70.8bn $45.8bn $41.9bn IPO activity in the EMEA region remained 1 weak as compared to a year ago, as 71 deals raised $13.4bn in compared to 93 deals raising $20.8bn in Q Financial sponsor-backed deals drove 2 activity again, being responsible for over 80% of proceeds in April and 60% in the quarter as a whole. 3 IPOs this year are demonstrating very strong performances, with a 3-month median of 12%. However, current performances have been depressed by the Brexit selloff. IPO pricing dynamics 3 Post-IPO performance (median) Main indices in EMEA 1% 1% 1% 2% 11% 13% 12% 17% 12% 12.0% % 57% 63% 58% 59% 4.5% 4.5% 4.8% 5.3% 6.3% 5.5% 8.0% 2.9% % 24% 22% 20% 28% 4% 5% 2% 2% 1% Below range Bottom of range In range Top of range Above range -3.4% 1-Day 1-Week 1-Month 3-Month Current 2015 Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. 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 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 CAC 40 DAX FTSE 100 Source: Dealogic, Bloomberg as of 30 June

19 Leading transactions 2016 in EMEA The Dong Energy IPO in June was by far the largest in 2016, raising over $3bn on NASDAQ OMX Copenhagen in June Top 10 largest IPOs 2016 in EMEA Pricing date Issuer name Issuer Country Sector Exchange Filing range Offer price Pricing Money raised Free float Secondary shares (%) Performance 1-day 1-month Current 9-Jun-16 Dong Energy Utilities NASDAQ OMX C gen In range $3.0bn 20.1% 100.0% 9.8% N.A. 2.3% 9-Jun-16 a.s.r. Financials Euronext Amsterdam In range $1.2bn 34.8% 100.0% 2.6% N.A. -0.3% 26-May-16 Philips Lighting Industrials Euronext Amsterdam In range $1.0bn 28.8% 100.0% 10.0% 4.3% 3.8% 6-May-16 MONETA Money Bank Financials Prague SE Bottom of range $0.8bn 57.5% 100.0% 0.1% 8.2% 5.6% 28-Apr-16 Parques Reunidos Consumer Services BME Bottom of range $0.7bn 48.0% 12.5% -4.8% -4.7% -15.8% 14-Apr-16 VAT Group Industrials SIX Swiss Exchange Top of range $0.6bn 46.0% 100.0% 14.6% 18.9% 37.1% 25-Apr-16 Telepizza Group Consumer Services BME In range $0.6bn 81.3% 78.4% -19.4% -16.1% -27.7% 3-Feb-16 CYBG Financials LSE Bottom of range $0.6bn 25.0% 100.0% 6.7% 8.6% 28.9% 4-Mar-16 Metro Bank Financials LSE N.A N.A. $0.6bn 0.0% 0.0% 7.5% -5.8% -9.6% 10-Feb-16 Scandinavian Tobacco Consumer Goods NASDAQ OMX C gen In range $0.5bn 35.9% 100.0% 0.0% 0.8% 9.5% Top 10 largest FOs 2016 in EMEA Pricing date Issuer name Issuer country Sector Exchange Filing range Offer price Deal type Money raised Secondary shares (%) Performance 1-day 1-month Current 11-Feb-16 Saipem Oil & Gas Borsa Italiana Rights Offer $3.9bn 0.0% -16.7% 6.3% -2.7% 4-Apr-16 ArcelorMittal Basic Materials A dam, Paris, Lux, BME, NYSE Rights Offer $3.2bn 0.0% 80.9% 113.6% 86.0% 17-Jun-16 Banco Popular Espanol Financials BME Rights Offer $2.8bn 0.0% 11.3% N.A. 07.9% 14-Apr-16 NN Group Financials Euronext Amsterdam Accelerated Bookbuild $1.6bn 100.0% -0.8% -3.4% -17.8% 26-Apr-16 SABMiller Consumer Goods LSE Accelerated Bookbuild $1.4bn 100.0% 0.4% 2.1% 4.6% 5-Apr-16 Schaeffler Consumer Goods Deutsche Börse Accelerated Bookbuild $1.4bn 100.0% -1.4% -2.6% -9.5% 4-May-16 Compagnie Saint-Gobain Industrials Euronext Paris Accelerated Bookbuild $1.3bn 100.0% -0.2% 3.4% -10.8% 3-Feb-16 LafargeHolcim Industrials SIX Swiss Exchange Accelerated Bookbuild $1.3bn 100.0% 6.5% 18.0% 11.8% 24-Feb-16 Auto Trader Group Consumer Services LSE Accelerated Bookbuild $1.2bn 100.0% -1.6% 5.9% -3.2% 5-Jan-16 NN Group Financials Euronext Amsterdam Accelerated Bookbuild $1.1bn 100.0% 4.0% -7.3% -20.0% Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Country indicates the company s Country of domicile. Sector classification is based on the Industry Classification Benchmark (ICB). Source: Dealogic as of 31 March

