IPO Watch Europe Survey Q1 2013 · 2015. 6. 3. · PwC 15.9% 5.9% 13.4% N/A 0.0% as at 31 Mar 34.0%...
Transcript of IPO Watch Europe Survey Q1 2013 · 2015. 6. 3. · PwC 15.9% 5.9% 13.4% N/A 0.0% as at 31 Mar 34.0%...
IPO Watch Europe Survey
Q1 2013
www.pwc.com
PwC
Contents
2 PwC Q1 2013 IPO Watch Europe Survey
Quarterly European IPO activity by value and volume 3
Market volatility index and stock market performance 4
European post-IPO performance 5
IPO offering value 6
IPO volume 7
Top five IPOs 8
IPO value and volume by sector 9
Global post-IPO performance 10
US overview 11
Focus on Russia and Turkey 12
IPOs by market 13
About IPO Watch Europe 14
PwC Q1 2013 IPO Watch Europe Survey
IPO proceeds rose by 37% in Q1 2013 compared with the first quarter of 2012,
driven by the IPO of LEG Immobilien on the Deutsche Börse and a surge of
domestic IPOs in London
3
* Average offering value has been calculated based on total offering value over the number of listings raising money.
Quarterly European IPO activity by value and volume
Total money raised (€m) 3,157 2,297 7,538
Average offering value (€m) * 99 51 128
Q1 2013 Q1 2012 Q4 2012
Total European listings comprise those with:
No money raised 12 11 11
Money raised 32 45 59
Total number of listings 44 56 70 56
81
56
70
44
€2,297
€726 €367
€7,538
€3,157
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1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
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10
20
30
40
50
60
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100
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Valu
e o
f IP
Os (€m
)
Volu
me o
f IP
Os
IPOs Value €m
IPO activity rapidly materialised after the Christmas break, almost taking the markets by surprise as companies moved quickly to take advantage of the uptick in the FTSE index and low volatility. The financial markets have proved more resilient in Q1 2013. Economic factors that dissuaded investors in recent years do not appear to have had a negative impact in Q1. Q1 saw the first UK Private Equity (PE)-backed IPOs on London’s Main Market since AZ Electronic Materials in October 2010 and may pave the way for IPOs of other PE-backed companies as the year unfolds.
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0
5
10
15
20
25
30
35
40
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2,000
4,000
6,000
8,000
10,000
12,000
VIX
In
dex
Mo
ney r
ais
ed
(€m
)
Volatility compared with IPO proceeds
Money raised (€m) VIX Index
PwC Q1 2013 IPO Watch Europe Survey
Companies have taken advantage of encouraging market conditions -
volatility has remained relatively low since August 2012 and stock market
indices have strengthened significantly since the turn of the year
4
Source: VIX Volatility Index
Source: Exchange websites
Eurozone financial crisis
IPO of Bankia, Dia and Banca Cívica in
Spain, Phosagro in London and JPW in
Poland
Sovereign debt crisis
Greek and Spanish bailouts and downturn in global economic growth
IPO of
Talanx,
Telefónica
Deutschland
and Direct
Line IPO of LEG,
Crest
Nicholson,
Esure and
Countrywide
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
30%
35%
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
Stock market indices - trading performance
CAC 40 FTSE 100 DAX
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15.9%
5.9%
13.4%
0.0%
34.0%
3.5%
11.4%
5.0% 1 Day
as at 31 Mar 2013
PwC Q1 2013 IPO Watch Europe Survey 5
Post-IPO performance of the top transactions in Europe has been strong in
the quarter. Additionally, the top transactions all priced within their
published price ranges, including four PE-backed IPOs.
IPO date 18 February 27 March 25 March 01 February 2 April
No Yes Yes No Yes PE-backed
Crest Nicholson
Esure Countrywide LEG Immobilien
Hellermann Tyton
IPO price versus range
Post IPO performance
0.3 0.7 0.2 1.2 0.3 Money raised (€bn)
Source: PwC analysis, Stock Exchange official websites
Note – excludes investment companies
Early April
Yes
Moleskine
0.3
Exchange London London London Deutsche Börse London Italy
Price range
IPO price
N/A- admitted to trading on
2 April
N/A- admitted to trading in early April
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59%
37%
4%
London
Deutsche Börse
Others
6
London and the Deutsche Börse dominated activity during the quarter in terms of IPO proceeds
IPO offering value by exchange
PwC Q1 2013 IPO Watch Europe Survey
(1) The London Stock Exchange Group comprises the London and Borsa Italiana stock exchanges.
Stock exchange offering value (€m) Q1 2013 Q1 2012 Q4 2012
London Stock Exchange Group (1) 1,885 619 3,929
London Stock Exchange 1,878 619 3,929
Borsa Italia 7 - -
Deutsche Börse 1,165 - 2,080
Warsaw 58 14 653
Oslo Børs & Oslo Axess 41 - 230
Luxembourg 5 - 462
NYSE Euronext 3 975 17
NASDAQ OMX - 2 46
Wiener Börse - - -
SIX Swiss Exchange - 681 120
BME (Spanish Exchange) - 6 1
Total 3,157 2,297 7,538
The first quarter of 2013 has been encouraging. If current market sentiment persists, London and potentially the rest of Europe appears set for a good year with a large pipeline of businesses sizing up the market.
