Q3’11 Global IPO Update
October 2011
Q3’11 key highlights
Global IPO activity by number of IPOs was lower in Q3’11 (284 deals)
compared to Q3’10 (302 deals) and much lower than Q2’11 (383 deals):
6% less IPOs in Q3’11 than Q3’10.
26% less IPOs in Q3’11
than Q2’11.
Total capital raised in Q3’11 was markedly lower (US$28.5 billion) than Q3’10
(US$52.5 billion) and significantly lower than Q2’11 (US$65.6 billion):
46% less capital raised in Q3’11
than in Q3’10.
Page 2
57% less capital raised in
Q3’11 than in Q2’11.
Q3’11 Global IPO Update
Q3’11 key highlights
Quarter on quarter analysis:
►
Global IPO volume reached US$28.5 billion in 284 deals in Q3’11. There was a 6% decrease by
number of deals and 46% lower by capital raised than the US$52.5 billion raised via 302 deals
in the third quarter of 2010.
►
After a strong first six months of 2011, Q3’11 was the lowest quarter by capital raised since Q2’09
(US$10.4 billion from 82 deals).
►
►
The unresolved Eurozone debt crisis, concerns about global economic growth and falling equity markets had a deep
impact on global IPO activity and on both issuers and investors’ confidence. The market is waiting for governments to
deal with the current debt and economic crisis.
►
There is a huge pipeline of private companies globally, waiting to go public as soon as market conditions improve.
The global IPO market will recover when the markets are stabilized and both issuers and investors’ confidences are
improved.
Average deal size decreased in many markets in Q3’11 compared to Q2’11. The global average deal size fell from
US$171.2 million to US$100.2 million in Q3’11, due to smaller IPOs.
Year on year analysis:
►
In the first nine months of 2011, there were 961 deals which raised US$140.6 billion. There was 6 %
lower by number of deals and 8% decrease by capital raised than the US$153.1 billion via 909 IPOs
for the first nine months of 2010.
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Q3’11 Global IPO Update
Q3’11 key highlights
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►
The top three IPOs accounted for 27% of the third quarter’s global capital raised.
►
Spanish commercial bank, Bankia raised US$4.4 billion in July, which constituted 15.5% of Q3’11 global capital
raised. It is the third largest IPO globally so far this year. It is the second largest IPO on Bolsa de Madrid ever
(behind the wind power generation company Iberdrola Renovables SA’s US$6.6 billion listing in Q4’07).
►
The second largest IPO in Q3’11 was the Polish coal producer JSW SA which raised US$1.9 billion on Warsaw Stock
Exchange in July. This is the fourth largest IPO by Polish issuers on record.
►
The third largest IPO was the US$1.2 billion IPO listing of China’s hypermarket operator, Sun Art Retail Group Ltd on
Hong Kong Stock Exchange (HKEx) in July.
Emerging markets** made up around 67% by global number of deals and 60% by amount of
capital raised in Q3’11:
►
►
Of the top 10 IPOs (by capital raised), 6 deals were from emerging countries. Of the top 20 IPOs, 12 deals were from
emerging countries.
BRIC markets recorded 95 deals and US$12.5 billion, or 33% of global number of deals and 44% of
total capital raised in Q3’11. This compares with US$25.3 billion via 128 deals in Q2’11 and US$41.8
billion and 132 deals in Q3’10.
** Please see the Appendix for the definition of emerging markets and Asian issuers.
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Q3’11 Global IPO Update
Q3’11 key highlights
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In Q3’11, Asian issuers** continue to dominate global IPO activity. The region accounted for
47% of dollar volume or US$13.5 billion in 138 deals in Q3’11. However, Q3’11 was the lowest level
of capital raised by Asian issuers since Q2’09 (US$3.0 billion in 44 deals).
►
Greater Chinese issuers still dominated the global IPO market. Greater China issuers made up
around 40% of global fundraising in Q3’11:
►
Greater Chinese issuers raised US$11.4 billion in 90 deals (at home exchanges or cross-border listings). This is the
lowest level of fundraising by Greater Chinese issuers since Q2’09 (US$2.5 billion in 12 deals).
►
Shenzhen Stock Exchange (SME and ChiNext) (SZE) led among world exchanges by capital raised
(US$5.5 billion in 56 deals) in Q3’11, taking the lead for the first time since Q2’10.
►
Shanghai Stock Exchange (SSE) ranked third by global capital raised. SSE raised US$3.1 billion via
9 IPO deals.
►
Hong Kong Stock Exchange (HKEx) was fourth by global capital raised (US$2.5 billion in 17 deals).
►
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The third largest IPO globally in Q3’11 was the US$1.2 billion IPO by Chinese hypermarket operator, Sun Art Retail
Group Ltd on HKEx.
Q3’11 Global IPO Update
Q3’11 key highlights
►
US exchanges raised 14% of global proceeds, 60% by capital raised are backed by PE and/or
VC firms:
►
►
►
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►
►
US exchanges (NYSE, NASDAQ and AMEX) raised 14% of global proceeds, or a total of US$3.9 billion in 19 deals
in Q3’11. The US IPO market was much quieter in Q3’11. This was a 58% decrease by number of deals and 71.5%
lower by capital raised from Q2’11 (US$13.8 billion via 45 deals) to Q3’11.
