There have been more IPOs on Asia-Pacific exchanges so far this year than in any other region, with 339 new listings compared to 215 IPOs in the same period in 2013, according to the quarterly EY Global IPO Trends: 2014 Q3.
Proceeds are also up, with US$47.4b in capital raised in 2014 – a 51% year-on-year increase.
Hong Kong has been the busiest exchange in the region in 2014, with 64 IPOs raising US$16.7b. However, Australia, Tokyo and Shenzhen also rank in the top 10 by capital raised, accounting for 4.6%, 3.2% and 2.5% of global proceeds respectively.
Consumer staples is the leading sector by proceeds, with 14.0% of the region’s capital raised, ahead of technology (12.5%) and energy and power (12.5%). The industrials sector has seen the highest number of IPOs with 56 deals, followed by technology with 43 listings.
Global IPO activity
Global IPO activity continues to climb with 851 IPOs raising US$186.6b in the first nine months of the year, a 49% increase in volume and 94% increase in proceeds compared to the same period in 2013, according to the quarterly EY Global IPO Trends: 2014 Q3.
After a quiet August, in which some US-bound companies waited in anticipation of the Alibaba listing, the third quarter posted 260 IPOs, raising US$67.1b, up 29% and 162% respectively on Q3’13.
Companies from a broad spread of industries continue to come to market. Year-to-date, the technology sector leads by capital raised with a total of US$42.9b via 107 IPOs, driven by Alibaba’s record US$25b listing.
Health care has seen the most new listings with 148 IPOs representing 17.4% of global deal numbers, and energy and power and the financial sector both continue to perform well on both measures.
Financial sponsor-backed IPOs remain a key driver of activity, raising US$105.3b in proceeds through 264 IPOs, which represents 56% and 31% of the global total respectively.
2014 is now the best year for PE-backed IPOs since the turn of the century, with the first nine months of 2014 surpassing 2013 totals by capital raised.
“A combination of good corporate earnings growth and a lack of alternative investment options mean that risk appetite is focused on equities – and IPOs in particular," says Maria Pinelli, EY’s Global Vice Chair of Strategic Growth Markets.
Pinelli notes that global IPO activity this year could be the strongest since 2007 and the start of the financial crisis if macroeconomic conditions remain stable, financial sponsors continues to favor IPO exits and more Chinese listings materialize.