Q3 13 Global IPO update. September 2013

Transcription

1 September 213

2 Table of Contents Section Content 1 Q3 13 highlights 2 Global IPO activity trends 3 Regional analysis 4 Industry analysis 5 Stock exchange analysis 6 Pricing range 7 Follow-on activity 8 Withdrawals and postponements 9 Appendices Page 2

3 Section Content 1 Q3 13 highlights 2 Global IPO activity trends 3 Regional analysis 4 Industry analysis 5 Stock exchange analysis 6 Pricing range 7 Follow-on activity 8 Withdrawals and postponements 9 Appendices Page 3

4 Q3 13 saw a 22% decrease in the number of IPOs and a 61% decrease in proceeds, compared to Q2 13 IPO activity summary Global IPO activity Q3 13 Q2 13 % change (Q-o-Q) Q3 12 % change (Y-o-Y) Number of deals % % Capital raised US$18.2b US$46.2b -6.5% US$29.6b -38.3% An additional 37 IPOs are scheduled before the quarter-end that will raise an additional US$6.1b if successful, capital raised will increase by nearly 34% over Q3 13 Top 2 IPOs accounted for 56.1% of the global capital raised in Q3 13 One deal with capital raised above US$1b in Q3 13,compared to 12 deals in Q2 13 and three deals in Q3 12 Top three IPO deals (by capital raised) during the quarter Issuer name Domicile Country Specific Industry Exchange Proceeds (US$m) % of global capital raised in Q3 13 Envision Healthcare Holdings Inc United States Hospitals New York (NYSE) 1, % American Homes 4 Rent United States REITs New York (NYSE) % Frank's International NV United States Oil & Gas New York (NYSE) % Note: The covers global IPO activity from 1 January to 19 September 213. Source: Dealogic, EY Page 4

5 PE- and VC-backed IPOs decreased in number and proceeds raised compared to Q2 13 PE- and VC-backed summary PE-backed IPOs worldwide* Q3 13 Q2 13 % change (Q-o-Q) Q3 12 % change (Y-o-Y) Number of deals 22 (13.8% of global total) 4 (19.4% of global total) -45% 2 (1.5% of global total) 1.% Capital raised US$4.8b (26.4%) US$13.4b (29.1%) -64.1% US$4.b (13.4%) 21.3% Top three PE-backed IPOs (by capital raised) during the quarter Issuer name Domicile Country Specific Industry Exchange Proceeds (US$m) % of global capital raised in Q3 13 Envision Healthcare Holdings Inc United States Hospitals New York (NYSE) 1, % Deutsche Annington Immobilien GmbH Germany Real Estate Management & Development Deutsche Borse % Sprouts Farmers Markets Inc United States Food and Beverage NASDAQ % VC-backed IPOs worldwide* Q3 13 Q2 13 % change (Q-o-Q) Q3 12 % change (Y-o-Y) Number of deals 18 (11.3% of global total) 22 (1.7% of global total) -18.2% 16 (8.4% of global total) 12.5% Capital raised US$1.6b (8.6%) US$1.9b (4.1%) -16.7% US$1.2b (4.1%) 27.6% Top three VC-backed IPOs (by capital raised) during the quarter Issuer name Domicile Country Specific Industry Exchange Proceeds (US$ m) % of global capital raised in Q3 13 RetailMeNot Inc United States Internet Software & Services NASDAQ % Intrexon Corp United States Biotechnology New York (NYSE) % Open House Co Ltd Japan Real Estate Management & Development Tokyo (TSE) % Data up to 19 September 213, 9am IST. Source: Dealogic, EY *Note: 9 IPOs are backed by both PE and VC, raising US$.9b in Q3 13. Page 5

6 Emerging markets contributed around half of global IPO activity; majority of global IPOs priced within their initial pricing range Emerging markets* made up 51% of the global deals and 37% of capital raised in Q3 13: BRIC markets raised US$1b (5% of global total) through 19 (12%) deals in Q3 13 as compared to US$1.9b (24%) through 17(8%) deals in Q2 13 and US$6.b (2%) raised through 7 (37%) deals in Q3 12. Thailand, Singapore and Indonesia were some of the other active emerging markets during this quarter. Pricing: 92% of global IPOs priced within or above their initial filing range in Q3 13, slight increase from 88% in Q2 13. The majority of the IPOs (83%) were priced within their initial filing range, lower than the historical 1-year average of 86%. 9 % of IPOs were priced above their initial filing range and 8% of IPOs were priced below their initial filing range. Withdrawals and postponements: There were 29 postponed or withdrawn IPOs in Q3 13, compared to 4 in Q2 13 and 48 in Q3 12. State-owned enterprises (SOEs): There was one IPO listing from SOE privatization in Q3 13 New Zealand s power company Z Energy Limited, raising US$.7b. Follow-on offerings: There were 761 global follow-on offerings, raising US$98.1b in Q3 13 as compared to 895 deals raising US$153.b in Q2 13 and 736 deals raising US$152.5b in Q3 12. Follow-on offerings constituted 76% of global equity capital markets activity in Q3 13 by capital raised, while IPOs represented 14%. Convertibles accounted for 1%. * Please see the Appendix for the definition of emerging markets. Based on the listed company domicile. Data up to 19 September 213, 9am IST. Source: Dealogic, EY Page 6