NYSE was ranked fifth by highest capital raised among exchanges. There were 8 deals which raised US$2.2 billion
in Q3’11. This represents a 78% decrease in capital raised from Q2’11.
PE and/or VC sponsored deals made up 63% by number of US new issuances (12 deals) and 60% by capital
raised (US$2.3 billion). The second, third and fourth largest US IPOs in Q3’11 were all PE backed.
Cross border IPOs on US exchanges was also quieter in Q3’11. There was one IPO by Chinese issuer which raised
US$174 million.
There were four deals from the oil and gas industry which raised US$1.3 billion in Q3’11. This includes this
quarter’s largest US IPOs, SandRidge Permian Trust’s US$621 million listing on NYSE.
Central and South American issuers raised 1.4% of global capital raised, led by Brazil.
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Issuers from Central and South America raised US$398 million in 4 deals (1.4% of global deal number) in Q3’11.
This is the lowest quarter by capital raised since Q3’10.
Brazil conducted one IPO deal raising US$238 million in Q3’11, the lowest quarter by capital raised since Q3’10.
However, many local companies are waiting for markets to improve before tapping the Sao Paulo Stock Exchange
to finance expansion plans.
Mexico conducted one IPO in Q3’11. Banregio Grupo Financiero SAB de CV raised US$154 million on Bolsa
Mexicana de Valores.
Q3’11 Global IPO Update
Q3’11 key highlights
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European exchanges raises 31.2% of global proceeds, led by Spain and Poland:
►
European exchanges launched 72 IPOs worth US$8.9 billion in Q3’11. There was a 31% increase by number of
deals in Q3’11 compared to Q3’10 (US$2.7 billion in 55 deals), while capital raised increased by 232%.
►
There was a 26% decrease by number of deals in Q3’11 compared to Q2’11 (US$17.7 billion via 97 deals), while
capital raised decreased by 50%.
►
Spain’s Bolsa de Madrid led Europe and was second globally in fundraising with US$5.3 billion raised in five IPO
offerings. This is due to hosting this quarter’s largest IPO of Spanish commercial bank, Bankia which raised US$4.4
billion and the sixth largest IPO of another commercial bank, Banca Civica SA which raised US$857.3 million.
►
Warsaw Stock Exchange (WSE) had the second highest capital raised within Europe. There were 4 IPOs which
raised US$2.0 billion altogether. WSE hosted this quarter’s second largest IPO listing of the coal producer JSW SA
which raised US$1.9 billion.
►
Polish junior market NewConnect and London Alternative Investment Market (AIM) launched the highest and second
highest number of IPOs within European exchanges. There were 36 deals which raised US$43 million on
NewConnect and 13 deals which raised US$326 million on London AIM.
►
The Middle East and Africa IPO market remained relatively quiet in Q3’11 due to regional political
unrest and global market volatility. Issuers from the Middle East raised US$219 million in two IPOs in
Q3’11, while African issuers completed 7 IPO deals which raised US$536.7 million.
►
There were three deals with capital raised above US$1 billion in Q3’11, compared to four deals in
Q3’10. Of the three deals, they were from Spain, Poland and China (one deal each).
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Q3’11 Global IPO Update
Q3’11 key highlights
► Financial sponsor-backed IPOs* continue their presence
►
►
►
►
►
►
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Globally, PE firms exited 21 companies via IPO in Q3’11, raising around US$2.9 billion (10.0% of total funds
raised). Whereas in Q2’11, there was 47 PE backed IPOs which raised US$17.8 billion (27.1%). This was a 55%
decrease by number of deals and 84% lower by total funds raised from Q2’11 to Q3’11.
US PE backed IPO listings continue to drive global PE backed IPO activity in Q3’11. There were 9 IPOs which
raised US$2.0 billion on US exchanges, this was around 7.1% of global capital raised in Q3’11.
PE backed IPO in the first nine months of 2011 reached deal volume of US$34.2 billion via 91 deals, up 64% on the
US$20.8 billion raised via 92 deals in the same period in 2010.
The largest PE backed IPO in Q3’11 was the US franchisor of quick service restaurants, Dunkin’ Brands Group Inc,
which raised US$486 million on NASDAQ.
Globally, VC firms exited 18 companies through an IPO in Q3’11, these IPO deals raised US$1.2 billion (4.2% of
global capital raised).
Global state-owned enterprise (SOE) privatization accounted for two IPOs which raised US$2.0
billion in Q3’11 (7% of global capital raised). This includes Q3’11 second largest IPO, Polish coal
producer JSW SA’s US$1.9 billion IPO on Warsaw Stock Exchange. The other IPO was by Rwanda’s
Bank of Kigali’s US$61.7 million IPO listed on the Rwanda Stock Exchange.
Around 9 out of 10 global IPOs** priced within or above their initial filing range in Q3’11:
►
►
87.0% of global IPOs in Q3’11 priced within their initial filing range – compared to a historical 10 year average of
75.9%.