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30%
30%
9%
7%
7%
17%
London
Warsaw
OMX
Borsa Italiana
Luxembourg
Others
7
IPO volume by exchange
London held 30% of the quarter’s transactions with an average offering
value of €144m. Warsaw also held 30% of the quarter’s transactions.
However, its average transaction value was €6m.
PwC Q1 2013 IPO Watch Europe Survey
(1) The London Stock Exchange Group comprises the London and Borsa Italiana stock exchanges.
Stock exchange Q1 2013 Q1 2012 Q4 2012
London Stock Exchange Group (1) 16 14 26
London Stock Exchange 13 16 26
Borsa Italia 3 - -
Warsaw 13 25 21
NASDAQ OMX 4 3 8
Luxembourg 3 1 3
NYSE Euronext 3 8 2
Deutsche Börse 2 1 7
Oslo Børs & Oslo Axess 2 - 1
Wiener Börse 1 - -
SIX Swiss Exchange - 1 1
BME (Spanish Exchange) - 3 1
Total 44 56 70
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Top five IPOs
8
LEG Immobilien was the only IPO to raise in excess of €1bn and was the
largest in Germany since Telefónica Deutschland in Q4 2012. Four domestic
IPOs in London completed the top five, include two PE backed IPOs.
PwC Q1 2013 IPO Watch Europe Survey
85%
15%
Top 5 IPOs Others
Q1 2013 €m raised Sector Market Segment Country of Origin
LEG Immobilien 1,165 Real Estate Deutsche Börse Prime Germany
esure 703 Insurance London Main UK
Greencoat UK Wind 302 Investment Company London Main UK
Crest Nicholson 261 Construction & Materials London Main UK
Countrywide 237 Real Estate London Main UK
Total 2,668
Q1 2012 €m raised Sector Market Segment Country of Origin
Ziggo 804 Telecommunications Euronext Euronext Netherlands
DKSH 681 Industrial Goods & Services SIX Swiss Main Switzerland
Bluecrest Bluetrend 198 Investment Company London Main Guernsey
Ruspetro 196 Oil & Gas London Main Russia
Alcentra European 97 Investment Company London Main Guernsey
Total 1,976
Q4 2012 €m raised Sector Market Segment Country of Origin
OJSC MegaFon 1,288 Telecommunications London Main Russia
Telefónica Deutschland 1,260 Telecommunications Deutsche Börse Prime Germany
Direct Line 976 Insurance London Main UK
Talanx Aktiengesellschaft 767 Insurance Deutsche Börse Prime Germany
Alior Bank 511 Banks Warsaw Main Poland
Total 4,802
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46%
23%
20%
8%
3%
Real Estate Insurance
Investment Company Construction & Materials
Others
9
IPO value and volume by sector
The real estate sector raised the most value in Q1, buoyed by the IPO of LEG
Immobilien and Countrywide
PwC Q1 2013 IPO Watch Europe Survey
IPO value by sector Sector (no. of IPOs)
Q1 2013
Q1 2012
Q4 2012
Industrial Goods & Services 7 8 12
Technology 5 13 8
Investment Companies 5 5 8
Real Estate 4 6 4
Oil & Gas 3 3 2
Financial Services 3 3 1
Construction & Materials 3 1 1
Media 3 3 1
Pharmaceuticals & Biotech 2 4 6
Telecommunications 2 3 4
Health Care 2 1 2
Food & Beverage 2 - 1
Insurance 1 - 2
Basic Resources 2 - -
Mining - 4 6
Retail - 1 3
Travel & Leisure - - 3
Utilities - - 2
Chemicals - 1 1
Automobiles & Parts - - 1
Banks - - 1
Personal & Household Goods - - 1
Total IPOs 44 56 70
Total value (€m) 3,157 2,297 7,538
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-9.5
-5.0
-4.0
-1.3
3.5
14.8
16.0
25.4
37.0
57.5
0.0
0.0
-5.7
1.6
5.9
16.5
11.1
19.3
0.2
30.5
-20 -10 - 10 20 30 40 50 60 70
Moscow Exchange MICEX (Moscow)
LEG Immobilien (Germany)
West Corp (Nasdaq)
Grupo Sanborns (Mexico)
esure (London)
Infraestructura Energetica Nova SAB (Mexico)
Pinnacle Foods (New York)
Zoetis (New York)
CVR Refining (New York)
Norwegian Cruise Line (Nasdaq)
% change of share price post IPO
1 day
as at 31 March
PwC Q1 2013 IPO Watch Europe Survey 10
The US exchanges hosted five of the top ten global IPOs during the quarter.
Four of these transactions were also the strongest post-IPO performers in
the top 10 during Q1.
2012 Global Top 10 IPOs
Source: Various stock market official websites
Post-IPO performance
Note – excludes investment companies
€329m
€442m
€1,649m
€444m
€379m
€703m
€646m
€325m
€1,165m
€371m
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US overview
11
Activity in the US markets increased from both prior year and prior quarter.
