Global IPO Watch Q3 2018

Transcription

1 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. Jan-Willem de Groot (author) Martin Coenen Ross Hunter Nadja Picard David Ethridge Derek Thomson Kennedy Liu Geoffrey Tang

2 Basis of preparation The 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 PIPO s 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. If a transaction is executed in two or more regions, the money raised is also attributed to all regions. Industry classification is based on the FTSE Russell Industry Classification Benchmark. Index performance is based on pricing data extracted from Bloomberg.

3 FO money raised & # of deals IPO money raised & # of deals Global money raised via IPOs and FOs IPO proceeds exceed those of 2017, as equity markets remain attractive and corporate earnings strong Global money raised via IPOs and FOs (10-year overview) Top countries ,258 $299.1bn 1, ,167 1,184 $274.3bn 1,013 1, Other, 30% United States, 31% $121.2bn $178.8bn $142.5bn $195.6bn $206.9bn $142.5bn $208.8bn $160.6bn United Kingdom, 5% Germany, 6% China, 10% Hong Kong, 18% 3,554 3,562 2,902 2,508 3,046 3,178 3,322 3,186 3,562 2,259 $841.8bn $642.0bn $479.9bn $509.3bn $588.2bn $613.5bn $685.8bn $551.3bn $620.2bn $388.1bn Other, 33% United States, 36% Japan, 5% United Kingdom, 8% Hong Kong, 7% China, 11% 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. Source: Dealogic as of 30 September

4 1 2 2 Overview of global IPO and FO activity The third quarter lived up to its reputation of being the quietest of the year, with 261 IPOs raising $46.8bn in proceeds Global IPO and FO activity 1 In 261 IPOs raised $46.8bn. This represents a decrease of 5% in terms of proceeds and a 24% drop in the number of deals compared to last year Q Q IPO activity Number of IPOs 1,013 1, , % sponsor-backed 9.6% 9.2% 10.9% 9.1% 8.5% 9.2% 6.1% 6.9% Money raised $142.5bn $208.8bn $88.0bn $141.4bn $160.6bn $38.3bn $49.2bn $46.8bn % sponsor-backed 22.8% 22.2% 24.6% 23.2% 16.2% 18.3% 12.6% 15.1% Advanced metrics Free float % 31.3% 32.0% 32.1% 32.1% 33.0% 32.1% 33.0% 32.8% Overallotment exercised (%) % 25.2% 28.7% 24.8% 31.4% 26.8% 21.9% 26.9% % secondary shares 15.1% 14.6% 16.2% 13.4% 14.5% 12.2% 12.0% 10.4% FO activity Number of FOs 3,186 3,562 2,319 2,559 2, Money raised $551.3bn $620.2bn $425.2bn $475.9bn $388.1bn $151.9bn $143.5bn $112.7bn 2 FS-backed IPOs accounted for 15% of proceeds but only 7% of the number of IPOs. 3 The performance of IPOs is lower than last year s IPOs, mainly due to the significant drop in the number of IPOs in China, where transactions have historically performed extremely well. 4 US stock markets have recently continued their record winning streak. IPO pricing dynamics 3 Post-IPO performance (median) 4 Global indices 3% 4% 3% 4% 6% % 22% 27% 21% 23% 16.3% 17.8% 20.3% 24.7% % 53% 48% 55% 47% 14% 14% 15% 13% 17% 7% 6% 7% 7% 6% Below range Bottom of range In range Top of range Above range 5.0% 5.0% 4.2% 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. 1) Overallotment exercised (%) presents the percentage of IPOs in which the overallotment option has been exercised (either partly or in full). 2.4% 7.0% 1-Day 1-Week 1-Month 3-Month Current 2.0% Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 FTSE 100 Hang Seng S&P 500 Source: Dealogic, Bloomberg as of 30 September