20 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per sector in EMEA In line with the global trend, Financials were the most active sector in terms of both IPO and FO numbers and proceeds Money raised and number of IPOs and FOs per sector in EMEA Basic Consumer Consumer Health Telecommunication Financials Industrials Oil & Gas Technology Utilities Materials Goods Services Care Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Sector classification is based on the Industry Classification Benchmark (ICB). Financials include Closed-End Funds and Real Estate. Source: Dealogic, Bloomberg as of 30 June

21 Top countries in terms of IPO activity in EMEA Despite a weak second quarter, the UK remains the most active country in terms of IPO activity in Two of the top three largest IPOs took place on Euronext Amsterdam IPO activity of top countries in EMEA $27.9bn $21.1bn $19.8bn $6.6bn $4.0bn - $0.5bn $2.3bn $0.2bn $3.5bn $9.1bn $7.5bn $6.5bn $9.5bn $2.9bn - $2.7bn - - $1.5bn Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more countries, the total money raised and number of IPOs is attributed to all countries. Top countries have been selected based on the money raised in Source: Dealogic as of 30 June

22 Asia-Pacific 22

23 FO money raised & # of deals IPO money raised & # of deals Money raised via IPOs and FOs in Asia-Pacific Asia-Pacific remains the most active region in the second quarter and year-to-date, with proceeds totalling $22.1bn via 235 IPOs Money raised via IPOs and FOs in Asia-Pacific (10-year overview) Top countries $8.0bn South Korea, 5% Other, 18% Hong Kong, 29% $8.0bn $175.3bn $1.5bn $2.5bn $17.0bn $6.4bn $85.2bn $91.0bn $1.5bn $10.2bn $68.3bn $51.3bn $66.2bn $77.7bn $1.6bn $48.2bn $2.2bn $30.2bn $19.9bn Asia Australasia Number of IPO's Australia, 10% Japan, 10% China, 28% 1,437 1,381 1,350 1,481 1,263 1,325 1, $41.6bn $63.5bn $23.5bn $37.8bn $22.3bn $17.6bn $20.7bn $23.5bn $183.5bn $206.8bn $218.4bn $148.1bn $35.4bn $113.8bn $135.1bn $139.6bn $160.1bn $5.9bn $65.6bn $88.7bn Japan, 4% Austrailia, 6% South Korea, 5% Hong Kong, 8% Other, 7% China, 70% Asia Australasia Number of FO's Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in both Asia and Australasia, total money raised is attributed to both regions. Top countries have been selected based on money raised in If IPOs or FOs take place in two or more countries, total money raised is attributed to all countries. Source: Dealogic as of 30 June