Only 6.5% of IPOs priced below their initial price, while 6.5% priced above.
*Financial sponsor -backed IPOs refer to private equity backed IPO deals. A financial sponsor is defined by data provider, Dealogic as “a private equity investment firm that
acquires existing and operating companies through a leveraged or management buyout, engages in restructuring activities for the acquired companies and eventually
monetizes its positions through a sale of equity, recapitalization, secondary buyout or trade sale.”
**Analysis focuses on open-price IPOs with deal value above US$50 million that is priced above, below or within their initial filing range.
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Q3’11 Global IPO Update
Q3’11 key highlights
►
Follow-on offerings:
►
►
►
►
There were 3,291 follow-on offerings globally, which raised US$392.0 billion in the first nine months of 2011. This
compares to 3323 follow-on deals which raised US$406.6 billion in the first nine months of 2010.
Follow on offerings constitute 67% of global equity capital markets activity, while IPOs represented 23% in Q3’11.
In Q3’11, there were 770 follow-on offerings globally, which raised US$80.0 billion. This was 36% decrease by
number of deals and 52% lower by capital raised than the US$165.0 billion raised via 1207 deals in Q2’11.
Q3’11’s three largest follow-on deals are:
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The US$4.0 billion rights offering by Chinese commercial bank China CITIC Bank Corps Ltd that was dual listed on HKEx and Shanghai
in August.
Italy’s retail and merchant bank Monte dei Paschi completed their US$3.1 billion listing on Bolsa Italiana in July.
Ireland’s commercial bank, Bank of Ireland, raised US$2.7 billion via dual listing on Irish and London Stock Exchanges in July.
In the first nine months of 2011, there were 66 deals with capital raised above US$1 billion – 41 were from
developed markets, 25 were from emerging markets. Of the 66 deals, 15 deals were priced in Q3’11.
In the first nine months of 2011, emerging markets made up around 24.5% by global number of follow-on deals and
31.1% by amount of capital raised. Whereas developed markets made up around 75.5% by number of deals and
68.9% by capital raised via follow on offerings globally.
Withdrawals/postponements:
►
►
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71 IPOs have been postponed or withdrawn in Q3’11 compared with 97 deals put on hold or withdrawn during
Q2’11, according to Dealogic. Whereas, Q3’10 saw 51 postponed or withdrawn IPOs.
In the first nine months of 2011, there has been 226 postponed or withdrawn IPO. This is slightly lower than the
record of 231 postponed or withdrawn deals in the first nine months of 2008, at the height of the financial crisis.
Globally, there were 22 postponed deals and 49 withdrawn IPO deals in Q3’11:
►
►
Of the 71 deals, 22 deals were from the US, while China had 16 deals and Brazil had 5 deals. Australia and Poland had 4 deals each.
Of the 71 deals, 14 deals were financial sponsor-backed deals.
ECM = Equity Capital Markets, it includes IPO deals, follow on deals and convertibles deals.
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Q3’11 Global IPO Update
Q3’11 key highlights
Geographical analysis
By number of IPOs
►
►
►
By number of IPOs
Asia Pacific issuers continue to be the
leading region with 56.7% market
share.
EMEA and North America regions had
27.5% and 14.4% market share
respectively. Central & South America
had 1.4% market share.
Greater China, Poland and Australian
issuers were market share leaders with
90, 38 and 23 IPOs respectively.
By capital raised
►
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Industry analysis
►
The leading sectors by number of deals
were materials (72 IPOs); industrials
(48); and consumer products and
services (29). The top three sectors
accounted for 52% of total deal
numbers.
By number of IPOs
►
►
By capital raised
►
The top three sectors accounted for
59% of total deal value: financials
(US$6.8b), materials (US$ 5.8b) and
Industrials (US$4.3b).
Asia Pacific issuers was the market
share leader with 49.0% in Q3’11.
EMEA and North America were ranked
second and third with 33.8% and
15.8% market share respectively, while
Central & South America had 1.4%.
Greater China, Spain and US issuers
were market share leaders in Q3’11
with 40% (US$11.4b), 18.6%
(US$5.3b) and 13.6% (US$3.9b)
respectively.
Page 10
Exchange analysis
Q3’11 Global IPO Update
Shenzhen Stock Exchange (SME
board and ChiNext) was the most
active by number of deals, with 56
deals (19.7% of total numbers).
Warsaw’s NewConnect saw 36 deals
(12.7%), and the Australian Securities
exchange hosted 24 deals (8.4%).
By capital raised
►
►
►
Shenzhen Stock Exchange (SME and
ChiNext) raised US$5.5b in 56 IPOs
(19.3% of global proceeds).
Bolsa de Madrid ranked second, raising
US$5.3b (18.6%) in 5 IPO listings. It
hosted this quarter’s largest IPO, the
US$4.4b listing of Spanish commercial
bank, Bankia.
While Shanghai Stock exchange came
in third, raising US$3.1b (11.0%) via 9
deals.
