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 was the slowest quarter in terms of IPO activity since Q1 2009, with only $14.2bn raised via 141 IPOs globally 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 859 $194.6bn 1,155 1,160 $272.5bn $201.5bn 141 Japan, 9% Other, 24% Hong Kong, 25% $14.2bn US, 9% UK, 19% China, 14% 3,719 $570.1bn 1,968 $557.4bn 3,550 3,546 $841.6bn $641.2bn 2,894 $470.7bn 2,506 $509.3bn 3,039 3,171 3,312 $685.3bn $586.4bn $612.8bn 545 Italy, 4% UK, 4% Other, 21% US, 33% $115.6bn Canada, 9% 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 China, 29% Source: Dealogic as of 31 March

3 Overview of global IPO and FO activity Sponsor-backed activity suffered a slowdown, accounting for only 15% of the money raised compared to 35% in Q Global IPO and FO activity Q Q IPO activity Number of IPOs 1,155 1, % sponsor-backed 18.4% 13.7% 16.3% 15.9% 5.0% Money raised $272.5bn $201.5bn $50.7bn $42.3bn $14.2bn % sponsor-backed 31.5% 29.9% 33.7% 35.4% 14.7% 4 Advanced metrics Free float % 33.1% 33.0% 34.9% 33.5% 29.6% Overallotment exercised (%) 40.1% 32.5% 43.9% 33.6% 22.8% % secondary shares 18.5% 16.6% 20.0% 17.1% 17.8% FO activity Number of FOs 3,171 3, Money raised $612.8bn $685.3bn $137.9bn $206.1bn $115.6bn 1 Increased market volatility, due to a combination of fears over slowing global growth, a drop in the price of oil, and diverging central bank policies, led to a slow first quarter 2 Global IPO money raised fell by 66%, with 141 IPOs raising $14.2bn in versus $42.3bn via 252 IPOs in Q Global sponsor-backed IPO activity slowed down with 7 deals raising $2.1bn in versus 40 deals raising $14.9bn in Q Global FO activity also suffered from increased volatility, as the amount of money raised fell by 44% compared to Q IPO pricing dynamics Post-IPO performance (median) Global indices 7% 6% 7% 6% 18% 20% 18% 18% 50% 53% 57% 60% 38% 41% 13% 13% 9% 11% 16% 13% 8% 9% 5% 5% Below range Bottom of range In range Top of range Above range 19.5% 10.8% 23.9% 14.1% % 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 9.1% 37.2% N.A % 1-Day 1-Week 1-Month 3-Month Current 15.6% Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 FTSE 100 Hang Seng S&P 500 Source: Dealogic, Bloomberg as of 31 March

4 Leading transactions 2016 Though the profitability of the financial sector was put into question due to negative interest rates, the five largest IPOs globally were executed by Financials 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 21-Mar-16 China Zheshang Bank Financials HKEx Bottom of range $1.7bn 1.8% 9.1% 0.0% N.A. -0.8% 20-Mar-16 Bank of Tianjin Financials HKEx Bottom of range $0.9bn 16.5% 9.1% 0.0% N.A. -0.1% 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% 8.7% 3-Feb-16 CYBG Financials LSE Bottom of range $0.6bn 25.0% 100.0% 6.7% 8.6% 15.8% 4-Mar-16 Metro Bank Financials LSE N.A N.A. $0.6bn 0.0% 0.0% 7.5% N.A. -6.0% 10-Feb-16 Scandinavian Tobacco Consumer Goods NASDAQ OMX C gen In range $0.5bn 35.9% 100.0% 0.0% 0.8% 5.2% 12-Feb-16 Countryside Properties Consumer Goods LSE Bottom of range $0.5bn 34.5% 57.2% 4.4% 2.6% 4.4% 23-Feb-16 Silver Run Acquisition Financials NASDAQ In range $0.5bn 88.9% 0.0% 2.1% 3.3% 3.5% 16-Mar-16 Middle East Healthcare Health Care Saudi Arabia SE In range $0.5bn 23.1% 0.0% 0.0% N.A. 0.0% 9-Feb-16 Ascential Consumer Services LSE In range $0.4bn 37.5% 28.6% 0.0% 3.0% 3.0% 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% -2.7% 17-Mar-16 TransCanada Oil & Gas Toronto Bought Deal $3.2bn 0.0% 7.3% N.A. 11.6% 28-Jan-16 Molson Coors Brewing Consumer Goods NYSE Accelerated Bookbuild $2.6bn 0.0% 4.6% -1.5% 11.2% 7-Jan-16 Bohai Leasing Industrials Shenzhen 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% N.A. 7.0% 7-Jan-16 Industrial Securities Financials Shanghai SE Rights Offer $1.9bn 0.0% 14.3% -4.8% 7.3% 24-Feb-16 Enbridge Oil & Gas Toronto Bought Deal $1.7bn 0.0% 12.0% 21.8% 24.2% 5-Jan-16 Pioneer Natural R cs Oil & Gas NYSE Bought Deal $1.6bn 0.0% -0.7% 1.5% 20.3% 25-Mar-16 Guangzhou Friendship Consumer Services Shenzhen Cash Placing $1.5bn 0.0% 182.5% N.A % 17-Feb-16 Devon Energy Oil & Gas NYSE Bought Deal $1.5bn 0.0% 5.1% 46.1% 46.4% 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 31 March