7 Q3 13 key highlights: geography, industry and exchange Geographical analysis Industry analysis Exchange analysis By number of IPOs: Asia Pacific issuers maintained their dominance in deal volume, accounting for 49% of the total deals in Q3 13, followed by North America, which accounted for 3% of the total deals. The market shares of EMEA, and Central and South America were 18% and 4% respectively. By country, the US, Greater China* and the UK led the pack with 42, 16 and 1 deals respectively. By capital raised:. North America was at the top in terms of capital raised, accounting for 48% of the global total. Asia Pacific and EMEA were ranked second and third with 3% and 13% share respectively, while Central and South America accounted for 9%. By country, the US, Singapore and Greater China* were the top three countries in Q3 13 with 45% (US$8.2b), 9% (US$1.7b) and 5% (US$.9b) respectively. By number of IPOs: The top three sectors accounted for 41% of total IPO deals. Health care (23 deals) High technology (22 deals) Energy (21 deals) By capital raised: The top three sectors accounted for 69% of total deal value Energy (US$5.6b) Real estate (US$4.6b) Health care (US$2.3b) Average deal size during this quarter stood at US$114m. The energy sector had an average deal size of US$266.8m highest among all sectors. By number of IPOs: NASDAQ was the most active exchange, with 24 IPOs, closely followed by NYSE with 23 IPOs. The two accounted for 29% of the total number of deals. Among stock exchanges from Asia Pacific, Hong Kong Stock Exchange was the most active with 12 IPOs. By capital raised: The two exchanges in the US NYSE and NASDAQ accounted for 51% of the capital raised globally. NYSE was the top grosser of Q3 13 raising US$7.2b (4% of the total capital raised globally). NASDAQ (US$2.1b) and Singapore Stock Exchange (US$1.5b) were ranked second and third respectively accounting for 11% and 8% share. *Greater China includes Mainland China (9 deals raised US$578m), Hong Kong (6 deals raised US$84m), Macau (1 deal raised US$283m) Data up to 19 September 213, 9am IST. Source: Dealogic, EY Page 7

8 Q3 13 key highlights: top 2 IPOs Overview The top 1 IPOs together raised US$6.4b, which represents 35% of global proceeds. In Q3 13, the top 2 IPOs raised US$1.2b, contributing 56% of global proceeds, as compared to US$46.2 (63%) and US$29.6 (71%) in Q2 13 and Q3 12 respectively. The drop in proceeds in Q3 13 is attributed to a fall in IPOs raising more than US$1b. There was one such deal in Q3 13 compared to 12 listings in Q2 13 and three in Q3 12. Key exchanges In line with recent trends, NYSE has been the most active exchange for top IPOs in Q3 13, accounting for nine of the top 2 IPOs. Among the nine deals, two were cross-border listings, one each from Peru and Bermuda. 17 of the top 2 listed on their home exchange (as their primary exchange). Two larger listings are expected on NASDAQ in the last week of September, with expected deal sizes of US$69m and US$32m respectively. Key regions North America emerged as the highest contributor to IPO activity in Q3 13 (nine deals raising US$5.1b 5% of global proceeds). This is in stark contrast to the pattern seen in Q2 13 as well as in Q3 12 where more of the funds raised in top 2 IPOs came from Asia Pacific. Only one deal from the BRIC nations featured in the top 2 club in Q3 13. Nine out of the top 2 deals were from emerging markets, accounted for 36% of proceeds raised by the top 2 deals. The share of emerging markets in proceeds raised by top 2 deals in Q3 13 was lower than in Q2 13 (45%) and Q3 12 (51%). Key sectors Energy and real estate were the top sectors in Q3 13, raised US$4.b (eight deals) and US$3.6b (seven deals) respectively. However, in both Q2 13 and Q3 12, industrial and financial led the top 2 list. PE/VC backed Five of the top 2 deals were private equity-backed IPOs in Q3 13. This compares to nine IPOs in Q2 13 and two IPOs in Q3 12. * Data up to 19 September 213, 9am IST Source: Dealogic, EY Page 8