Q3’11 key highlights
The global “Top 20 Club” (top 20 IPOs by capital raised)
►
Emerging markets represent 6 of the top 12 IPOs and 12 of the top 20 IPOs:
►
►
19 of the top 20 listed on their home exchange (as their primary exchange).
►
►
4 out of the top 20 deals were private equity-backed IPOs.
Russia’s phosphatic fertilizers manufacturer PhosAgro OAO completed a US$565 million IPO on LSE, as well as at
home exchanges MICEX and RTS.
The three largest deals (by capital raised) include:
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►
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Spanish commercial bank, Bankia, completed a US$4.4 billion offering on Bolsa de Madrid.
Poland’s coal producer JSW SA’s US$1.9 billion IPO on Warsaw Stock Exchange.
China’s supermarket operator, Sun Art Retail Group Ltd completed a US$1.2 billion IPO on HKEx.
►
The top 10 IPOs together raised US$12.5 billion which represents about 44% of global proceeds.
►
The top 20 IPOs together raised US$15.9 billion which represents about 56% of global proceeds.
►
Greater China was the source of 8 of the top 20 IPOs, while the US was the source of 4 deals:
►
2 IPO deals were from Spain. Other IPOs in the top 20 were from Poland, Malaysia, Russian Federation, UK,
Canada and India. Each country accounted for one deal each.
►
The minimum deal value required to make the top 20 was US$271 million in Q3’11, compared to the
US$311 million in Q3’10.
►
The minimum deal value to join the global Top 10 Club was US$486 million compared to
US$476 million in Q3’10.
►
The financials and industrials sectors generated four IPOs each:
►
Energy, materials and retail sectors sectors generated three deals each. Consumer products and services, health
care and real estate sectors generated one IPO each respectively.
Page 11
Q3’11 Global IPO Update
Global IPO activity: number of deals and
capital raised by year
Global IPO activity in 2010 was 153% higher than 2009 by global capital raised. Improved
economic conditions in many countries, stronger performance of global equity markets and
increasing investor optimism contributed to this increase in IPO activity in 2010.
300
1837
2014
1883
1748
2,000
1796
1,520 1,552
200
1393
1372
150
1042
876
847
1,500
961
812
1,000
769
100
577
500
50
$132
$145
$116
$177
$210
$99
$70
$58
$131
$180
$267
$295
$96
$113
$285
$141
Source: Dealogic, Thomson Financial, Ernst & Young
Page 12
Q3’11 Global IPO Update
2010
2009
2008
2007
2006
2005
Number of deals
Q1'-Q3' 2011
Capital raised (US$b)
2004
2003
2002
2001
2000
1999
1998
1997
0
1996
0
Number of IPOs
Capital raised (US$b)
250
2,500
Global IPO activity: number of deals and
capital raised by quarter
In Q3’2011, there were three deals with capital raised above US$1 billion. Of the top 10
IPOs (by capital raised), six deals were from emerging countries. Of the top 20 IPOs, 12
deals were from emerging countries.
140
700
608
574
457
100
80 339
600
484
473
452
500
409
385
383
442
339
327
395
364
60
360
297 293
274
355
253
40
164
294
400
284
52
300
200
146
78
20
314 302
82
100
$29 $33 $29 $39 $29 $39 $38 $74 $39 $66 $49 $112 $37 $95 $59 $105 $41 $39 $13 $2 $1.4 $10 $34 $67 $54 $47 $53 $132 $47 $66 $28
Capital raised (US$b)
Source: Dealogic, Thomson Financial, Ernst & Young
Page 13
Q3’11 Global IPO Update
Number of deals
Q3'11
Q2'11
Q1'11
Q4'10
Q3'10
Q2'10
Q1'10
Q4'09
Q3'09
Q2'09
Q1'09
Q4'08
Q3'08
Q2'08
Q1'08
Q4'07
Q3'07
Q2'07
Q1'07
Q4'06
Q3'06
Q2'06
Q1'06
Q4'05
Q3'05
Q2'05
Q1'05
Q4'04
Q3'04
Q2'04
0
Q1'04
0
Number of IPOs
120
Capital raised (US$b)
603
Global IPO activity: number of deals and
capital raised by month
September 2011 generated 60 IPO listings which raised US$4.0billion altogether. This is
the lowest monthly capital raised since May 2009 (US$2.4 billion from 27 deals).