5 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per region Asia-Pacific remained the dominant region for IPOs in the first quarter of 2016, both in terms of money raised and number of deals Americas EMEA Asia-Pacific 222 $71.5bn $96.2bn $107.8bn 228 $45.8bn $40.5bn $81.7bn $71.7bn $52.8bn $58.3bn 540 $83.1bn 663 $84.0bn 101 $1.4bn $18.0bn $4.7bn $8.1bn ,162 1,143 1,031 1,052 $235.0bn $250.2bn $230.3bn $243.0bn $122.4bn 632 $179.3bn $203.8bn $190.2bn $152.6bn 1,263 1,325 1,483 $160.2bn $182.4bn $260.1bn 236 $48.4bn $21.6bn $45.6bn 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 31 March

6 Top exchanges globally based on money raised in 2016 IPO and FO activity was concentrated on a few large exchanges, with HKEx and NYSE accounting for a about quarter of all IPO and FO activity, respectively Money raised and number of IPOs per Exchange Top Exchanges Other, 25% HKEx, 24% $29bn $24bn $32bn $26bn $32bn $25bn HKEx NYSE $4bn $132bn $147bn LSE Group NASDAQ OMX Tokyo SE Money raised and number of FOs per Exchange $29bn $3bn $29bn $38bn $20bn Shenzhen SE $2bn $48bn $29bn $13bn Shanghai SE $12bn $16bn $1bn $83bn $65bn NASDAQ OMX $7bn $8bn Shenzhen SE TMX Group Shenzhen, 7% Tokyo, 8% Other, 29% TMX Group, 9% NASDAQ OMX, 16% Top Exchanges 2016 NASDAQ OMX, 10% Shanghai, 11% 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 $1bn $33bn $25bn $10bn LSE, 19% NYSE, 24% Shenzhen, 17% Source: Dealogic as of 31 March

7 FO money raised & # of deals IPO money raised & # of deals Global IPO and FO activity per sector Whereas Financials continued to be the dominant sector for IPOs (raising $6.3bn), the Oil & Gas sector was the most active in terms of FO money raised ($23.6bn) 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 31 March

8 IPO money raised & # of deals Financial sponsor-backed IPO activity globally Nearly all FS-backed IPO activity occurred in the EMEA region in the first quarter of 2016, as 5 deals raised $1.9bn FS-backed activity Americas FS-backed activity EMEA FS-backed activity Asia-Pacific $35.3bn $35.8bn $33.1bn $30.5bn $16.0bn $15.8bn $18.1bn $17.0bn $13.9bn $0.2bn $3.2bn $1.9bn $4.8bn $6.4bn $0.0bn Top 7 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 4-Mar-16 Metro Bank LSE N.A. $0.6bn 7.5% N.A. -6.0% 12-Feb-16 Countryside Properties LSE Bottom of range $0.5bn 4.4% 2.6% 4.4% 9-Feb-16 Ascential LSE In range $0.4bn 0.0% 3.0% 3.0% 21-Mar-16 Senvion Deutsche Börse Below range $0.3bn 0.0% N.A. 0.0% 2-Feb-16 BeiGene NASDAQ Top of range $0.2bn 18.0% 29.9% 22.1% 22-Mar-16 Humana NASDAQ OMX S holm Top of range $0.1bn 19.4% N.A. 10.5% 19-Jan-16 China Crystal New Material KOSDAQ Below range $0.0bn 29.0% 4.5% 8.3% Not Sponsorbacked; 70% Sponsorbacked; 30% (14%) sponsor-backed IPOs vs 1,001 (86%) non-sponsor-backed IPOs Not Sponsorbacked; 85% Sponsorbacked; 15% 7 (5%) sponsor-backed IPOs vs 134 (95%) 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. Source: Dealogic as of 31 March