9 Key factors and Q4 13 Outlook Global IPO activity is expected to be strong in Q4 13, driven by global economic recovery Factors driving Q3 13 activity Global IPO activity fell in Q3 13, with projected activity to be 197 deals with proceeds around US$24.4b. This is 4% down by deal numbers and 27% by deal value compared to Q2 13. It is worthwhile to note that Q3 is traditionally the least active quarter compared with Q2 and Q4. IPO activity in Q3 13 was a story of two halves. In July and August, signs of improving macroeconomic conditions, particularly in the developed economies, coupled with continuing loose monetary conditions globally, saw lower market volatility and supported public listings. Market conditions turned in September as investor concern grew on impending monetary tightening by the US drove volatility higher and putting risk assets, especially in the emerging markets, and IPO activity under pressure. Q4 13 outlook Global IPO activity is expected to lift in Q4 13. Global IPO volume could reach 2 25 listings, generating total proceeds of around US$3-4b. This would be in line with Q4 12 levels. The uplift in IPO activity could vary from region to region, both in terms of timing and pace of activity. The outlook for emerging markets is softer due to slower economic growth having a negative impact on institutional investors appetite for new listings. Conversely, improving economic conditions and investor interest in developed market equities could support relatively firm IPO activity in major markets including the US, Germany and the UK. PE-backed IPO deals are expected to rise in Q4 13, given that filings have been increasing and there is a significant pipeline of PE-backed companies waiting to go public. In addition, better valuation and solid aftermarket performance of recent listings is an important catalyst for PE investors to take companies public. Despite a comparatively quiet third quarter, global IPO activity is expected to lift through the remainder of the year and into 214. The uplift in activity will vary from region to region both in terms of timing and pace. Maria Pinelli, Global Strategic Growth Markets Leader Investors have been encouraged by rising valuations but moving forward, pricing remain a critical concern. In this market, more than ever, firms need strong brand names or earnings track records to obtain appropriate pricing and secure investor support. Maria Pinelli, Global Strategic Growth Markets Leader Note: The covers global IPO activity from 1 January to 19 September 213 Page 9

10 Section Content 1 Q3 13 highlights 2 Global IPO activity trends 3 Regional analysis 4 Industry analysis 5 Stock exchange analysis 6 Pricing range 7 Follow-on activity 8 Withdrawals and postponements 9 Appendices Page 1

11 Jan'12 Feb'12 Mar'12 April'12 May'12 June'12 July'12 Aug'12 Sep'12 Oct'12 Nov'12 Dec'12 Jan'13 Feb'13 Mar'13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13* Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13* Capital raised (US$b) Number of IPOs Capital raised (US$b) Number of IPOs Capital raised (US$b) Number of IPOs Global IPO activity trends IPO activity saw a fall in Q3 13, both in terms of deal numbers and capital raised compared to Q3 12 Global IPO activity (25-213YTD) $ 15 $ 159 $ 214 $ 99 $ 46 $ 153 $ 141 $ 91 $ * Capital raised during Q1-Q3 (US$b) Number of IPOs during the year Capital raised during Q4 (US$b) Number of IPOs during Q1-Q3 For 213YTD, while the number of IPO deals decreased by 17%, the proceeds raised decreased by only 2%, when compared to the first nine months of 212. When compared to Q2 13, while the number of deals in Q3 13 decreased by 22%, the proceeds declined by 61%. The significant drop in IPO proceeds was primarily because Q2 13 saw 12 mega deals (with capital raised more than US$1b) compared to only one deal, US based Envision Healthcare Holdings Inc which raised US$1.1b in Q3 13. September 213 has, so far, seen 21 IPO listings raising US$1.5b. Mexico s Controladora Vuela Compania de Aviacion SAB de CV, which raised US$346.1m, is the largest deal so far. 37 more listings worth US$6.1b are expected by the end of the month. We expect China Huishan Diary Holding Co Ltd s US$1.3b listing, US s Premier Inc US$69m and UK s Foxton Group plc US$558m IPO listings to be completed by end of September. Quarterly IPO activity ( YTD) Monthly IPO activity ( YTD) $18 $44 $3 $37 $24 $46 $18 Capital raised (US$b) Number of deals Capital raised (US$b) Number of deals $2 $4 $12 $13 $22 $8 $1 $3 $16 $17 $8 $12 $9 $8 $8 $15 $15 $16 $11 $6 $ *Data up to 19 September 213, 9am IST. Source: Dealogic, EY Page 11

12 Q21 Q31 Q41 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q1'13 Q213 Q313 Q413 Q114 Index value Number of IPOs % Equity market returns year-to-date Global IPO activity trends Diverging performance for the developed and emerging markets despite improving global macroeconomic conditions Year-to-date equity market returns Major indices 5% 4% 3% 2% 1% % -1% -2% 42% 212 YTD return 213 YTD return 25% 25% 22% 21% 16% 14% 12% 13% 9% 1% 9% 6% 4% % -9% Nikkei NASDAQ S&P 5 DAX 3 FTSE 1 Hang Seng KOSPI IBOVESPA *Data updated as 19 September 213. Source: S&P Capital IQ MSCI World Index market performance Jan-4-21 Sep-4-21 Mai Jan Sep Mai OECD Leading indicator growth vs. number of IPOs OECD Leading Indicator y/y growth rate *Data updated as on 19 September 213. Source: S&P Capital IQ Number of IPOs OECD +6 Major Emerging Economies Leading Indicator Page 12

13 Median deal value US$m Global IPO activity trends In 1H13, the median value rose globally, when compared to the last two years, with an exception of the Asia-Pacific region Annual median deal size by region, US$m Quarterly median deal size by region, US$m Americas EMEIA Asia-Pacific 2 1 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q1'13 Q213 Q YTD Asia-Pacifc Americas EMEIA All Median deal values trended higher for Americas and EMEIA between 211 to 213YTD but trended lower for Asia-Pacific, reflecting smaller deal sizes in Asia- Pacific. Median deal values rose during the year for Americas and EMEIA. For Q4 13, we expect median deal values to rise for all 3 regions while market and investor confidence builds. *Data updated up to 19 September 213. Source: Dealogic Page 13

