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.
"Economic fundamentals are improving in the major developed economies and IPO pipelines are building,” says Dr. Martin Steinbach, EY Global and EY EMEIA IPO Leader. “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.
"Asia-Pacific's position as the leading center of IPO activity will remain unchallenged through the remainder of 2017,” comments Ringo Choi, EY Asia-Pacific IPO Leader. “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).
"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," says Jackie Kelley, EY Americas IPO Markets Leader.
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."