Global IPOs in H1 2017 rebound from market uncertainty with most activity since 2007

LONDON, June 27, 2017 /PRNewswire/ -- The global IPO market in the first half of 2017 is off to one of its strongest starts in nearly a decade. H1 2017 saw proceeds rise by 90% (US$83.4b) and the number of deals increase by 70% (772 IPOs) compared with the first half of 2016. What's more, with 772 IPOs raising US$83.4b, H1 2017 was the most active first half of a year by global number of IPOs since H1 2007. These and other findings were published today in the latest EY Global IPO Trends: Q2 2017.

The Asia-Pacific region leads the global IPO market in terms of volume and proceeds, accounting for 61% (468) of IPOs worldwide and 44% (US$37b) of global proceeds – the highest first half of a year of activity for the region since 2002. Meanwhile, the Americas region accounting for 13% of global IPOs (99 IPOs raising US$25.8b), was led by the US where it saw its own activity surge with proceeds swelling by 216%. EMEIA representing 26% of global IPOs saw modest gains despite geopolitical uncertainties compared with its H1 2016 performance, with volume increasing by 22% (205) and proceeds increasing by 9% (US$20.5b) in the first half of the year.

Dr. Martin Steinbach, EY Global and EY EMEIA IPO Leader, says:

"Economic fundamentals are improving in the major developed economies and IPO pipelines are building. Activity is underpinned by rallies in many bull markets reaching all-time highs, while investor sentiment has brightened and global outlook is positive. With the momentum of the first half, 2017 is poised to surpass 2016 global IPO levels by both number and proceeds."

Asia-Pacific dominates global IPOs

Although IPO activity was slightly down in Q2 2017 compared with the first quarter, Asia-Pacific continued to dominate activity globally. Activity was broadly spread throughout the region with Greater China exchanges the busiest in H1 2017 with 317 IPOs ahead of Australia (& New Zealand) (45), Southeast Asia (48), Japan (38) and South Korea (20). The region also hosted two of the world's three largest IPOs in H1 2017 and saw ten deals greater than US$500m.

Ringo Choi, EY Asia-Pacific IPO Leader, comments:

"Asia-Pacific's position as the leading center of IPO activity will remain unchallenged through the remainder of 2017. While Greater China continues to lead the way, other markets are also seeing considerable activity. Australia ranked fourth among global stock exchanges by deal volume, while Korea made a significant contribution to total proceeds in H1 2017, with mega IPOs from the technology and financial sectors."

Americas shines with positive outlook and robust pipeline in US

US IPO activity in H1 2017 easily surpassed its H1 2016 performance in terms of both number and proceeds. A total of 80 IPOs raised US$22b, an increase of 216% in terms of proceeds raised and 82% by deal number. In the Americas overall, H1 2017 saw median deal size rise by 78% from US$65.8m in H1 2016 to US$117.1m.

Eight of the top twenty deals in H1 2017 originated from Canadian, Mexican and US exchanges. In terms of proceeds, NYSE regained the top spot among the world's exchanges, hosting three of the year's top ten global deals including the largest, and the first US technology listing of the year. NASDAQ ranked eighth in the world by proceeds (US$3.1b).

Jackie Kelley, EY Americas IPO Markets Leader, says:

"The sentiment is strong for the second half of 2017. More marquee company names have entered the filing process and first-day performances remain steady. This combination has been the catalyst for building a solid pipeline for the remainder of the year. While fiscal and policy regulation remains uncertain, the markets have been insulated to this and continue to experience low volatility."

IPOs holding steady in EMEIA with India posting strong gains

Supported by a strong increase (216%) in European deal proceeds in Q2 2017 compared with Q1 2017, the EMEIA region accounted for 26% of global IPOs by deal number. EMEIA raised US$20.5b in H1 2017, a slight increase of 9% (US$18.9b) compared with H1 2016. With a total of 205 IPOs, EMEIA remains the second most active market behind Asia-Pacific. Deal volume for the region increased by 22% over H1 2016. 

Looking more closely, India and the Nordics were the most active IPO markets in EMEIA. India has been particularly strong, posting US$2.3b in proceeds from 57 IPOs in H1 2017. The NASDAQ OMX and First North exchange was the most active IPO market in Europe by deal number in H1 2017 with 44 IPOs, which raised US$2.2b – its highest level of deal activity in the last 15 years for the first half of a year.

Steinbach says: "Despite geopolitical uncertainties in the first half, activity in EMEIA is increasing, representing the second most active IPO market globally. Based on a very solid reporting season and momentum from the first half of 2017, prospects are brightening in many economies buoyed by accommodative monetary policy, soaring equity indices and low volatility, all of which encourage positive investor sentiment."

Notes to Editors

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

About the data

Analysis included on this press release includes all deals listed up to 16 June and EY's expectation of deals that will close in the rest of the month. Data sourced from Dealogic as of 17 June 2017.  January 2017 through June 2017 (i.e., H1 2017) IPO activity is based on priced IPOs as of 16 June and expected IPOs by the end of June.

Appendix: January 2017 – June 2017 global IPOs by sector

About EY's IPO offering

EY is a leader in helping companies go public worldwide. With decades of experience, our global network is dedicated to serving market leaders and helping businesses evaluate the pros and cons of an initial public offering (IPO). We demystify the process by offering IPO readiness assessments, IPO preparation, project management and execution services, all of which help prepare you for life in the public spotlight. Our Global IPO Center of Excellence is a virtual hub, which provides access to our IPO knowledge, tools, thought leadership and contacts from around the world in one easy-to-use source. ey.com/ipocenter

Peter Kelley
EY Global Media Relations
+1 424 376 7227
[email protected]

SOURCE EY

Related Links

http://www.ey.com