14 Section Content 1 Q3 13 highlights 2 Global IPO activity trends 3 Regional analysis 4 Industry analysis 5 Stock exchange analysis 6 Pricing range 7 Follow-on activity 8 Withdrawals and postponements 9 Appendices Page 14

15 Proceeds (US$b) Number of IPOs Regional Analysis Asia Pacific and North America accounted for close to 8% of global IPO activity, both in terms of deals and capital raised in Q3 13 Regional share by capital raised (US$b) Regional share by number of IPOs ,8 13,8 5, 4,1 1,2 6,7 1,6 8,8 19,2 17,9 2,5 5,4 Q3'12 Q2'13 Q3'13* Q3'12 Q2'13 Q3'13* Asia Pacific Europe, Middle East and Africa Asia Pacific Europe, Middle East and Africa North America Central and South America North America Central and South America In Q3 13, while Asia-Pacific continued to lead in terms of the number of IPOs (accounting for close to 5% of the global total), North America led in terms of total proceeds raised accounting for 48% of global proceeds while Asia-Pacific had a 3% share. Across all regions, IPO activity remained soft in Q3 13 compared to Q2 13. In terms of proceeds raised, Central and South America saw lower activity (8% decline), followed by Asia-Pacific (7%), q-o-q. However, in terms of deal volume, while the number of IPOs in the Asia-Pacific and Central and South America regions remained almost the same, the EMEA and North America recorded a decrease of 52% and 24%, respectively. Compared to Q3 12, while capital raised rose by 18% and 115% in EMEA and North America respectively in Q3 13. Asia-Pacific and Central and South America saw a decline of 72% and 69%, respectively. However, in terms of number of IPOs, while Asia Pacific and EMEA recorded a decrease of 38% and 13%, respectively, the deal volume increased in North America by 66% and in Central and South America by 2%. *Data up to 19 September 213, 9am IST. Based on the listed company domicile Source: Dealogic, EY Page 15

16 Q3 13 Regional analysis by country Across countries, the US dominated the global IPO landscape, by deal numbers and proceeds raised North America Central and South America Asia-Pacific EMEA By capital raised US Bermuda Canada,3,2 8,2 Mexico Peru Brazil,4,4,7 Singapore Gr. China New Zealand Thailand Indonesia Australia Japan,9,8,7,4,3,3 1,7 Germany Ireland Iran UK Norway South Africa,1,1,3,4,6,7 The US led in terms of total proceeds raised with seven of the top 1 IPOs, followed by Singapore and New Zealand. There was one deal with capital raised above US$1b. The top three IPOs, accounting for 14.7% of capital raised globally, were from the US. Number of deals US Canada Bermuda Mexico Jamaica Brazil Peru Gr. China Singapore India Thailand Japan Indonesia Australia South Korea Malaysia UK Poland Ireland South Africa Israel Belgium Ukraine Norway The US dominated the global IPO landscape in terms of deal number, far exceeding the total in Greater China* and the UK, which ranked second and third respectively. The most active sub-areas in the US were West and Southwest, accounting for 12 and nine deals respectively. Developing countries accounted for 5.1% of the number of deals globally and 37.4% of the total global capital raised. *Greater China includes Mainland China (9 deals), Hong Kong (6) and Macau(1) issuers. Based on the listed company domicile. Data up to 19 September 213, 9am IST. Source: Dealogic, EY Page 16

17 Q1'7 Q2'7 Q3'7 Q4'7 Q1'8 Q2'8 Q3'8 Q4'8 Q1'9 Q2'9 Q3'9 Q4'9 Q1'1 Q2'1 Q3'1 Q4'1 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13* Capital raised (US$b) Number of IPOs * Capital raised (US$b) Number of IPOs Regional analysis: by emerging markets Average deal size decreased by 59% on a q-o-q basis Annual IPO activity in emerging markets Title For 213 YTD, the emerging markets accounted for 39% of global proceeds raised and 48% of completed IPO deals globally. However, in Q3 13, these countries accounted for 37% of total proceeds and 51% of total deals. IPO activity in emerging markets saw a huge dip (64%) in terms of proceeds raised in Q3 13 compared to the previous quarter. Q2 13 saw four billion-dollar deals (with Brazilian company, BB Seguridade Participacoes SA raising US$ 5.7b) compared to none in Q3 13. The largest deal from the emerging markets during Q3 13 raised US$475.9m. 4 $223 $66 $95 $197 $13 $61 $ Compared to Q3 12, IPO activity in Q3 13 declined by 58% and 42% in terms of proceeds raised and deal volume, respectively, primarily due to a decline in IPO activity in China, Malaysia and Mexico. In Q3 12, the three countries together accounted for 8% of total proceeds raised in emerging countries and 5% of deal volume. Quarterly IPO activity in emerging markets $3 $62 $46 $85 $23 $31 $1 $2 $1 $8 $27 $6 $32 $35 $44 $86 $3 $36 $17 $19 $9 $18 $16 $19 $9 $19 $ *Data up to 19 September 213, 9am IST. Based on the listed company domicile. Source: Dealogic, EY Page 17