24 Overview of IPO and FO activity in Asia-Pacific The performance of IPOs remains high, as equity markets in Asia-Pacific outperform numerous of their Western counterparts IPO and FO activity in Asia-Pacific Q Q IPO activity Number of IPOs % sponsor-backed 8.9% 6.0% 12.4% 5.1% 3.0% 19.6% 3.9% 3.8% Money raised $83.1bn $84.1bn $33.7bn $42.3bn $22.1bn $14.4bn $28.5bn $13.7bn % sponsor-backed 20.5% 16.6% 22.7% 12.2% 4.5% 37.9% 12.2% 6.9% Advanced metrics Free float % 30.0% 27.6% 30.6% 26.6% 29.2% 33.0% 26.4% 30.8% Overallotment exercised (%) 22.9% 17.3% 25.7% 15.4% 15.2% 31.1% 14.0% 4.7% % secondary shares 17.3% 13.4% 20.4% 10.3% 13.0% 17.2% 8.6% 12.8% FO activity Number of FOs 1,325 1, Money raised $182.4bn $260.0bn $84.5bn $152.5bn $94.6bn $49.4bn $95.1bn $48.5bn 1 In, 131 IPOs raised $13.7bn compared to 232 IPOs raising $28.5bn in Q This translates into a 52% drop. 2 Financial sponsor-backed activity was again weak in the second quarter, and represents a mere 5% of proceeds year-to-date. This compares with 23% two years ago. 3 IPO performance in Asia-Pacific is very strong, returning a median of over 62% for 2015 IPOs and 34% for 2016 deals. IPO pricing dynamics 3 Post-IPO performance (median) Main indices in Asia-Pacific 3% 3% 2% 3% 2% 25% 27% 23% 24% 35% 110.7% 121.3% 146.3% % 56% 63% 63% 47% 9% 11% 11% 3% 3% 9% 13% 1% 1% 3% Below range Bottom of range In range Top of range Above range 44.0% 40.4% 37.5% 2015 Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. 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. 35.4% 25.8% % 1-Day 1-Week 1-Month 3-Month Current 34.0% Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Hang Seng Nikkei 225 SENSEX Source: Dealogic, Bloomberg as of 30 June

25 Leading transactions 2016 in Asia-Pacific The market turmoil surrounding the Brexit referendum had a smaller impact in Asia- Pacific, as two of the ten largest IPOs took place after June 23 rd Top 10 largest IPOs 2016 in Asia-Pacific Pricing date Issuer name Issuer country Sector Exchange Filing range Offer price Pricing Money raised Free float Secondary shares (%) Performance 1-day 1-month Current 21-Mar-16 China Zheshang Bank Financials HKEx Bottom of range $1.7bn 18.8% 9.1% 0.0% -1.0% -2.8% 24-May-16 BOC Aviation Ltd Industrials HKEx In Range $1.1bn 30.0% 50.0% 0.0% -6.3% -6.3% 28-Jun-16 Bank of Jiangsu Co Ltd Financials Shanghai SE N.A N.A. $1.1bn 10.0% 0.0% N.A. N.A. N.A. 20-Mar-16 Bank of Tianjin Financials HKEx Bottom of range $0.9bn 16.5% 9.1% 0.0% 1.4% -1.2% 4-Feb-16 LaSalle Logiport REIT Financials Tokyo SE 92k 100k 100k Top of range $0.9bn 104.4% 0.0% 5.4% 5.3% 4.9% 30-Jun-16 Development Bank Fin. Leasing Financials HKEx Bottom of range $0.8bn 24.8% 0.0% N.A. N.A. N.A. 28-Apr-16 Reliance Worldwide Corp Ltd Industrials Australian SE Top of range $0.7bn 70.0% 0.0% 18.0% 24.4% 23.6% 10-Jun-16 Frasers Logistics Ind. Trust Financials Singapore SE Top of range $0.7bn 71.2% 0.0% 2.3% N.A. 6.7% 20-Jun-16 Komeda Holdings Co Ltd Consumer Services Tokyo SE 1,780 1,960 1,960 Top of range $0.5bn 61.0% 100.0% -4.1% N.A. 1.4% 12-May-16 Manulife US REIT Financials Singapore SE Top of range $0.5bn 90.5% 0.0% -4.8% -2.4% -2.4% Top 10 largest FOs 2016 in Asia-Pacific Pricing date Issuer name Issuer country Sector Exchange Filing range Offer price Deal type Money raised Secondary shares (%) Performance 1-day 1-month Current 15-Apr-16 China Yangtze Power Co Ltd Utilities Shanghai SE Cash Placing $3.7bn 0.0% 2.2% 2.6% 3.4% 7-Jan-16 Bohai Leasing Industrials Shenzhen SE N.A Cash Placing $2.5bn 0.0% 24.1% 12.4% 12.4% 7-Jan-16 Industrial Securities Financials Shenzhen SE Rights Offer $1.9bn 0.0% 14.3% -4.8% -9.8%% 25-Mar-16 Guangzhou Friendship Group Consumer Services Shenzhen SE Cash Placing $1.5bn 0.0% 182.5% 131.2% 44.9% 24-Jun-16 Poly Real Estate Group Co Ltd Financials Shanghai SE N.A Cash Placing $1.4bn 0.0% 4.6% N.A. 5.4% 19-Jan-16 Huayu Automotive Systems Consumer Goods Shanghai SE N.A Cash Placing $1.4bn 0.0% -7.8% -11.9% -11.1% 30-Apr-16 PICC Property & Casualty Financials HKEx Accelerated Bookbuild $1.2bn 100.0% 2.1% 7.2% -7.3% 29-Jun-16 Kangmei Pharmaceutical Health Care Shanghai SE Cash Placing $1.2bn 0.0% -0.6% N.A. -0.6% 6-Apr-16 Guangdong Huasheng Elec.App. Industrials Shenzhen SE Cash Placing $1.1bn 0.0% 105.4% 88.1% 86.0% 25-Jan-16 Fortune Land Development Industrials Shanghai SE N.A Cash Placing $1.1bn 0.0% 7.7% 6.1% 7.7% Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Country indicates the company s Country of domicile. Sector classification is based on the Industry Classification Benchmark (ICB). Source: Dealogic as of 30 June