9 Volatility versus IPO activity High volatility was a major cause for the slowdown of IPO activity in the first quarter, with the VIX rising to levels not seen since 2012 Money raised via IPOs versus volatility $200bn $150bn $100bn Global money raised via IPOs VIX (average per quarter) $50bn $0bn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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 Q Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Source: Dealogic, Bloomberg as of 31 March

10 Americas 10

11 FO money raised & # of deals IPO money raised & # of deals Money raised via IPOs and FOs in the Americas The slowdown in the Americas was mainly felt in terms of IPO activity Money raised via IPOs and FOs in the Americas (10-year overview) Top countries $38.7bn $1.9bn 11 $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 $0.1bn $1.3bn North America Latin America Number of IPO's Mexico, 7% United States, 93% 1,256 $10.2bn $163.1bn 773 $20.7bn $238.3bn 1,383 1,465 $16.7bn $291.4bn $87.4bn $256.9bn 1,236 $24.1bn $184.6bn 1,031 $14.0bn 1,162 1,143 1,052 $23.5bn $18.3bn $223.2bn $230.9bn $216.0bn $240.5bn 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. $7.9bn $0.3bn $48.1bn North America Latin America Number of FO's 181 Canada, 20% Other, 1% United States, 79% Source: Dealogic as of 31 March

12 Overview of IPO and FO activity in the Americas IPO activity in the Americas experienced a substantial decrease, resulting in the slowest quarter since Q IPO and FO activity in the Americas Q Q IPO activity Number of IPOs % sponsor-backed 28.4% 23.2% 24.1% 18.2% 9.1% Money raised $107.8bn $45.8bn $13.9bn $8.0bn $1.4bn % sponsor-backed 33.2% 34.4% 53.0% 21.0% 13.2% 2 Advanced metrics Free float % 32.6% 37.5% 36.5% 38.5% 42.6% Overallotment exercised (%) 77.7% 75.0% 84.7% 71.1% 60.0% % secondary shares 9.4% 6.7% 7.5% 3.4% 0.0% FO activity Number of FOs 1,143 1, Money raised $230.3bn $243.0bn $58.1bn $87.4bn $48.4bn 3 IPO pricing dynamics Post-IPO performance (median) 1 IPO activity in the Americas was weak, resulting in 11 IPOs raising a total of $1.4bn. This represents less than a fifth of the money raised in the first quarter last year 2 In contrast, FO activity in the Americas fell less dramatically, as 181 transactions raised $48.4bn in 3 IPO performance indicators display a positive return as equity markets bounced back in the second half of the quarter Main indices in the Americas 16% 18% 16% 21% 10% 8% 14% 7% 28% 13% 34% 41% 33% 42% 9% 12% 7% 9% 45% 18% 26% 25% 23% 27% Below range Bottom of range In range Top of range Above range 1.4% 0.0% 4.7% -0.1% % 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. 11.8% 4.7% N.A % 1-Day 1-Week 1-Month 3-Month Current 7.3% Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Dow Jones NASDAQ 100 S&P 500 Source: Dealogic, Bloomberg as of 31 March