18 Industry analysis The energy sector raised 31% of global proceeds in Q3 13 Capital raised (US$b) Number of IPOs Q3'13 Q3'12 Q3'13 Q3'12 Energy 1,7 5,6 Healthcare 1 23 Real estate 2,5 4,6 Technology 2 22 Health care 2,3 2,8 Energy Industrials 1,4 1,6 Real estate 14 2 Technology,9 1,3 Industrials Financials,9 5,1 Financials 9 16 Retail,8 1,3 Materials 9 32 Media and entertainment,7,8 Retail 8 16 Consumer staples,7,6 Consumer staples 8 15 Materials,3 2,4 Media and entertainment 6 8 Consumer products and services,,5 Consumer roducts and services 6 12 Telecommunications,,1 Telecommunications 2 6 *Data up to 19 September 213, 9am IST. Source: Dealogic, EY Page 18

19 Stock exchange analysis: summary Asia Pacific and Americas exchanges dominated the global IPO market by deals and capital raised respectively US exchanges 36% of number of deals and 58% of capital raised Asia-Pacific exchanges 47% of number of deals and 3% of capital raised EMEA exchanges 17% of number of deals and 12% of capital raised Key regions/exchanges during the quarter US: remains the key region accounting for 51% of global proceeds US exchanges (NYSE and NASDAQ) raised US$9.2b in 47 deals In Q3 13, 47% of deals and 41% of proceeds raised in the US were backed by PE and/or VC firms With US$7.2b raised in 23 deals, the New York Stock Exchange was the highest grossing exchange Heath care (15 issuers raising US$2.b) and Energy (eight issuers raising US$3.1b) were the two most active sectors Central and South America: led by Mexico, raised 6% of capital globally Although the exchanges accounted for only 3% of the global deal count, the average issue size was US$227.5m compared to the global average issue size of US$114m in Q3 13. Greater China: HKEx and Growth Enterprise Markets only active exchanges Hong Kong Stock Exchange (HKEx) accounted for the most deals in Asia Pacific and ranked third by capital raised in the Asia Pacific region (US$957m via 12 deals) Singapore: emerged as a key exchange this quarter Witnessed four deals that raised $1.5b Accounted for 28% of proceeds raised in Asia Pacific Japan: Slower activity q-o-q in terms of deals and capital raised Seven deals that raised US$288.8m compared to US$5.8b via 1 deals in Q2 13 Australia and New Zealand: Slower activity in terms of deals and dollars The region witnessed seven deals raising US$1.1b compared to US$2.2b via 13 deals in Q2 13 Europe: led by the UK, raised 6% of global proceeds: Saw 24 IPOs raising US$1.7b in Q3 13 (15% of global number of deals); a decrease of 43% in deal count and 63% in the capital raised compared to Q2 13 Deutsche Bourse had the highest proceeds raised across European exchanges with US$738.5m raised in one IPO offering. London Alternative Investment Market (AIM) had the highest number of IPOs across European exchanges; ranked third globally by number of deals (14) raising US$389m. Middle East and Africa: Stronger activity q-o-q in Middle East but slower in Africa Middle East exchanges raised US$445.6m in three IPOs in Q3 13 compared to US$53.9m in four IPOs in Q2 13. African exchanges raised US$28.6m in one IPO during this quarter compared to US$95.1m in five IPOs in Q2 13 *Data up to 19 September 213, 9am IST. Source: Dealogic, EY. Based on the listed company s stock exchange Page 19

20 Stock exchange analysis Q3 13 Capital raised (US$b) Q3 12 New York (NYSE) 7,2 Tokyo (TSE) 8,5 NASDAQ 2,1 New York (NYSE) 6,7 Singapore (SGX) 1,5 Bursa Malaysia (KLSE) 2,4 Australia (ASX) 1, Hong Kong (HKEx) 1,8 Hong Kong (HKEx) 1, Shenzhen - ChiNext (SZSE) 1,6 Deutsche Borse,7 NASDAQ 1,4 Mexican (BMV),7 Shanghai (SSE) 1,4 Thailand (SET),7 Shenzhen - SME board 1,4 All other exchanges 3,4 All other exchanges 4,4 NASDAQ New York (NYSE) London (AIM) Hong Kong (HKEx) Bombay SME Indonesia (IDX) Singapore Catalist Australia (ASX) Thailand (SET) KOSDAQ Singapore (SGX) All other exchanges No. of IPOs Shenzhen - Chinext (SZSE) Warsaw NewConnect Shenzhen - SME board New York (NYSE) NASDAQ Hong Kong (HKEx) Indonesia (IDX) Shanghai (SSE) London (AIM) All other exchanges * Data based on domicile of the exchange, regardless of the listed company domicile. *Data up to 19 September 213, 9am IST. Source: Dealogic, EY Page 2