60
200
178
180
143
134
140
121
40
110
107
97
30
160
144
163
87
128
85
107
99
132
120
90
108
82
92
87
100
60
20
80
60
40
10
20
$12
$12
$30
$20
$13
$13
$32
$11
$9
$52
$52
$27
$13
$12
$21
$19
$28
$19
$17
$7
$4
Capital raised (US$b)
*Date up to end of 27th September
Source: Dealogic, Thomson Financial, Ernst & Young
Page 14
Q3’11 Global IPO Update
Number of deals
Sep'11
Aug'11
Jul'11
Jun'11
May'11
Apr'11
Mar'11
Feb'11
Jan'11
Dec'10
Nov'10
Oct'10
Sep'10
Aug'10
Jul'10
Jun'10
May'10
Apr'10
Mar'10
Feb'10
0
Jan'10
0
Number of IPOs
Capital raised (US$b)
50
Global IPO activity: distribution of IPOs by
world region (by number of deals)
Q3’10
North
America
10%
Q3’11
Central &
South
America
1%
North
America
14%
Europe,
Middle
East and
Africa
21%
AsiaPacific
68%
Europe,
Middle
East and
Africa
28%
Central &
South
America
4%
North
America
14%
AsiaPacific
54%
Europe,
Middle
East and
Africa
28%
Source: Dealogic, Thomson Financial, Ernst & Young
Page 15
Q2’11
Q3’11 Global IPO Update
Central &
South
America
1%
AsiaPacific
57%
Global IPO activity: distribution of IPOs by
world region (by capital raised)
Q3’10
Europe, North
Middle America
East and 8%
Africa
7%
Q3’11
Central &
South
America
1%
North
America
16%
Central &
South
America
1%
AsiaPacific
49%
Central &
South
America
8%
AsiaPacific
84%
North
America
18%
AsiaPacific
40%
Europe,
Middle
East and
Africa
34%
Source: Dealogic, Thomson Financial, Ernst & Young
Page 16
Europe,
Middle
East and
Africa
34%
Q2’11
Q3’11 Global IPO Update
Q3’10 versus Q3’11 global IPOs by region
Number of deals
percentage
of global IPO
activity
68
57
21
28
10
14
Capital raised, US$ billion
1
1
84
49
7
34
8
16
1
1
$50
250
$44
204
$40
200
161
$30
150
$20
100
78
$14
64
41
50
$10
$10
31
$4
3
4
0
Asia-Pacific
Q3'10
EMEA
North America Central and
South America
Q3'11
Source: Dealogic, Thomson Financial, Ernst & Young
Page 17
Q3’11 Global IPO Update
$4 $4
$0.4$0.4
$0
Asia-Pacific
EMEA
Q3'10
North America Central and
South America
Q3'11
Q3’11 Global IPO activity (by region and
number of deals)
Greater China lead by number of deals, followed by Poland and US
Asia-Pacific
North America
US
Canada
7.4% (21)
7.0% (20)
14%
28%
57%
Gr. China*
Australia
India
South Korea
Indonesia
Japan
Singapore
Sri Lanka
Thailand
Malaysia
31.7% (90)
8.1% (23)
4.2% (12)
4.2% (12)
2.1% (6)
2.1% (6)
1.8% (5)
1.1% (3)
0.7% (2)
0.4% (1)
EMEA
Central & South America
Jamaica
Brazil
Mexico
0.7%(2)
0.4%(1)
0.4%(1)
1%
Poland
UK
France
Spain
South Africa
Turkey
Russian Fed
Saudi Arabia
Germany
Ukraine
13.4%(38)
4.2%(12)
1.8% (5)
1.8% (5)
1.1% (3)
1.1% (3)
0.7% (2)
0.7% (2)
0.4% (1)
0.4% (1)
Developing countries made up 67% of the number of deals globally and 60% of the total global capital raised.
BRICs together raised US$12.5 billion (44% of total capital raised) in 95 deals (33% of total deal numbers).
*Greater China includes Mainland China (80 deals), Hong Kong (7) and Taiwanese (3) issuers. Based on the listed company domicile country
Source: Dealogic, Thomson Financial, Ernst & Young
Page 18
Q3’11 Global IPO Update
Q3’11 Global IPO activity (by region and
capital raised)
Greater China lead by total capital raised (US$b), followed by Spain and US
North America
US
Canada
Asia-Pacific
Gr. China*
Malaysia
India
Australia
South Korea
Philippines
Japan
Singapore
Indonesia
13.6% ($3.9b)
2.2% ($0.6b)
16%
34%
39.9% ($11.4b)
3.1% ($0.9b)
1.8% ($0.5b)
1.6% ($0.5b)
0.7% ($0.2b)
0.6% ($0.2b)
0.5% ($0.1b)
0.4% ($0.1b)
0.2% ($0.1b)
49%
EMEA
Central & South America
Brazil
Mexico
Jamaica
0.8% ($0.2b)
0.5% ($0.2b)
0.1% ($6m)
1%
Spain
Poland
UK
Russian Fed
South Africa
Saudi Arabia
France
Germany
Ukraine
Rwanda
18.6% ($5.3b)
7.0% ($2.0b)
2.3% ($0.7b)
2.0% ($0.6b)
1.5% ($0.4b)
0.8% ($0.2b)
0.4% ($0.1b)
0.3% ($88m)
0.3% ($82m)
0.2% ($62m)
Of the 3 deals with capital raised above US$1 billion, 2 were from emerging markets. Six of the top 10 IPOs and 12
of the top 20 IPOs (by capital raised) were from emerging countries.