13 Leading transactions 2016 in the Americas During the first quarter, IPOs raising in excess of $1bn were notably absent in the Americas 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 23-Feb-16 Silver Run Acquisition Financials NASDAQ In Range $0.5bn 88.9% 0.0% 2.1% 3.3% 3.5% 2-Feb-16 BeiGene Health Care NASDAQ In Range $0.2bn 24.1% 0.0% 18.0% 29.9% 22.1% 2-Feb-16 Editas Medicine Health Care NASDAQ In Range $0.1bn 19.0% 0.0% 13.8% 99.4% 115.9% 10-Feb-16 AveXis Health Care NASDAQ In Range $0.1bn 23.6% 0.0% -9.8% 4.3% 36.2% 12-Jan-16 Servicios Corporativos Javer Consumer Goods Mexican SE Below $0.1bn 34.0% 0.0% 0.5% -0.8% -5.7% 10-Mar-16 KLR Energy Acquisition Financials NASDAQ In Range $0.1bn 78.0% 0.0% 0.0% N.A. 0.6% 27-Jan-16 Nuveen Municipal 2021 Fnd Financials NYSE In Range $0.1bn 0.0% 0.0% 0.0% N.A. 0.0% 22-Mar-16 Corvus Pharmaceuticals Health Care NASDAQ In Range $0.1bn 23.0% 0.0% -5.0% N.A. -3.3% 2-Mar-16 Syndax Pharmaceuticals Health Care NASDAQ Below $0.1bn 27.7% 0.0% 0.1% N.A. 11.0% 10-Feb-16 Proteostasis Therapeutics Health Care NASDAQ Below $0.1bn 32.7% 0.0% -17.0% 19.3% 20.5% 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 Corp Oil & Gas Toronto Bought Deal $3.2bn 0.0% 7.3% N.A. 11.6% 28-Jan-16 Molson Coors Brewing Consumer Goods NYSE Accelerated Bookbuild $2.6bn 0.0% 4.6% -1.5% 11.2% 16-Mar-16 Baxalta Health Care NYSE Accelerated Bookbuild $2.4bn 100.0% 1.3% N.A. 7.0% 24-Feb-16 Enbridge Oil & Gas Toronto Bought Deal $1.7bn 0.0% 12.0% 21.8% 24.2% 5-Jan-16 Pioneer Natural Resources Oil & Gas NYSE Bought Deal $1.6bn 0.0% -0.7% 1.5% 20.3% 17-Feb-16 Devon Energy Corp Oil & Gas NYSE Bought Deal $1.5bn 0.0% 5.1% 46.1% 46.4% 27-Jan-16 Baxalta Health Care NYSE Accelerated Bookbuild $1.5bn 100.0% 0.9% -0.8% 2.3% 29-Feb-16 Marathon Oil Corp Oil & Gas NYSE Bought Deal $1.3bn 0.0% 4.1% 45.6% 45.6% 4-Feb-16 Hess Corp Oil & Gas NYSE Accelerated Bookbuild $1.1bn 0.0% -2.5% 24.1% 35.0% 5-Feb-16 Zimmer Biomet Health Care NYSE Bought Deal $1.1bn 100.0% -1.5% 2.9% 10.6% 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

14 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per sector in the Americas To weather the downturn in the oil market, Oil & Gas was by far the most active sector in terms of FO money raised ($17.4bn via 37 deals) 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 31 March

15 Top countries in terms of IPO activity in the Americas Only a single deal occurred outside of the US in the first quarter, namely the IPO of Servicios Corporativos Javer on the Mexican Stock Exchange IPO activity of top countries in the Americas $100.5bn 187 $61.0bn $77.8bn $38.8bn $1.3bn $6.8bn $5.0bn $1.7bn $1.9bn $0.1bn $3.0bn $5.5bn $5.4bn $4.9bn - $2.6bn $8.4bn $0.2bn $0.2bn 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 31 March

16 EMEA 16

17 FO money raised & # of deals IPO money raised & # of deals Money raised via IPOs and FOs in EMEA Activity in the first quarter was largely concentrated in the UK, which was responsible for 58% of the money raised via IPOs and 24% via FOs Money raised via IPOs and FOs in EMEA (10-year overview) Top countries $17.5bn Germany, 7% Sweden, 8% Other, 6% $12.8bn $3.5bn $118.9bn $5.2bn $15.6bn $2.0bn $3.3bn $69.4bn $68.8bn $2.5bn $40.4bn $2.1bn $33.3bn $37.2bn $21.0bn $0.7bn $8.0bn $15.9bn $4.0bn Europe Middle East & Africa Number of IPO's Saudi Arabia, 10% Denmark, 11% United Kingdom, 58% 1,047 $16.7bn $216.1bn 572 $28.8bn $226.3bn $9.7bn $318.8bn $12.4bn 624 $10.0bn 519 $9.3bn $134.6bn $124.4bn $115.1bn 632 $6.8bn $13.8bn $173.3bn $191.8bn $178.3bn 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. $12.0bn 129 $1.6bn $20.2bn Europe Middle East & Africa Number of FO's Other, 31% Netherlan ds, 6% Spain, 7% France, 11% United Kingdom, 24% Italy, 21% Source: Dealogic as of 31 March