21 Q1'8 Q2'8 Q3'8 Q4'8 Q1'9 Q2'9 Q3'9 Q4'9 Q1'1 Q2'1 Q3'1 Q4'1 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13* Number of deals Pricing range More deals were priced above their initial pricing range during Q3 13 compared to Q % of global IPOs* in 213 were priced within their initial filing range and 9% were priced above and 8% of IPOs were priced below their initial filing range. Total number of IPOs % 82% 1% 1% 1% 1% 1% 14% 1% 7% 19% 3% 2% 1% 1% 9% 7% 7% 6% 6% 4% 7% 3% 3% 3% 3% 6% 5% 2% 3% 4% 7% 6% 8% 5% 11% 4% 7% 6% 4% 9% 12% 5% 8% 9% 72% 62% 52% 42% 89% 9% 89% 86% 9% 74% 95% 87% 85% 89% 9% 91% 88% 89% 92% 85% 83% 87% 85% 89% 85% 83% 83% 32% 22% 12% 2% In range Above Below *Chart shows the number of open-price IPOs with deal value above US$5m that is priced above, below or within their initial filing range. For 3% of the IPOs, this range is not applicable. Data up to 19 September 213, 9am IST. Source: Dealogic, EY Page 21

22 Section Content 1 Q3 13 highlights 2 Global IPO activity trends 3 Regional analysis 4 Industry analysis 5 Stock exchange analysis 6 Pricing range 7 Follow-on activity 8 Withdrawals and postponements 9 Appendices Page 22

23 Q1'7 Q2'7 Q3'7 Q4'7 Q1'8 Q2'8 Q3'8 Q4'8 Q1'9 Q2'9 Q3'9 Q4'9 Q1'1 Q2'1 Q3'1 Q4'1 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13* Capital raised (US$b) Number of FOs * Capital raised (US$b) Number of FOs Follow-on activity Follow-on offerings constituted 76% of global equity capital markets activity in Q3 13 by capital raised, while IPOs represented 15% Yearly follow on activity $553 $552 $842 $642 $469 $57 $ In Q3 13, there were 16 deals with capital raised above US$1b 13 from developed markets and three from emerging markets. Seven of the 2 deals were priced in July, three deals were priced in August and 1 deals were priced in September. 29% of the global number of follow on deals and 25% of capital raised were from emerging markets (US$24.8b via 217 deals), with developed markets contributing US$ 73.3b via 544 deals in Q3 13. The top three stock exchanges by capital raised were New York (US$27.9b via 8 deals), NASDAQ ($8.8b via 81 deals) and London (US$6.7b via 14 deals). The top three industries by capital raised were financials (US$22.8b via 51 follow-on deals), industrials (US$16.6b via 92 deals) and energy and power (US$1.4b via 91 deals). Quarterly follow on activity $124 $163 $19 $157 $78 $199 $133 $142 $11 $289 $188 $265 $114 $113 $18 $235 $148 $165 $83 $73 $134 $89 $152 $131 $154 $153 $98 4 *Data up to 19 September 213, 9am IST. Source: Dealogic, EY Page 23

24 Q1'7 Q2'7 Q3'7 Q4'7 Q1'8 Q2'8 Q3'8 Q4'8 Q1'9 Q2'9 Q3'9 Q4'9 Q1'1 Q2'1 Q3'1 Q4'1 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 % of total deals * Number of deals Withdrawn and postponements Completed IPOs Completed IPOs 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 5% 4% 3% 2% 1% % 1, ,367 1, % 1% 36% 36% 21% 7% 35% 5% 11% 5% 7% 1% 1% 2% 5% 8% 14% 8% 7% 19% 17% 19% 24% 13% 1% 2% 4% 3% 4% Postponed IPOs 95% 64% Withdrawn IPOs % 33% 21% 1% 11% 12% 15% 17% 19% 2% 17% 23% 24% 23% 21% 13% 14% 13% 1% 2% 4% 1% 2% 2% 4% 5% 4% 1% 6% 2% 5% 6% 1% 4% Postponed IPOs Withdrawn IPOs There were six postponed and 23 withdrawn IPOs in Q3 13. Of the 29 deals: 1 were from the US, three each from Australia, China, and Brazil, and two from Philippines. Six PE-backed; three VC backed. Six from NASDAQ, five from New York Stock Exchange and three from Australian Stock exchange. Five were real estate issuers and four each from industrials and technology issuers. Market conditions was the most popular reason for withdrawing or postponing a listing. In comparison, there were 13 postponed and 27 withdrawn IPOs in Q2 13. Q3 12 saw four postponed and 44 withdrawn IPOs. The proportion of postponed and withdrawn IPOs compared to completed IPO deals was highest in 28, at 43%, whereas the proportion was 27% in 212 and 17% in 213*. On a quarterly basis, the proportion of postponed and withdrawn IPOs against completed IPOs was highest in Q4 8 at 19%. In Q2 13 and Q3 13 so far, this ratio of postponed and withdrawn IPOs compared to completed IPOs was 19% and 18% respectively. The ratio of postponed and withdrawn IPOs in Q3 12 was 25%. *Data up to 19 September 213, 9am IST. Source: Dealogic, EY Page 24