5 Leading transactions 2018 With proceeds of $7.5bn, China Tower becomes the biggest global IPO in 2 years Top 10 largest IPOs 2018 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 1-Aug-18 China Tower Technology HKEX Bottom of range $7.5bn 27.1% 0.0% 0.0% -8.7% -9.5% 29-Jun-18 Xiaomi Technology HKEX Bottom of range $5.4bn 11.2% 34.2% -1.2% 0.8% -8.8% 15-Mar-18 Siemens Healthineers Health Care Deutsche Börse In range $5.2bn 15.0% 100.0% 7.9% 16.2% 35.3% 23-May-18 Foxconn Industrial Internet Technology Shanghai SE N/A N/A $4.3bn 10.0% 0.0% 44.0% 25.1% 3.4% 13-Sep-18 Meituan Dianping Consumer Services HKEX In range $4.2bn 8.7% 0.0% 5.3% N/A -0.4% 9-May-18 AXA Equitable Financials NYSE Below range $3.2bn 28.1% 100.0% 1.7% 5.3% 7.3% 23-Jan-18 PagSeguro Digital Industrials NYSE Above range $2.6bn 38.0% 46.3% 35.8% 50.6% 28.7% 28-Mar-18 iqiyi Consumer Services NASDAQ In range $2.4bn 19.0% 0.0% -13.6% -0.1% 50.4% 11-Jul-18 Viva Energy Oil & Gas ASX Bottom of range $2.0bn 54.5% 100.0% 0.0% -2.8% -8.8% 25-Jul-18 Pinduoduo Consumer Services NASDAQ Top of range $1.7bn 8.3% 0.0% 40.5% -9.4% 38.4% Top 10 largest FOs 2018 Pricing date Issuer name Issuer country Sector Exchange Filing range Offer price Deal type Money raised Secondary shares (%) Performance 1-day 1-month Current 4-Jul-18 Agricultural Bank of China Financials Shanghai SE N/A 3.97 FO - Cash Placing $15.0bn 0.0% -15.4% -11.1% -2.0% 22-Mar-18 Tencent Technology HKEX FO - Accelerated Bookbuild $9.8bn 100.0% 3.7% -1.2% -20.2% 20-Jun-18 Bayer Health Care Deutsche Börse FO - Rights Offer $7.0bn 0.0% 19.0% 13.6% -5.5% 10-Apr-18 Hilton Worldwide Consumer Services NYSE FO - Accelerated Bookbuild $4.8bn 100.0% 9.1% 13.4% 10.7% 11-Sep-18 Yahoo Japan Technology Tokyo SE FO - Accelerated Bookbuild $4.3bn 100.0% 2.5% N/A 15.5% 5-Jun-18 Royal Bank of Scotland Financials LSE FO - Accelerated Bookbuild $3.3bn 100.0% -1.9% -7.6% -7.8% 8-May-18 Canadian Natural Resources Oil & Gas NYSE FO - Bought Deal $3.3bn 100.0% 0.5% -0.6% -4.2% 4-Jan-18 Sempra Energy Utilities NYSE FO - Accelerated Bookbuild $2.9bn 0.0% 1.4% -1.3% 6.3% 1-May-18 Centene Health Care NYSE FO - Accelerated Bookbuild $2.9bn 0.0% 6.3% 9.4% 34.7% 18-Apr-18 Renesas Electronics Technology Tokyo SE FO - Fully Marketed $2.7bn 100.0% 3.4% -2.0% -34.4% 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, Bloomberg as of 30 September

6 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per region EMEA is suffering disproportionately from geopolitical unrest, as IPO proceeds dropped by 68% and the number of deals by 32% in compared to last year Americas EMEA Asia-Pacific $109.5bn $50.9bn $30.8bn $67.4bn $60.2bn $81.7bn $71.7bn $35.7bn $55.2bn $34.1bn $83.1bn $84.3bn $77.3bn $86.2bn $66.4bn ,144 1,054 1,071 $230.3bn $243.3bn $219.7bn 1,235 $214.7bn 831 $157.2bn $204.5bn $190.8bn $119.9bn 944 $189.8bn 590 $92.0bn 1,325 1,478 1,368 1,393 $259.7bn $215.0bn $216.8bn $182.4bn 847 $139.3bn 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 September

7 Top exchanges globally based on money raised in 2018 The top 5 most active exchanges accounted for approximately 60% of money raised via IPOs and FOs in 2018 Money raised and number of IPOs per Exchange Top Exchanges HKEX, 17% Other, 38% $21bn $14bn $29bn $21bn $21bn $27bn $15bn $35bn $27bn $16bn $18bn $10bn $9bn $21bn $10bn NASDAQ (Global), 16% HKEX NASDAQ (Global) NYSE Shanghai SE LSE Group LSE Group, 6% Shanghai SE, 6% NYSE, 16% Money raised and number of FOs per Exchange Top Exchanges $118bn$115bn $88bn Other, 41% NYSE, 22% $73bn $75bn $61bn $40bn $55bn $33bn $60bn $50bn $27bn $20bn $27bn $27bn NASDAQ (Global), 15% NYSE NASDAQ (Global) LSE Group Shanghai SE 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. HKEX LSE Group, 8% HKEX, 7% Shanghai SE, 7% Source: Dealogic as of 30 September