18 Overview of IPO and FO activity in EMEA With European stock markets amongst the weakest performers globally, IPO performance suffered accordingly IPO and FO activity in EMEA Q Q IPO activity Number of IPOs % sponsor-backed 24.5% 24.5% 27.5% 33.3% 17.2% Money raised $81.7bn $71.7bn $17.5bn $20.5bn $4.7bn 2 % sponsor-backed 40.5% 42.5% 42.9% 56.5% 40.1% Advanced metrics Free float % 40.0% 43.4% 46.4% 45.1% 35.7% Overallotment exercised (%) 30.2% 37.8% 35.3% 46.2% 25.9% % secondary shares 31.9% 33.0% 32.0% 35.2% 38.6% FO activity Number of FOs Money raised $203.8bn $190.2bn $45.0bn $63.0bn $21.6bn 3 IPO pricing dynamics Post-IPO performance (median) 1 IPO activity in the EMEA region suffered from the global slowdown, as 29 deals raised $4.7bn in compared to 66 deals raising $20.5bn in Q Financial sponsor-backed deals continued to be a driver behind EMEA activity, with 5 deals raising 40% of total proceeds in the first quarter 3 Despite the further ECB easing undertaken in March, weak equity market performances led to somewhat lower returns for EMEA IPOs as compared to Q Main indices in EMEA 1% 1% 2% 11% 6% 13% 16% 20% 63% 57% 72% 25% 49% 44% 22% 24% 25% 25% 4% 5% 9% 6% Below range Bottom of range In range Top of range Above range 4.6% 4.6% 6.0% 8.9% 7.9% 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. 3.0% 17.0% N.A % 1-Day 1-Week 1-Month 3-Month Current 6.1% Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 CAC 40 DAX FTSE 100 Source: Dealogic, Bloomberg as of 31 March

19 Leading transactions 2016 in EMEA The concept of timing went out the window in the first quarter, as 5 of the biggest IPOs occurred during the market selloff of the first two weeks of February Top 10 largest IPOs 2016 in EMEA Pricing date Issuer name Issue Country Sector Exchange Filing range Offer price Pricing Money raised Free float Secondary shares (%) Performance 1-day 1-month Current 3-Feb-16 CYBG Financials LSE Bottom of range $0.6bn 25.0% 100.0% 6.7% 8.6% 15.8% 4-Mar-16 Metro Bank Financials LSE N.A N.A. $0.6bn 0.0% 0.0% 7.5% N.A. -6.0% 10-Feb-16 Scandinavian Tobacco Consumer Goods NASDAQ OMX C gen In range $0.5bn 35.9% 100.0% 0.0% 0.8% 5.2% 12-Feb-16 Countryside Properties Consumer Goods LSE Bottom of range $0.5bn 34.5% 57.2% 4.4% 2.6% 4.4% 16-Mar-16 Middle East Healthcare Health Care Saudi Arabia SE In range $0.5bn 23.1% 0.0% 0.0% N.A. 0.0% 9-Feb-16 Ascential Consumer Services LSE In range $0.4bn 37.5% 28.6% 0.0% 3.0% 3.0% 5-Feb-16 CMC Markets Financials LSE Bottom of range $0.3bn N.A. 93.2% 0.0% 0.3% 2.1% 21-Mar-16 Senvion Utilities Deutsche Börse Below range $0.3bn 25.0% 100.0% 0.0% N.A. 0.0% 17-Mar-16 Watkin Jones Consumer Goods London AIM N.A N.A. $0.2bn 51.5% 35.0% 1.0% N.A. 2.0% 17-Mar-16 Arabian Food Industries Consumer Goods Cairo SE Top of range $0.2bn 49.0% 100.0% 0.0% N.A. 0.0% 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% 3-Feb-16 LafargeHolcim Industrials SIX Swiss Exchange Accelerated Bookbuild $1.3bn 100.0% 6.5% 18.0% 24.8% 24-Feb-16 Auto Trader Group Consumer Services LSE Accelerated Bookbuild $1.2bn 100.0% -1.6% 5.9% 6.9% 5-Jan-16 NN Group Financials Euronext A dam Accelerated Bookbuild $1.1bn 100.0% 4.0% -7.3% -7.2% 4-Mar-16 Grupo FCC Industrials Bolsa de Madrid Rights Offer $0.8bn 0.0% 9.8% N.A. 26.4% 16-Feb-16 Total Oil & Gas Euronext Paris Accelerated Bookbuild $0.7bn 100.0% 3.4% 10.1% 5.3% 13-Jan-16 Ferrovial Industrials Bolsa de Madrid Accelerated Bookbuild $0.6bn 100.0% 0.5% -7.9% -1.0% 5-Feb-16 Micro Focus International Technology LSE Accelerated Bookbuild $0.5bn 100.0% 5.8% 14.9% 23.1% 2-Mar-16 Marine Harvest Consumer Goods NASDAQ OMX Oslo Accelerated Bookbuild $0.5bn 100.0% 1.4% N.A. 9.0% 15-Mar-16 ISS Industrials NASDAQ OMX C gen Accelerated Bookbuild $0.4bn 100.0% 2.0% N.A. 9.1% 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 Similar to the Americas, listed Oil & Gas companies in EMEA proved to be the most active in terms of FO money raised ($5.5bn via 11 deals) 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 31 March