*Greater China includes Mainland China (US$10.6b), Hong Kong ($91m) and Taiwanese ($49m) issuers . Based on the listed company domicile country
Source: Dealogic, Thomson Financial, Ernst & Young
Page 19
Q3’11 Global IPO Update
Global IPO activity: by industry and % of
global number of deals
% of global number of deals
30%
25%
25%
22%
20%
17%18%
15%
12%
10%
10%
9%
7%
6%
6%
7% 8%
8%
8%
6%
6%
5%
4%
4% 4%
2%
3%
4%
2% 2%
Q3'11
Source: Dealogic, Thomson Financial, Ernst & Young
Page 20
Q3’11 Global IPO Update
Q3'10
Telecommunications
Real estate
Retail
Media & Entertainment
Financials
Consumer staples
Health care
Energy & power
High technology
Consumer products & services
Industrials
Materials
0%
Global IPO activity: by industry and % of
global capital raised
51%
50%
40%
30%
24%
20%
10%
10%
7%
3%
9%
4%
5%
5%
2%
1%
4%
4% 2%
3% 3%
2% 1%
1% 1%
Telecommunications
15%
12%
Media & entertainment
11%
Consumer staples
20%
Health care
% of global capital raised
60%
Q3'11
Source: Dealogic, Thomson Financial, Ernst & Young
Page 21
Q3’11 Global IPO Update
Q3'10
High technology
Real estate
Consumer products & services
Energy & power
Retail
Industrials
Materials
Financials
0%
Q3’11 Global IPO activity: by stock
exchanges*
Top 12 by number of deals
Exchange
Top 12 by capital raised
percentage
of global
total
No. of
deals
Exchange
Capital
raised
(US$m)
percentage
of global
total
Shenzhen Stock Exchange (SZE)**
56
19.7%
Shenzhen Stock Exchange (SZE)**
$5,481
19.3%
NewConnect - Warsaw
36
12.7%
Bolsa de Madrid
$5,293
18.6%
Australian Securities Exchange (ASX)
24
8.5%
Shanghai Stock Exchange (SSE)
$3,119
11.0%
17
6.0%
Hong Kong Exchanges & Clearing Ltd
(HKEx)
$2,504
8.8%
16
5.6%
New York Stock Exchange (NYSE)
$2,199
7.7%
13
4.6%
Warsaw Stock Exchange (WSE)
$2,029
7.1%
Bombay Stock Exchange (BSE)
12
4.2%
NASDAQ
$1,731
6.1%
KOSDAQ
11
3.9%
London Stock Exchange (LSE)
$950
3.3%
NASDAQ
11
3.9%
Bursa Malaysia
$888
3.1%
Shanghai Stock Exchange (SSE)
9
3.2%
Australian Securities Exchange (ASX)
$549
1.9%
New York Stock Exchange (NYSE)
8
2.8%
Toronto Stock Exchange (TSX)
$546
1.9%
Euronext
5
1.8%
Bombay Stock Exchange (BSE)
$506
1.8%
66
23.2%
$2,673
9.4%
284
100%
$28,469
100%
Hong Kong Exchanges & Clearing Ltd
(HKEx)
Toronto Venture Exchange - TSX-V
London Alternative Investment Market
(AIM)
All other exchanges
Global total
*Data based on domicile of the exchange, regardless of the listed company domicile
**Shenzhen Stock Exchange includes listings on Mainboard (SME) and ChiNext
Source: Dealogic, Thomson Financial, Ernst & Young
Page 22
Q3’11 Global IPO Update
All other exchanges
Global total
Q3’10 Global IPO activity: by stock
exchanges*
Top 12 by number of deals
Top 12 by capital raised
No. of
deals
percentage
of global
total
Shenzhen Stock Exchange (SZE) **
79
26.1%
NewConnect – Warsaw
26
Australian Securities Exchange (ASX)
Exchange
Exchange
Capital
raised
(US$m)
percentage
of global
total
Shanghai Stock Exchange (SSE)
$15,631
29.7%
8.6%
Hong Kong Exchanges & Clearing Ltd (HKEx)
$14,123
26.9%
19
6.3%
Shenzhen Stock Exchange (SZE)**
$9,952
18.9%
Hong Kong Exchanges & Clearing Ltd
(HKEx)
19
6.3%
New York Stock Exchange (NYSE)
$3,371
6.4%
New York Stock Exchange (NYSE)
17
5.6%
NASDAQ
$2,173
4.1%
Bombay Stock Exchange (BSE)
17
5.6%
London Stock Exchange (LSE)
$1,614
3.1%
NASDAQ
16
5.3%
Bombay Stock Exchange (BSE)
$1,005
1.9%
KOSDAQ
13
4.3%
Toronto Stock Exchange (TSX)
$730
1.4%
London Alternative Investment Market
(AIM)
8
2.6%
Korea Stock Exchange (KSE)
$517
1.0%
Bursa Malaysia
8
2.6%
Deutsche Borse
$493
0.9%
Jakarta Stock Exchange
7
2.3%
Australian Securities Exchange (ASX)
$485
0.9%
Toronto Venture Exchange (TSX-V)
7
2.3%
Indonesia Stock Exchange (IDX)
$426
0.9%
66
22.1%
$2,031
3.9%
All other exchanges
Global total
302
100.0%
All other exchanges
Global total
*Data based on domicile of the exchange, regardless of the listed company domicile
**Shenzhen Stock Exchange includes listings on Mainboard (SME) and ChiNext
Source: Dealogic, Thomson Financial, Ernst & Young
Page 23
Q3’11 Global IPO Update
$52,549
100.0%
Emerging markets: IPO activity by year in the
BRIC countries
Emerging market continues to drive global IPO activity in Q3’11 (67% by global deals and
60% by global capital raised). Emerging markets issuers raised US$17.2b from 191 IPO
deals in Q3’11. There were 95 IPOs which raised US$12.5 billion by BRIC issuers.