8 FO money raised & # of deals IPO money raised & # of deals Global IPO and FO activity per sector With IPO proceeds of $27.5bn this year, the Technology sector takes a solid second position behind Financials 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 September

9 IPO money raised & # of deals Financial sponsor-backed IPO activity globally The epicentre of FS-backed IPO activity remained in the Americas, where half of the top 10 largest FS-backed IPOs have taken place this year FS-backed activity Americas FS-backed activity EMEA FS-backed activity Asia-Pacific 96 $35.8bn $23.7bn $30.7bn $30.7bn $15.6bn $11.5bn $16.0bn $16.3bn $15.5bn $8.0bn $17.0bn $14.2bn $4.7bn $7.0bn $2.0bn Top 10 largest FS-backed IPOs 2018 globally Global FS-backed IPOs (by money raised) Pricing date Issuer name Exchange Pricing Money raised 1-day Performance 1-month Current Sponsorbacked; 22% Sponsorbacked; 16% 28-Sep-18 SIG Combibloc SIX Swiss Exchange In range $1.5bn 9.3% N/A 9.3% 18-Jan-18 ADT NYSE Below range $1.5bn -11.5% -17.3% -32.9% 12-Jun-18 Adyen Euronext Amsterdam Top of range $1.1bn 89.6% 141.3% 192.9% 23-May-18 GreenSky NASDAQ Top of range $1.0bn 1.6% 5.0% -21.7% 18-Sep-18 Haidilao International HKEX Top of range $1.0bn 0.1% N/A 0.0% 1-Aug-18 Cushman & Wakefield NYSE In range $0.9bn 4.8% 3.9% -0.1% 24-Jan-18 Gates Industrial NYSE In range $0.8bn -2.6% -10.2% 2.6% 18-Jan-18 Americold Realty Trust NYSE Top of range $0.8bn 11.1% 12.4% 56.4% 3-May-18 CEVA Logistics SIX Swiss Exchange Bottom of range $0.8bn -5.8% -7.9% -32.0% 4-May-18 Vivo Energy LSE; JSE In range $0.8bn 4.6% 3.0% -21.8% Not Sponsorbacked; 78% (9%) sponsor-backed IPOs vs 1,378 (91%) non-sponsor-backed IPOs Not Sponsorbacked; 84% 74 (9%) sponsor-backed IPOs vs 796 (91%) 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 30 September

10 Volatility versus IPO activity Despite an unfolding trade war and increasing chances of a no-deal Brexit, volatility came down again in Money raised via IPOs versus volatility Global money raised via IPOs VIX (average per quarter) $100bn $75bn $50bn $25bn $0bn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 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 Q2 Q Note: included deals > $5m, excluding PIPO s and transactions on Over-The-Counter exchanges. Source: Dealogic, Bloomberg as of 30 September

11 Americas 11

12 FO money raised & # of deals IPO money raised & # of deals Money raised via IPOs and FOs in the Americas As the US economy powers ahead, IPO proceeds rose by 27% and the number of deals by 18% in compared to last year Money raised via IPOs and FOs in the Americas (10-year overview) Top countries Other, 4% Brazil, 3% Mexico, 9% $14.1bn $33.3bn $11.8bn $61.2bn $7.0bn $54.0bn $13.6bn $63.9bn $14.4bn $83.1bn $3.7bn $105.8bn $7.1bn $43.8bn $4.3bn $26.8bn $14.2bn $54.9bn $8.0bn $52.2bn North America Latin America Number of IPO's United States, 84% 1,383 1,469 1,237 1,032 1,162 1,144 1,054 1,071 1, Other, 2% Canada, 8% $16.7bn $87.4bn $291.4bn $257.1bn $24.1bn $184.6bn $14.0bn $23.5bn $18.3bn $7.9bn $223.3bn $230.9bn $216.0bn $240.8bn $8.1bn $211.6bn $13.3bn $202.1bn $3.7bn $153.5bn North America Latin America Number of FO's United States, 90% 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. Source: Dealogic as of 30 September