26 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per sector in Asia-Pacific Industrials was the most active sector in the FO market, accounting for 26% of proceeds year-to-date Money raised and number of IPOs and FOs per sector in Asia-Pacific Basic Consumer Consumer Health Telecommunication Financials Industrials Oil & Gas Technology Utilities Materials Goods Services Care Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Sector classification is based on the Industry Classification Benchmark (ICB). Financials include Closed-End Funds and Real Estate. Source: Dealogic, Bloomberg as of 30 June

27 Top countries in terms of IPO activity in Asia-Pacific Despite a strong second quarter in China, Hong Kong remains the most active country in Asia-Pacific with 36 IPOs raising $6.4bn IPO activity of top countries in Asia-Pacific $8.0bn 92 $18.9bn $28.7bn $23.7bn 36 $6.4bn 142 $14.5bn 126 $12.9bn $25.8bn 69 $6.2bn $12.7bn $10.2bn $11.6bn $15.6bn $2.3bn $1.5bn $10.0bn $16.7bn $6.4bn $2.2bn Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. If IPOs or FOs take place in two or more countries, the total money raised and number of IPOs is attributed to all countries. Top countries have been selected based on the money raised in Source: Dealogic as of 30 June

28 Disclaimer 2016 PricewaterhouseCoopers Accountants N.V. ( ) (hereinafter referred to as ''). All rights reserved. Not for further distribution without the permission of. refers to the network of member firms of PricewaterhouseCoopers International Limited (IL), or, as the context requires, individual member firms of the network. Each member firm is a separate legal entity and does not act as agent of IL or any other member firm. IL does not provide any services to clients. IL 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 IL in any way. PricewaterhouseCoopers Accountants N.V. is the author of this publication and has got the copyrights. Without written permission of this publication may not be duplicated, copied, distributed or published. This publication has been prepared for information purposes and general guidance on matters of interest only, and does not constitute, or may not be interpreted as, professional advice or as a sale, buying or trading 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, does 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.