21 Top countries in terms of IPO activity in EMEA The UK remained the most active country within the EMEA region, with 14 IPOs raising a combined total of $2.7bn IPO activity of top countries in EMEA $27.9bn $21.1bn $19.8bn $6.6bn $2.7bn - $0.5bn $2.3bn $0.2bn $0.5bn $1.5bn $0.5bn $6.7bn $1.1bn $0.5bn - $0.7bn $4.0bn $5.9bn $0.4bn 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 31 March

22 Asia-Pacific 22

23 FO money raised & # of deals IPO money raised & # of deals Money raised via IPOs and FOs in Asia-Pacific Despite unrest in Chinese financial markets, Asia-Pacific remained the most active global region, with 101 IPOs raising $8.1bn Money raised via IPOs and FOs in Asia-Pacific (10-year overview) Top countries $8.0bn $8.0bn $175.3bn $1.5bn $2.5bn $17.0bn $6.4bn $85.2bn $91.0bn $1.5bn $10.2bn $68.3bn $51.3bn $66.1bn $77.6bn $1.6bn $48.2bn $0.1bn $30.2bn $8.0bn Asia Australasia Number of IPO's South Korea, 6% Japan, 15% China, 25% Other, 9% Hong Kong, 45% 1, ,381 1,350 $63.5bn $23.5bn 1, ,263 1,325 1,483 $41.6bn 236 Japan, 5% South Korea, 7% Other, 7% $37.8bn $22.3bn $17.6bn $20.7bn $23.5bn $183.5bn $206.8bn $218.6bn $148.1bn $35.4bn $113.8bn $135.1bn $139.6bn $160.1bn $1.3bn $65.6bn $44.3bn Hong Kong, 8% China, 73% 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 31 March

24 Overview of IPO and FO activity in Asia-Pacific Financial sponsors nearly disappeared from the radar in the first quarter, as just one IPO raised a meagre $23m on the KOSDAQ IPO and FO activity in Asia-Pacific Q Q IPO activity Number of IPOs % sponsor-backed 8.9% 6.0% 5.5% 7.0% 1.0% Money raised $83.1bn $84.0bn $19.3bn $13.8bn $8.1bn % sponsor-backed 20.5% 16.6% 11.4% 12.1% 0.3% 2 Advanced metrics Free float % 29.8% 27.6% 28.3% 26.8% 26.7% Overallotment exercised (%) 23.0% 17.3% 20.6% 17.7% 18.2% % secondary shares 17.4% 13.4% 23.5% 12.9% 13.7% FO activity Number of FOs 1,325 1, Money raised $182.4bn $260.1bn $35.1bn $57.5bn $45.6bn 3 IPO pricing dynamics Post-IPO performance (median) 1 Via 101 IPOs, $8.1bn was raised in. This compares to $13.8bn raised via 142 IPOs in Q1 2015, a drop of 41% in terms of money raised 2 FO activity stood at $45.6bn via 236 transactions during. Though underperforming the activity in Q1 2015, it still exceeded figures from Q IPO performance was strong, as equity markets recovered quickly following the February selloff. However, as compared to the extraordinary Q returns, IPO performance was lagging Main indices in Asia-Pacific 3% 3% 3% 1% 25% 27% 20% 21% 60% 56% 69% 70% 44% 40% 9% 11% 3% 3% 7% 7% 14% 1% 1% 1% Below range Bottom of range In range Top of range Above range 44.0% 40.0% 94.4% 29.7% % 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. 39.1% 180.0% N.A % 1-Day 1-Week 1-Month 3-Month Current 32.2% Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Hang Seng Nikkei 225 SENSEX Source: Dealogic, Bloomberg as of 31 March