13 Overview of IPO and FO activity in the Americas A robust pipeline of unicorn IPOs, record high equity markets and solid corporate earnings will propel the Americas into a strong fourth quarter IPO and FO activity in the Americas Q Q IPO activity Number of IPOs % sponsor-backed 22.8% 24.3% 22.8% 27.2% 18.3% 22.9% 19.7% 13.9% Money raised $30.8bn $67.4bn $19.2bn $47.4bn $60.2bn $10.2bn $12.5bn $15.9bn 2 % sponsor-backed 37.2% 35.2% 32.5% 43.3% 26.7% 25.9% 31.1% 25.1% Advanced metrics Free float % 33.6% 37.3% 33.1% 38.0% 35.8% 33.7% 42.4% 33.1% Overallotment exercised (%) % 76.1% 74.7% 76.1% 70.2% 80.0% 69.4% 59.4% % secondary shares 8.2% 10.2% 7.9% 9.1% 6.7% 9.4% 9.4% 6.1% FO activity Number of FOs 1,071 1, Money raised $219.7bn $214.7bn $170.9bn $170.2bn $157.2bn $57.2bn $52.0bn $46.8bn 1 In 72 IPOs raised $15.9bn. This represents an increase of 27% in terms of proceeds and 18% in the number of deals compared to last year. 2 FS-backed IPOs in the Americas accounted for 57% of global FS-backed proceeds and 56% of global FS-backed deals. 3 The performance of IPOs in the Americas lies above the other two regions, helped by an across the board rise in equity markets. 4 Especially the technology-heavy NASDAQ 100 has performed well, rising by 19%. IPO pricing dynamics 11% 11% 11% 9% 14% 12% 9% 9% 15% 13% 40% 47% 39% 49% 11% 26% 15% 11% 13% 20% 24% 20% 45% 17% 12% Below range Bottom of range In range Top of range Above range 3 3.1% Post-IPO performance (median) 2.1% 2.6% 1.4% 3.5% Global indices 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. 1) Overallotment exercised (%) presents the percentage of IPOs in which the overallotment option has been exercised (either partly or in full). 2.2% 4.3% 2.1% 1.4% 1-Day 1-Week 1-Month 3-Month Current 2.8% Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Dow Jones NASDAQ 100 S&P 500 Source: Dealogic, Bloomberg as of 30 September

14 Leading transactions 2018 in the Americas Out of the three largest IPOs in the Americas in, two were cross-border listings Top 10 largest IPOs 2018 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 9-May-18 AXA Equitable Financials NYSE Below range $3.2bn 28.1% 100.0% 1.7% 5.3% 7.3% 23-Jan-18 PagSeguro Digital Industrials NYSE Above range $2.6bn 38.0% 46.3% 35.8% 50.6% 28.7% 28-Mar-18 iqiyi Consumer Services NASDAQ In range $2.4bn 19.0% 0.0% -13.6% -0.1% 50.4% 25-Jul-18 Pinduoduo Consumer Services NASDAQ Top of range $1.7bn 8.3% 0.0% 40.5% -9.4% 38.4% 19-Sep-18 Elanco Animal Health Consumer Goods NYSE Above range $1.7bn 20.3% 0.0% 50.0% N/A 45.4% 23-Mar-18 Fibra E - Grupo Aeroportuari 1 Industrials Mexican SE In range $1.5bn 15.4% 0.0% 0.0% 0.0% 0.0% 18-Jan-18 ADT Industrials NYSE Below range $1.5bn 14.0% 0.0% -11.5% -17.3% -32.9% 20-Sep-18 Farfetch Consumer Services NYSE Above range $1.0bn 20.7% 24.0% 42.3% N/A 36.2% 23-Apr-18 Hapvida Participacoes 2 Health Care BOVESPA In range $1.0bn 23.2% 23.3% 22.8% 29.8% 2.1% 23-May-18 GreenSky Inc Industrials NASDAQ Top of range $1.0bn 23.0% 0.0% 1.6% 5.0% -21.7% Top 10 largest FOs 2018 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 10-Apr-18 Hilton Worldwide Consumer Services NYSE FO - Accelerated Bookbuild $4.8bn 100.0% 9.1% 13.4% 10.7% 8-May-18 Canadian Natural Resources Oil & Gas NYSE FO - Bought Deal $3.3bn 100.0% 0.5% -0.6% -4.2% 4-Jan-18 Sempra Energy Utilities NYSE FO - Accelerated Bookbuild $2.9bn 0.0% 1.4% -1.3% 6.3% 1-May-18 Centene Health Care NYSE FO - Accelerated Bookbuild $2.9bn 0.0% 6.3% 9.4% 34.7% 25-Sep-18 CenterPoint Energy Utilities NYSE FO - Accelerated Bookbuild $1.9bn 0.0% 0.0% N/A 1.5% 31-Jul-18 HDFC Bank Financials NYSE FO - Accelerated Bookbuild $1.8bn 0.0% -0.3% -2.6% -9.5% 13-Aug-18 First Data Industrials NYSE FO - Accelerated Bookbuild $1.7bn 100.0% 0.8% 8.4% 3.0% 8-May-18 PPL Utilities NYSE FO - Bought Deal $1.7bn 0.0% 3.3% -4.5% 8.4% 13-Sep-18 International Flavors & Fragrances Basic Materials NYSE FO - Accelerated Bookbuild $1.7bn 0.0% 5.4% N/A 6.8% 6-Mar-18 Duke Energy Utilities NYSE FO - Bought Deal $1.6bn 0.0% 0.3% 4.2% 6.7% 1) Fibra E - Grupo Aeroportuario de la Ciudad de Mexico, 2) Hapvida Participacoes e Investimentos SA, 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, Bloomberg as of 30 September

