Asia-Pacific exchanges saw more IPOs in the first half of 2014 than any other region with 217 deals raising US$33.7 billion, an increase of 64% and 45% respectively on the first half of 2013, according to EY Global IPO Trends: 2014 Q2.
Four of the 20 largest IPOs in the first half of 2014 were on Asian exchanges – three IPOs on Hong Kong and one IPO on Tokyo Stock Exchange. However, activity slowed down in Q214 compared to the first quarter of the year.
“After a bumper start to the year with the reopening of Mainland China’s exchanges to new listings, activity slowed due to approvals again being placed on hold for most of the second quarter,” says Ivan Tong, EY’s Assurance & Advisory Business Services Partner.
“But with a further 100 Chinese companies now expected to list in this year and solid investor confidence across a range of markets including Hong Kong, Japan and Australia, the stage is set for considerable, albeit constrained, IPO activity in the second half of the year.”
Global IPO activity up
Globally, there were a total of 588 deals raising around US$117.7 billion in the first six months of the year, an increase of 60% and 67% respectively on the same period in 2013 and the highest amount of capital raised in the first half since 2007.
In Q214, there were 333 IPOs raising US$70.7 billion, a 30.6% increase on the previous quarter and a rise of 62.4% compared to Q213 by deal numbers.
Activity was spread broadly across sectors, with health care the most active in the first half of the year, with 103 IPOs, more than double the volume in the same period in 2013.
Technology IPOs doubled in number (78 IPOs), while energy raised the most capital through IPOs in the first six months of 2014 (US$17.6 billion).
“We expect a significant uptick of IPOs in the second half of 2014 from the financial, real estate, health care, technology and consumer products and services sectors, which will benefit from an increase in consumer confidence,” says Terence Ho, EY’s Greater China IPO Leader.