25 Leading transactions 2016 in Asia-Pacific The three largest IPOs globally occurred in the Asia-Pacific region, accounting for a quarter of the total money raised this quarter 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% N.A. N.A. -0.8% 20-Mar-16 Bank of Tianjin Financials HKEx Bottom of range $0.9bn 16.5% 9.1% N.A. N.A. -0.1% 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% 8.7% 8-Jan-16 Virscend Consumer Services HKEx In range $0.3bn 28.0% 0.0% 1.3% 5.4% 40.4% 6-Jan-16 Ronshine China Holdings Financials HKEx Bottom of range $0.2bn 25.2% 0.0% 4.9% 6.5% 6.9% 17-Mar-16 KinLong Hardware Products Industrials Shenzhen SE N.A Fixed price $0.2bn 25.0% 17.2% 44.0% N.A. 74.3% 2-Mar-16 Jiayuan Inter. Group Financials HKEx Top of range $0.2bn 28.8% 0.0% 4.0% N.A. 2.8% 27-Jan-16 Southern Publishing & Media Consumer Services Shanghai SE In range $0.2bn 20.6% 0.0% 44.1% 222.4% 211.4% 16-Mar-16 Tongyu Communication Technology Shenzhen SE N.A Fixed price $0.1bn 25.0% 20.0% 44.0% N.A. 91.6% 26-Jan-16 Eastern Pioneer Driving School Financials Shanghai SE In Range $0.1bn 11.9% 0.0% 44.0% 129.2% 143.9% 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 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% 7.3% 25-Mar-16 Guangzhou Friendship Group Consumer Services Shenzhen SE Cash Placing $1.5bn 0.0% 182.5% N.A % 15-Feb-16 Samsung Engineering Industrials Shanghai SE 7.7k 7.7k Rights Offer $1.1bn 0.0% 36.9% 17.4% 33.8% 25-Jan-16 Fortune Land Development Industrials Shanghai SE N.A Cash Placing $1.1bn 0.0% 7.7% 6.1% 7.2% 5-Feb-16 Inner Mongolia Xishui Strong Industrials Shanghai SE Cash Placing $1.1bn 0.0% 0.0% N.A. 4.0% 4-Jan-16 Shenzhen Overseas Chin. Town Consumer Services Shenzhen SE N.A Cash Placing $0.9bn 0.0% 16.6% -2.2% 2.9% 29-Jan-16 Oceanwide Holdings Financials Shenzhen SE N.A Cash Placing $0.9bn 0.0% 8.6% 7.7% 20.1% 11-Jan-16 Junzheng Energy & Chem. Grp Basic Materials Shanghai SE N.A Cash Placing $0.7bn 0.0% -6.1% -19.5% -15.8% 24-Feb-16 NTPC Utilities Bombay SE; India SE N.A Acce.Bookbuild $0.7bn 100.0% -2.9% 4.3% 5.5% 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

26 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per sector in Asia-Pacific Financials were most active in terms of IPO money raised in the first quarter ($4.1bn via 13 IPOs), while Industrials led FO activity (raising $13.5bn via 54 FOs) 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 31 March

27 Top countries in terms of IPO activity in Asia-Pacific IPO activity was spread in the Asia-Pacific region, with Hong Kong overtaking China in terms of money raised in the first quarter IPO activity of top countries in Asia-Pacific $8.0bn 92 $18.9bn $28.7bn $23.7bn 18 $3.6bn 142 $14.5bn $12.9bn $25.7bn 26 $2.0bn $12.7bn $10.2bn $11.6bn $15.6bn $1.2bn $1.3bn $1.2bn $4.0bn $3.5bn $0.5bn 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 31 March

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