15 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per sector in the Americas The Health Care sector has been especially active in the FO market this year, with proceeds already at $33.8bn via 291 transactions 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 September

16 Top countries in terms of IPO activity in the Americas Elections in Mexico and Brazil have not tempered investor enthusiasm, as they make up the second and third place, respectively, in terms of IPO proceeds in the Americas IPO activity of top countries in the Americas $100.5bn $38.9bn $51.5bn $50.9bn $26.1bn $3.5bn $6.9bn $3.6bn $6.4bn $5.3bn $0.2bn $0.2bn $0.2bn $6.4bn $2.0bn $5.4bn $4.9bn $0.7bn $4.3bn $1.8bn 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 money raised in Source: Dealogic as of 30 September

17 EMEA 17

18 FO money raised & # of deals IPO money raised & # of deals Money raised via IPOs and FOs in EMEA With Ghana and Saudi Arabia making it into the top 5 most active countries this quarter, the share of Middle Eastern and African IPOs grew in EMEA Money raised via IPOs and FOs in EMEA (10-year overview) Top countries Other, 32% Germany, 25% $12.9bn $3.5bn $7.1bn $5.2bn $2.0bn $3.3bn $69.4bn $68.8bn $2.4bn $3.6bn $40.4bn $2.1bn $33.3bn $37.2bn $48.1bn $2.5bn $33.4bn $31.7bn $8.0bn $15.9bn Europe Middle East & Africa Number of IPO's Italy, 6% Netherlands, 6% Switzerland, 9% United Kingdom, 22% $9.9bn Other, 33% United Kingdom, 32% $318.8bn $12.4bn $10.0bn $9.3bn $135.2bn $132.4bn $115.1bn $6.8bn $13.9bn $12.2bn $174.2bn $192.4bn $179.1bn $10.3bn $110.5bn 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. $13.1bn $176.8bn $9.2bn $82.8bn Europe Middle East & Africa Number of FO's South Africa, 4% Netherlands, 4% France, 7% Germany, 20% Source: Dealogic as of 30 September

19 Overview of IPO and FO activity in EMEA Investor enthusiasm was dampened in EMEA in, despite continued economic growth and monetary easing IPO and FO activity in EMEA Q Q IPO activity Number of IPOs % sponsor-backed 22.1% 17.1% 27.0% 15.5% 12.7% 21.1% 8.8% 12.8% Money raised $35.7bn $55.2bn $23.2bn $36.8bn $34.1bn $4.9bn $14.8bn $4.7bn 2 % sponsor-backed 45.6% 28.1% 55.4% 21.8% 23.4% 57.6% 8.0% 39.6% Advanced metrics Free float % 38.9% 43.7% 40.2% 45.3% 41.6% 54.1% 54.7% 35.9% Overallotment exercised (%) % 26.3% 33.6% 28.0% 24.4% 26.3% 21.2% 13.5% % secondary shares 36.8% 32.8% 38.4% 31.9% 30.2% 31.3% 29.0% 23.8% FO activity Number of FOs Money raised $119.9bn $189.8bn $90.1bn $156.1bn $92.0bn $24.6bn $37.7bn $19.1bn 1 In 39 IPOs raised $4.7bn. This represents a drop of 68% in terms of proceeds and a drop of 32% in the number of deals compared to last year. 1 A pipeline of jumbo IPOs in the UK, Spain and the Netherlands could help EMEA achieve a strong end to FS-backed IPOs in EMEA accounted for 26% of global FS-backed proceeds and 28% of global FS-backed deals. 3 The post-ipo return of 0.0% for 2018 IPOs is still outperformance, as some market indices are in negative territory for the year. IPO pricing dynamics 3 Post-IPO performance (median) Global indices 0% 2% 0% 10% 10% 10% 2% 11% 6% 1% 3.1% 2.0% 2.0% 2.0% 1.8% 1.3% 2.4% % 68% 62% 67% 67% 0.0% 0.0% % % 18% 27% 17% 17% 2% 3% 1% 3% 9% Day 1-Week 1-Month 3-Month Current 75 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Below range Bottom of range In range Top of range Above range CAC 40 DAX FTSE 100 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. 1) Overallotment exercised (%) presents the percentage of IPOs in which the overallotment option has been exercised (either partly or in full). Source: Dealogic, Bloomberg as of 30 September