573
140
100
344
80
284
60
40
176
91
300
199
163
148
200
109
100
Source: Dealogic, Thomson Financial, Ernst & Young
Page 24
Q3’11 Global IPO Update
$65
$130
$59
Q1'-Q3' 11
Capital raised (US$b)
$28
2010
$121
2009
$88
2008
2004
$30
2007
$18
2006
$13
2005
$9
2003
20
0
400
Number of deals
0
Number of IPOs
500
433
2002
Capital raised (US$b)
120
600
Emerging markets: IPO activity by quarter in
the BRIC countries
In Q3’11, 2 of the 3 deals with capital raised above US$1 billion were from emerging
markets. Of the top 10 IPOs (by capital raised), 6 deals were from emerging countries. Of
the top 20 IPOs, 12 deals were from emerging countries.
136
123126
115
30
124
132
121
37
58 60
40
35 34
10
150
128
95
73
70
20
21
49
60
37
29
50
6 12
Source: Dealogic, Thomson Financial, Ernst & Young
Q3’11 Global IPO Update
Number of deals
Q3'11
Q2'11
Q1'11
Q4'10
Q3'10
Q2'10
Q1'10
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Q405
Q305
Q205
Q105
Q404
Q304
Q204
$4 $6 $3 $5 $4 $8 $4 $15 $7 $18 $18 $44 $13 $37 $28 $43 $13 $11 $3 $0 $0 $7 $23 $35 $26 $20 $42 $42 $21 $25 $13
Capital raised (US$b)
100
57
46
7
Page 25
123
91 93
Q104
Capital raised (US$b)
40
0
200
182
0
Number of IPOs
50
Q3’11 Top 20 IPOs by capital raised
Issue
month
Issuer name
Domicile
country
Sector
Issuer business description
Jul
Bankia
Spain
Financials
Commercial bank
4,424 Madrid
Jul
JSW SA
Poland
Materials
Coal producer and distributor
1,923 Warsaw
Jul
Sun Art Retail Group Ltd
China
Retail
Hypermarket operator
1,217 Hong Kong
Aug
Founder Securities Co Ltd
China
Financials
Securities company
905 Shanghai
Jul
Bumi Armada Bhd
Malaysia
Industrials
Provider of marine transportation,
engineering and support services to
offshore oil and gas companies
888 Kuala Lumpur
Jul
Banca Civica SA
Spain
Financials
Commercial bank
857 Madrid
Aug
SandRidge Permian Trust
US
Energy
Oil trust
621 New York
Sep
Great Wall Motor Co Ltd
China
Industrials
Chinese truck and sport-utility
vehicle maker.
621 Shanghai
Jul
PhosAgro OAO
Russian
Materials
Federation
Phosphatic fertilizers manufacturer
565
Jul
Dunkin' Brands Group Inc
US
Franchisor of quick service
restaurants
486 Nasdaq
Retail
Source: Dealogic, Thomson Financial, Ernst & Young
Page 26
Q3’11 Global IPO Update
Capital
raised
(US$m)
Exchange(s)
Type of IPO
Former SOE
London, MICEX,
RTS
PE backed
Q3’11 Top 20 IPOs by capital raised
Issue
month
Issuer name
Domicile
country
Sector
Issuer business description
Capital
raised
(US$m)
Exchange(s) Type of
IPO
Sep
Beijing Jingyuntong
Technology Co Ltd
China
Materials
Manufacturer of vacuum crystal growing
equipment and crystal-silicon materials
395 Shanghai
Jul
Ophir Energy plc
United
Kingdom
Energy
Oil and gas extraction firm
385 London
Jul
C&J Energy Services Inc
US
Energy
Provider of coiled tubing and pressure pumping
services to the oil and gas industry
384 New York
Aug
Zhejiang Kaishan
Compressor Co Ltd
China
Industrials
Engaged in developing, producing and selling air
compressors and mainly for industrial enterprises
351
Jul
Shijiazhuang Yiling
Pharmaceutical Co Ltd
China
Health care
Manufacturer of hormonial products, cancer drugs,
new agents as well as herbal medicine, health
products and dietary supplements
347 Shenzhen
Aug
Beijing Jangho Curtain Wall
Co Ltd
China
Consumer
products and
services
Manufacturer of curtain walls, windows and other
stainless steel products
340 Shanghai
Aug
Dundee International Real
Estate Investment Trust
Canada
Real estate
Real Estate Investment Trust
323 Toronto
Jul
Wesco Aircraft Holdings Inc
US
Industrials
Distributor and provider of supply chain
management services to the aerospace industry
315
Aug
L&T Finance Holdings Ltd
India
Financials
Provider of financial products and services to the
corporate, retail and infrastructure finance sectors
279
Aug
Lancy Co Ltd
China
Retail
Engaged in sales, import and export of women's
clothing
271 Shenzhen
Shenzhen Chinext
New York
Page 27
Q3’11 Global IPO Update
PE backed
IPO
PE backed
IPO
Bombay,
National
Total capital raised by top 20 IPOs:
Total global capital raised in Q3’11:
% of top 20:
Source: Dealogic, Thomson Financial, Ernst & Young
PE backed
IPO
US$15.9b
US$28.5b
56%
Global number of IPOs* by pricing range
While price-sensitive investors grew more cautious after mixed performances of some highprofile IPOs, 87.0% of global IPOs* in Q3’11 priced within their initial filing range, while 6.5%
were priced above. Only 6.5% of IPOs were priced below their initial filing range.