25 Section Content 1 Q3 13 highlights 2 Global IPO activity trends 3 Regional analysis 4 Industry analysis 5 Stock exchange analysis 6 Pricing range 7 Follow-on activity 8 Withdrawals and postponements 9 Appendices Page 25

26 Appendix: Key global IPO statistics * Number of deals 1367 ( 142% 1 ) 1241 ( 9% 2 ) 837 ( 33% 3 ) 529 Capital raised (US$) $284.9b ( 136% 1 ) $169.9b ( 4% 2 ) $128.6b ( 24% 3 ) $88.8b Average deal size (US$) $28.3m $136.9m $153.6m $167.8m PE-backed IPOs 155 deals, $35.b 119 deals, $38.3b 17 deals, $19.4b 94 deals, $26.b VC backed IPOs 129 deals, $13.7b 142 deals, $17.3b 92deals, $23.2b 55 deals, $4.5b Top 5 sectors (number of deals) Materials (37) Industrial (236) Technology (18) Consumer staples (113) Energy (94) Materials (268) Industrial (199) Technology (149) Consumer products 4 (124) Energy (11) Materials (14) Industrial (125) Technology (122) Energy (69) Consumer staples (58) Industrial (72) Health care (69) Real estate (64) Technology (58) Financials (56) Top 5 sectors (capital raised) Financials ($8.b) Industrial ($57.6b) Materials ($38.5b) Energy ($23.2b) Technology ($2.7b) Materials ($29.2b) Industrial ($26.4b) Energy ($21.3b) Financial ($15.9b) Technology ($14.7b) Technology ($23.5b) Financial ($19.4b) Industrials ($19.b) Energy ($13.1b) Materials ($12.4b) Real estate ($16.9b) Financial ($14.4b) Industrial ($11.5b) Energy ($1.4b) Health care ($8.7b) Top 5 exchanges (number of deals) Shenzhen SME (25) Shenzhen ChiNext (116) Australian (92) Hong Kong (87) New York (82) Shenzhen ChiNext (128) Warsaw New Connect (123) Shenzhen SME (115) Australian (11) Hong Kong (68) New York (78) Shenzhen ChiNext (74) Warsaw - New Connect(62) Shenzhen (55) NASDAQ (54) NASDAQ (71) New York (7) London AIM (31) Hong Kong (27) Australia (27) Top 5 exchanges (capital raised) Hong Kong ($57.4b) New York ($34.7b) Shenzhen SME ($3.2b) Shanghai ($27.9b) Tokyo ($14.3b) New York ($3.5b) Hong Kong ($25.3b) Shenzhen SME ($15.7b) Shanghai ($15.1b) London ($13.9b) New York ($24.b) NASDAQ ($22.6b) Tokyo ($12.2b) Hong Kong ($11.5b) Kuala Lumpur ($7.6b) New York ($24.1b) NASDAQ ($8.4b) Tokyo ($7.7b) Sao Paulo ($7.7b) Hong Kong ($6.b) *Data up to 19 September 213, 9am IST 1 Percentage change from 29 to 21 2 Percentage change from 21 to Percentage change from 211 to Consumer products includes consumer services Please see Appendix for the list of stock exchanges Source for all charts and tables shown: Dealogic, Thomson Financial, EY Page 26

27 Appendix: Q3 13 top 2 IPOs by capital raised Issue month Issuer name Domicile Sector Issuer business description Capital raised (US$m) Exchange(s) Type of IPO August Envision Healthcare Holdings Inc United States Healthcare Provider of specialist outsourced medical services within hospitals. 1,11.9 New York (NYSE) PE-backed IPO July American Homes 4 Rent United States Real Estate Real estate investment trust New York (NYSE) August Frank's International NV United States Energy and Power Provider of tubular technologies for drilling services New York (NYSE) July Deutsche Annington Immobilien GmbH Germany Real Estate Property management group Deutsche Borse PE-backed IPO August Z Energy Ltd New Zealand Energy and Power Downstream oil industry operator engaged in marketing of refined petroleum products to commercial and retail customers Australia (ASX) July August NRG Yield Inc QEP Midstream Partners LP United States United States Energy and Power Energy and Power Owns, operates and acquires contracted renewable and conventional generation and thermal infrastructure assets. Owns, operates, and acquires midstream energy assets July OUE Hospitality Trust Singapore Real Estate Real estate investment trust July SPH REIT Singapore Real Estate Real estate Investment Trust July Phillips 66 Partners LP United States Energy and Power Oil company exploring for petroleum and natural gas New York (NYSE) New York (NYSE) Singapore (SGX) Singapore (SGX) New York (NYSE) Data up to 19 September 213, 9am IST Source: Dealogic, EY Page 27