20 Leading transactions 2018 in EMEA Adyen has made it into the top 10 largest IPO and FO transactions this year, as pre-ipo shareholders could cash in on the stock s gain thanks to a waiver of the lock-up Top 10 largest IPOs 2018 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 15-Mar-18 Siemens Healthineers Health Care Deutsche Börse In range $5.2bn 15.0% 100.0% 7.9% 16.2% 35.3% 22-Mar-18 DWS Financials Deutsche Börse In range $1.6bn 20.5% 100.0% 1.8% -4.5% -26.8% 28-Sep-18 SIG Combibloc Industrials SIX Swiss Exchange In range $1.5bn 41.2% 20.5% 9.3% N/A 9.3% 12-Jun-18 Adyen Industrials Euronext Amsterdam Top of range $1.1bn 13.4% 100.0% 89.6% 141.3% 192.9% 21-Mar-18 ELKEM Basic Materials Oslo Børs Bottom of range $0.9bn 41.8% 19.2% -4.1% 7.2% 40.2% 3-May-18 CEVA Logistics Industrials SIX Swiss Exchange Bottom of range $0.8bn 72.2% 0.0% -5.8% -7.9% -32.0% 4-May-18 Vivo Energy Consumer Services LSE; JSE In range $0.8bn 30.5% 100.0% 4.6% 3.0% -21.8% 10-May-18 Avast Technology LSE Bottom of range $0.8bn 25.3% 75.5% -1.6% -13.8% 13.4% 2-Feb-18 Metrovacesa Financials BME Below range $0.8bn 25.8% 100.0% -3.0% -9.1% -30.3% 29-Jan-18 SPAXS Financials Borsa Italiana In range $0.7bn 100.0% 0.0% 2.0% 3.6% -3.0% Top 10 largest FOs 2018 in EMEA Pricing date Issuer name Issuer country Sector Exchange Filing range Offer price Deal type Money Secondary raised shares (%) Performance 1-day 1-month Current 20-Jun-18 Bayer Health Care Deutsche Börse FO - Rights Offer $7.0bn 0.0% 19.0% 13.6% -5.5% 5-Jun-18 Royal Bank of Scotland Financials LSE FO - Accelerated Bookbuild $3.3bn 100.0% -1.9% -7.6% -7.8% 4-May-18 Covestro Basic Materials Deutsche Börse FO - Accelerated Bookbuild $2.6bn 100.0% -1.3% 4.6% -7.5% 20-Feb-18 Cineworld Consumer Services LSE FO - ABB; RO $2.5bn 0.0% 53.4% 51.7% 101.0% 11-Jan-18 Covestro Basic Materials Deutsche Börse FO - Accelerated Bookbuild $2.2bn 100.0% 2.6% -3.0% -19.0% 13-Sep-18 Adyen Industrials Euronext Amsterdam FO - Accelerated Bookbuild $1.9bn 100.0% -3.0% N/A 4.9% 11-Jun-18 Dubai Islamic Bank Financials Dubai FM FO - Rights Offer $1.4bn 0.0% 66.9% 59.5% 73.3% 25-Jul-18 DS Smith Industrials LSE FO - ABB; RO $1.4bn 0.0% 43.7% 45.1% 36.7% 10-Jul-18 Phoenix Financials LSE FO - ABB; RO $1.3bn 0.0% 30.6% 34.3% 30.5% 3-May-18 Vonovia Financials Deutsche Börse FO - Accelerated Bookbuild $1.2bn 0.0% 7.1% 4.2% 9.9% 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, Bloomberg as of 30 September

