Global Technology: IPO Review Full-year and Q42017

Global Technology IPO Review Full-year and Q4 2017 Global Technology IPO Review Full-year and Q4 2017 1 The global tech IPO market closed 2017 with recovery and hope for resurgent 2018 * Raman Chitkara Partner and Global Technology Industry Leader PricewaterhouseCoopers LLP raman.chitkara@us.pwc.com After a sluggish 2016, the global technology IPO market rebounded in 2017 against the backdrop of a stable economy, strong performance of capital markets, and decreasing market volatility in many regions. The total proceeds reached US$25.1 billion with the number of IPOs reaching 100. The Asian market continued to dominate, contributing 65% of the total listings for the year. The China IPO market outpaced the United States with the number of listings; however, a lack of a mega IPO in China left that market unable to match the proceeding of total US IPOs. The US technology IPO market picked up pace in 2017 with a total of 24 listings raising US$8.1 billion. However, the US tech IPO market underperformed in 2017 when compared to the positive investment climate created by the strong bull capital markets. While the US did well in terms of proceeds, it received stiff competition from China. Cross-border listings in the US from China declined as more companies opted for IPOs in their home markets. The year also witnessed some mega IPO deals across various geographies including Snap Inc., Netmarble Games Corporation, Landis+Gyr Group AG, and China Literature Limited; however, these could not raise the total proceeds to match or exceed the 2014 and 2015 numbers. Against a background of uncertainties associated with Brexit, the UK numbers failed to paint a happier picture. On a positive note, the country did have two IPOs this year compared to 2016, which had no listings. From a subsector perspective, Internet Software & Services maintained its dominance with 27 IPOs raising US$13.7 billion, while the Electronics subsector emerged as a new star. Where the United States Securities and Exchange Commission decided to make the IPO process easier, the China Securities Regulatory Commission introduced stringent measures to make the IPO process more transparent with a goal to improve the quality of the companies being listed. The UK’s Financial Conduct Authority has also introduced new rules for UK IPOs that will come into force from July 1, 2018. With the global economy embarking on growth momentum and major markets demonstrating a high level of optimism, 2018 is starting on a positive note for tech IPOs. Sincerely, *Issue size greater than US$40 million (includes overallotment) and based on trade date; See Methodology Table of contents 1. Full-year 2017 global tech IPO summary 3 2. A close look at full-year 2017 technology IPOs 9 Geographic IPO trends – full-year 2017 ........................................................................................................................................ 9 Europe and the UK ................................................................................................................................................................... 9 China ....................................................................................................................................................................................... 10 United States ........................................................................................................................................................................... 11 Full-year 2017 tech IPOs – Offering details ............................................................................................................................ 12 3. Q4 2017 global tech IPO summary 18 Q4 2017 top 10 technology listings ................................................................................................................................................ 19 Q4 2017 geographic tech IPO trends ............................................................................................................................................. 21 US ............................................................................................................................................................................................ 22 China ....................................................................................................................................................................................... 23 Europe (excluding the UK) ..................................................................................................................................................... 24 UK ........................................................................................................................................................................................... 25 Asia (excluding China) ..................................................................................................................