28 Appendix: Q3 13 top 2 IPOs by capital raised (continued) Issue month Issuer name Domicile Sector Issuer business description July Grana y Montero SAA Peru Industrials July July Tamin Petroleum & Petrochemical Investment Iran Co CPFL Energias Renovaveis SA Brazil Energy and Power Energy and Power Engaged in engineering and construction of industrial buildings and infrastructure. Engaged in the production of petroleum and petrochemicals. Electric power generation company. Renewable Energy: Diversified. Capital raised (US$m) 43.1 Exchange(s) New York (NYSE) 419. Tehran 41.5 Sao Paulo (BM&F BOVESPA) July Green REIT plc Ireland Real Estate REIT 44.6 Dublin July July August Sprouts Farmers Markets Inc Fideicomiso F/854 - Fibra Shop Athlon Energy Inc Soilbuild Business Space August REIT Controladora Vuela September Compania de Aviacion SAB de CV August Third Point Reinsurance Ltd United States Consumer Staples Type of IPO Retail food store NASDAQ PE-backed IPO Mexico Real Estate Shopping centre real estate trust United States Energy and Power Oil and natural gas company Singapore Real Estate Real estate Investment Trust Mexico Industrials Commercial flight airline Bermuda Financials Underwriter of reinsurance policies Mexican (BMV) New York (NYSE) Singapore (SGX) Mexican (BMV) New York (NYSE) PE-backed IPO PE-backed IPO *Data up to 19 September 213, 9am IST Source: Dealogic, EY Total capital raised by top 2 IPOs in Q3 13: Total global capital raised in Q3 13 : % of top 2: US$1.2b US$18.2b 56% Page 28

29 Appendix: definitions The data presented in the and press releases are from Dealogic, Thomson Reuters and EY. The Q3'13 Global IPO update covers global IPO activity from January to 19 th September 213 (data up to 9am India time). For the purposes of these reports and press releases, we focus only on IPOs of operating companies and define an IPO as a company s first offering of equity to the public. This report includes only those IPOs for which Dealogic, Thomson Reuters and EY offer data regarding the issue date (the day the offer is priced and allocations are subsequently made), trading date (the date on which the security first trades) and proceeds (funds raised, including any over-allotment sold). Postponed IPOs, or those which have not yet been priced, are therefore excluded. Over-the-counter (OTC) listings are also excluded. In an attempt to exclude non-operating company IPOs such as trusts, funds and special purpose acquisition companies (SPACs), companies with the following Standard Industrial Classification (SIC) codes are excluded: 691: Financial companies that conduct trust, fiduciary and custody activities 6371: Asset management companies such as health and welfare funds, pension funds and their third-party administration as well as other financial vehicles 6722: Companies that are open-end investment funds 6726: Companies that are other financial vehicles 6732: Companies that are grant-making foundations 6733: Asset management companies that deal with trusts, estates and agency accounts 6799: Special Purpose Acquisition Companies (SPACs) We also applied the above SIC exclusion criteria for the follow on activity analysis. In our analysis, unless stated otherwise, IPOs are attributed to the domicile of the company undertaking an IPO. The primary exchange on which they are listed is as defined by Dealogic, Thomson Reuters and EY research. A foreign listing is where the stock exchange nation of the company is different from the company's domicile (i.e., issuer s nation). For IPO listings on HKEx, SSE, SZE, WSE, NewConnect, TSX and TSX-V exchanges, we use their first trading date in place of issue date. Page 29

30 Appendix: definitions Geographic definitions: Asia includes Bangladesh, Greater China, India, Indonesia, Japan, Laos, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Thailand and Vietnam Greater China includes Mainland China, Hong Kong, Macau and Taiwan only Asia Pacific includes Asia (as stated above) plus Australia, New Zealand, Fuji and Papua New Guinea Central and South America includes Argentina, Bermuda, Brazil, Chile, Colombia, Ecuador, Jamaica, Mexico, Peru and Puerto Rico Europe includes Armenia, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Isle of Man, Italy, Kazakhstan, Luxembourg, Lithuania, Netherlands, Norway, Poland, Portugal, Russian Federation, Spain, Sweden, Switzerland, Turkey, Ukraine and United Kingdom Middle East includes Bahrain, Iran, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen Africa includes Algeria, Botswana, Egypt, Ghana Kenya, Madagascar, Malawi, Morocco, Namibia, Rwanda, South Africa, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe North America consists of the United States and Canada Emerging markets include issuers from Argentina, Armenia, Bangladesh, Bolivia, Brazil, Bulgaria, Chile, Colombia, Croatia, Cyprus, Egypt, Ethiopia, Greater China, Hungary, India, Indonesia, Ireland, Israel, Kenya, Kuwait, Kazakhstan, Laos, Lithuania, Malaysia, Mauritius, Mexico, Namibia, Pakistan, Peru, Philippines, Poland, Qatar, Russian Federation, Saudi Arabia, Sierra Leone, Singapore, Slovenia, South Africa, South Korea, Sri Lanka, Tanzania, Thailand, Tunisia, Turkey, Ukraine, United Arab Emirates, Vietnam, Zambia. Developed markets include issuers from Australia, Austria, Belgium, Bermuda, Canada, Denmark, Finland, France, Germany, Greece, Guernsey, Isle of Man, Italy, Japan, Jersey, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom and United States. State-owned enterprise (SOE) privatizations refers to former state-owned entities that have completed their IPO listings to become public companies. Page 3

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