21 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per sector in EMEA Especially in terms of FO activity, Financials are yet again dominant in EMEA 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 September

22 Top countries in terms of IPO activity in EMEA Despite 13 IPOs raising over $2.2bn in, the UK was not able to outrank Germany with regard to IPO proceeds in 2018 IPO activity of top countries in EMEA $27.9bn $19.8bn $14.8bn $4.7bn $7.9bn $5.8bn $3.2bn $9.0bn $7.6bn $8.0bn $1.7bn $2.6bn $0.9bn $4.6bn $3.2bn 9.1 $7.5bn $3.2bn $0.8bn $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 money raised in Source: Dealogic as of 30 September

23 Asia-Pacific 23

24 FO money raised & # of deals IPO money raised & # of deals Money raised via IPOs and FOs in Asia-Pacific The epicentre of activity in Asia-Pacific has been Hong-Kong in, attracting a large number of billion+ dollar Chinese IPOs Money raised via IPOs and FOs in Asia-Pacific (10-year overview) Top countries $2.5bn $68.3bn $8.0bn 761 $175.3bn 620 $1.5bn $91.0bn $1.5bn $10.2bn $51.3bn $48.2bn $17.0bn $6.5bn $5.8bn $4.8bn $66.2bn $77.8bn $71.5bn $81.5bn 461 $4.5bn $62.0bn Other, 9% Australia, 7% Japan, 7% India, 8% Hong Kong, 44% Asia Australasia Number of IPO's China, 25% 1,381 1,352 $63.5bn $23.6bn $183.4bn $206.8bn 1, $23.5bn $17.6bn $115.1bn $135.1bn 1,265 1,325 $20.7bn $22.3bn $140.5bn $160.1bn 1,478 1,368 1,393 $41.5bn $17.8bn $22.1bn $218.2bn $197.7bn $194.7bn 847 $17.3bn $122.0bn South Korea, 7% Australia, 12% Other, 16% China, 32% Asia Australasia Number of FO's Hong Kong, 19% 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. Japan, 14% Source: Dealogic as of 30 September

25 Overview of IPO and FO activity in Asia-Pacific The average deal size of Asian Pacific IPOs has more than doubled from $83m in 2017 to $144m in 2018 IPO and FO activity in Asia-Pacific Q Q IPO activity Number of IPOs % sponsor-backed 3.4% 2.4% 3.3% 2.3% 2.0% 4.0% 1.8% 2.0% Money raised $77.3bn $86.2bn $47.0bn $57.2bn $66.4bn $24.6bn $21.8bn $26.2bn 2 % sponsor-backed 6.1% 8.2% 5.6% 7.3% 3.1% 6.3% 5.0% 4.6% Advanced metrics Free float % 28.9% 27.3% 29.4% 27.2% 28.5% 29.3% 26.1% 32.0% Overallotment exercised (%) % 12.6% 17.7% 12.2% 16.1% 15.0% 11.7% 15.0% % secondary shares 10.9% 10.1% 11.8% 9.0% 12.3% 10.8% 8.5% 9.1% FO activity Number of FOs 1,368 1,393 1, Money raised $215.0bn $216.8bn $167.4bn $150.0bn $139.3bn $70.2bn $53.8bn $46.9bn 1 In 150 IPOs raised $26.2bn. This represents an increase of 20% in terms of proceeds but a 34% drop in the number of deals compared to last year. 2 FS-backed IPOs in Asia-Pacific accounted for 17% of global FS-backed proceeds and 17% of global FS-backed deals. 3 The stricter oversight of IPOs in China by the regulator is translating into fewer IPOs in Mainland China, and reduces post-ipo returns in Asia-Pacific, at 0.6% for 2018 IPOs, compared to 17.0% for 2017 deals. IPO pricing dynamics 3 Post-IPO performance (median) Global indices 2% 2% 2% 3% 3% 32% 33% 35% 30% 36% 44.0% 77.2% 77.2% 71.0% % 50% 47% 53% 41% 13% 13% 13% 12% 18% 3% 2% 3% 3% 2% Below range Bottom of range In range Top of range Above range 14.3% 16.0% 13.9% % 17.0% 0.6% 1-Day 1-Week 1-Month 3-Month Current 75 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 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. 1) Overallotment exercised (%) presents the percentage of IPOs in which the overallotment option has been exercised (either partly or in full) Hang Seng Nikkei 225 SENSEX Source: Dealogic, Bloomberg as of 30 September