300
200
198
150
185
238
203
155
102
125
Below
3
1
17
5
24
4
17
6
25
11
11
10
17
7
7
Q1'11
Q2'11
Q3'11
24
18
6
Q4'10
21
2
6
Q3'10
Q3'07
3
Q2'10
Q1'07
12
2
7
3
Q1'10
Q3'06
5
1
24
2
Q4'09
Q2'06
39
Q3'09
Q1'06
Above
29
Q2'09
Q3'05
16
14
Q1'09
Q2'05
26
10 19
21 21
Q4'08
15
6
74
Q3'08
21
13
Q2'08
5
14
Q1'08
10 20
21 18
65
32
Q4'07
21
9
28
Q2'07
0
12
7
Page 28
125
93
63
53
Source: Dealogic
153
93
66
50
Q1'05
72
133 144
118
115
102
Q4'06
100
Q4'05
Number of deals
250
In range
*Chart shows the number of open-price IPOs with deal value above US$50m that is priced above, below or within
their initial filing range
Q3’11 Global IPO Update
Global follow-on activity: number of deals
and capital raised by year
Global follow-on activity reached record highs worldwide in 2009, accounting for 78% of global
equity issuance. In the first nine months of 2011, there were 66 deals with capital raised above
US$1 billion – 41 were from developed markets, 25 were from emerging markets.
50
45
51
50
57
59
51
53
69
78
62
67
900
6,000
5,067
Capital raised (US$b)
800
700
5,000
3,999
600
3,442
500
3,542
3,291
2,777
400
300
5,055
4,676
1,642
1,682
2,766
4,000
3,000
1,970
2,000
200
1,000
100
$325
$215
$194
$247
$337
$381
$433
$553
$553
$842
$641
$392
ECM = Equity Capital Markets, it includes IPO deals, Follow on deals and Convertibles deals
Source: Dealogic, Thomson Financial, Ernst & Young
Page 29
Q3’11 Global IPO Update
2010
2009
2008
2007
Number of deals
Q1'-Q3' 2011
Capital raised (US$b)
2006
2005
2004
2003
2002
2001
0
2000
0
Number of IPOs
FO as % of
global ECM
activity
Appendix: definitions
►
►
The data presented in the Ernst & Young Global IPO trends 2011 report and Quarterly Global IPO update and press
releases are from Dealogic, Thomson Financial and Ernst & Young.
For the purposes of these reports and press releases, we focus only on IPOs of operating companies and define an
IPO as follows:
►
►
►
A company’s first offering of equity to the public
This report includes only those IPOs for which Dealogic, Thomson Financial and Ernst & Young 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-allottment 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:
6091: 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 nation of the company undertaking an IPO.
The primary exchange on which they are listed is as defined by Dealogic, Thomson Financial and Ernst & Young
research. A foreign listing is where the stock exchange nation of the company is different from the company's domicile
nation (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 30
Q3’11 Global IPO Update
Appendix: definitions
►
Geographic definitions:
►
►
►
►
►
►
►
►
►
►
►
Asia includes Bangladesh, Greater China, India, Indonesia, Japan, Laos, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri
Lanka, Thailand, Vietnam
Greater China includes Mainland China, Hong Kong, Taiwan and Macau only
Asia Pacific includes Asia (as stated above) plus Australia, New Zealand, Fuji and Papau New Guinea
Central and South America includes Argentina, Bermuda, Brazil, Chile, Colombia, Ecuador, Jamaica, Mexico, Peru and Pureto 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, United Kingdom
Middle East includes Bahrain, Iran, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen
Africa includes Algeria, Botswana, Egypt, Ghana Kenya, Madagascar, Malawi, Morocco, Namibia, Rwanda, South Africa, Tanzania, Tunisia,
Uganda, Zambia, Zimbabwe
North America consist of 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 etc.
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 etc.
State-owned enterprise (SOE) privatizations refers to former state-owned entities that have completed its IPO listings
to become public companies.
Page 31
Q3’11 Global IPO Update
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