26 Leading transactions 2018 in Asia-Pacific Chinese (technology) companies listing in Hong Kong dominate the league table in Asia-Pacific Top 10 largest IPOs 2018 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 1-Aug-18 China Tower Technology HKEX Bottom of range $7.5bn 27.1% 0.0% 0.0% -8.7% -9.5% 29-Jun-18 Xiaomi Technology HKEX Bottom of range $5.4bn 11.2% 34.2% -1.2% 0.8% -8.8% 23-May-18 Foxconn Industrial Internet Technology Shanghai SE N/A N/A $4.3bn 10.0% 0.0% 44.0% 25.1% 3.4% 13-Sep-18 Meituan Dianping Consumer Services HKEX In range $4.2bn 8.7% 0.0% 5.3% N/A -0.4% 11-Jul-18 Viva Energy Oil & Gas ASX Bottom of range $2.0bn 54.5% 100.0% 0.0% -2.8% -8.8% 7-May-18 Vinhomes Financials Ho Chi Minh SE 100, , ,700 Top of range $1.3bn 10.0% 100.0% -3.7% 1.6% -7.6% 11-Jun-18 Mercari Technology Tokyo SE 2,700-3,000 3,000 Top of range $1.2bn 32.2% 55.4% 76.7% 46.3% 25.2% 26-Apr-18 Ping An 1 Consumer Services HKEX Top of range $1.1bn 15.0% 0.0% 0.0% -18.5% -4.6% 19-Jun-18 Jiangxi Bank Financials HKEX In range $1.1bn 23.0% 0.0% 0.3% 1.1% -3.3% 20-Apr-18 L1 Long Short Fund Financials ASX In range $1.0bn 0.0% 0.0% -0.5% 2.5% -17.5% Top 10 largest FOs 2018 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 4-Jul-18 Agricultural Bank of China Financials Shanghai SE N/A 3.97 FO - Cash Placing $15.0bn 0.0% -15.4% -11.1% -2.0% 22-Mar-18 Tencent Technology HKEX FO - Accelerated Bookbuild $9.8bn 100.0% 3.7% -1.2% -20.2% 11-Sep-18 Yahoo Japan Technology Tokyo SE FO - Accelerated Bookbuild $4.3bn 100.0% 2.5% N/A 15.5% 18-Apr-18 Renesas Electronics Technology Tokyo SE FO - Fully Marketed $2.7bn 100.0% 3.4% -2.0% -34.4% 5-Sep-18 Transurban Industrials ASX FO - ABB; Cash Placing; RO $2.6bn 0.0% 7.7% N/A 3.9% 6-Mar-18 Blackcow Food Consumer Goods Shenzhen SE N/A FO - Cash Placing $2.4bn 0.0% -0.3% -9.2% -35.3% 4-Aug-18 Huatai Securities Financials Shanghai SE N/A FO - Cash Placing $2.1bn 0.0% 10.6% 18.5% 20.7% 29-Jan-18 Shenwan Hongyuan Financials Shenzhen SE N/A 4.84 FO - Cash Placing $1.9bn 0.0% 13.2% 4.1% -7.0% 14-May-18 Digital Telecommunications 2 Technology Thailand SE FO - GPA $1.7bn 0.0% 4.3% 5.0% 7.9% 12-Mar-18 Tata Consultancy Services Technology BSE; NSE 2,872-2,925 2,872 FO - Accelerated Bookbuild $1.4bn 100.0% 0.7% 9.2% -23.9% 1) Ping An HealthCare & Technology Co Ltd, 2) Digital Telecommunications Infrastructure Fund 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, Bloomberg as of 30 September

27 FO money raised & # of deals IPO money raised & # of deals IPO and FO activity per sector in Asia-Pacific Industrials was the most active industry in terms of number of IPOs, whilst the Technology industry is leading in terms of proceeds with China Tower raising $7.5bn 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 September

28 Top countries in terms of IPO activity in Asia-Pacific IPO proceeds in Hong Kong have already more than doubled compared to FY2017, whereas a stricter admission process has resulted in a drop in IPO activity in China IPO activity of top countries in Asia-Pacific $28.7bn $23.7bn $21.3bn $14.3bn $29.3bn 126 $12.9bn $25.8bn $24.3bn $31.6bn 78 $16.8bn $0.2bn $2.1bn $4.0bn $11.7bn $5.0bn $11.6bn $15.6bn $10.6bn $6.0bn $4.7bn 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 money raised in Source: Dealogic as of 30 September

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