The JOBS Act, which was introduced in mid-2012, continues to fuel activity,
with over 80% of Q1 IPOs initially filing under the Act.
PwC Q1 2013 IPO Watch Europe Survey
Q1 2013 Q1 2012 Q4 2012
Stock exchange IPOs Offering
value (€m) IPOs Offering
value (€m) IPOs Offering
value (€m) NYSE 16 4,143 25 3,338 20 4,218 NASDAQ 18 1,693 19 1,030 14 652 US total 34 5,836 44 4,368 34 4,870 Europe total 44 3,157 56 2,297 70 7,538
Total IPO proceeds raised in the US in Q1 2013 exceeded Q1 of 2012 and the final quarter of 2012 by 34% and 20%, respectively, despite a decrease in the number of IPOs. IPO activity was led by offerings from Zoetis, Pinnacle Foods, CVR Refining, Norwegian Cruise Line and West Corp, which raised a combined €3.2 billion of proceeds, 55% of the quarter’s total. All five transactions featured in the top 10 global IPOs in the quarter. The IPO pipeline remains strong and given the improving US economy, there is an optimistic outlook for the US IPO market for the remainder of 2013.
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Focus on Russia and Turkey
PwC Q1 2013 IPO Watch Europe Survey
Activity on the Borsa Istanbul in Q1 2013 has been particularly slow with only 1 IPO raising €106 million. The IPO of Halk Gayrimenkul Yatırım Ortaklığı A.Ş. (‘GYO’) in February 2013 was the largest for two years and resulted from the sale by Turkiye Halk Bankasi A.Ş. of shares in its real estate unit. In February 2013, the Borsa Istanbul announced changes to Turkish Capital Markets Regulations aimed at improving investor confidence such as introducing more transparency around use of proceeds, related party transactions and sharedealings for significant shareholders. However, some changes may have an adverse impact on market activity, such as the new requirement to underwrite transactions under 20 million TL which may reduce IPO activity for smaller companies and new rules regarding a valuation cap of 20% above the bottom of the target range for the maximum valuation of shares.
In Q1 2013, the Moscow Exchange raised €371m in the biggest IPO on Russia’s bourse since 2007, although it priced at the bottom of its target range. It was the first major test of the government's push to transform the Russian market into an international financial centre and encourage domestic listings. For a number of years, Russian companies have sought to include a stock-market listing abroad, where capital has been more readily accessible.
Q1 2013 Q1 2012 Q4 2012
Stock exchange IPOs Offering
value (€m) IPOs Offering
value (€m) IPOs Offering
value (€m)
Russia 1 371 - - 2 * - *
Turkey 1 106 6 65 4 61
Europe total 44 3,157 56 2,297 70 7,538
* OJSC Megafon and MD Medical Group dual listed in London and Russia in Q4 2012. Total proceeds have been included in London as the primary money raising exchange.
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(1) The London Stock Exchange Group comprises the London and Borsa Italiana stock exchanges. (2) Cumulatively the WSE NewConnect raised €2m in Q1 2013. However, certain transactions raised an amount that rounded down to nil and the figure above is the sum of the rounded values.
IPOs by market
PwC Q1 2013 IPO Watch Europe Survey
Q1 2013 Q1 2012 Q4 2012
Stock exchange IPOs Offering
value (€m) IPOs Offering
value (€m) IPOs Offering
value (€m) TOTAL
London Stock Exchange Group (1) 16 1,885 14 619 26 3,929
Deutsche Börse 2 1,165 1 - 7 2,080
Warsaw 13 58 25 14 21 653
Oslo Børs & Oslo Axess 2 41 - - 1 230
Luxembourg 3 5 1 - 3 462
NYSE Euronext 3 3 8 975 2 17
NASDAQ OMX 4 - 3 2 8 46
Wiener Börse 1 - - - - -
SIX Swiss Exchange - - 1 681 1 120
BME (Spanish Exchange) - - 3 6 1 1
Total 44 3,157 56 2,297 70 7,538 EU-REGULATED
London Main 7 1,835 6 569 13 3,554
Deutsche Börse (Prime and General Standard) 1 1,165 - - 4 2,080
Warsaw (Main) 1 57 4 8 5 632
Oslo Børs 1 26 - - 1 230
NYSE Euronext (Euronext) 1 - 6 972 1 14
Wiener Börse 1 - - - - -
SIX Swiss Exchange - - 1 681 1 120
NASDAQ OMX (Main) - - 1 - 4 38
Luxembourg - - 1 - - -
EU-regulated sub-total 12 3,083 19 2,230 29 6,668 EXCHANGE-REGULATED
London AIM 6 43 8 50 12 328
Oslo Axess 1 15 - - - -
Borsa Italiana AIM 3 7 - - - -
Luxembourg (EuroMTF) 3 5 - - 3 462
NYSE Euronext (Alternext) 2 3 2 3 1 3
Warsaw (NewConnect) (2) 12 1 21 6 16 21
NASDAQ OMX (First North) 4 - 2 2 4 8
Deutsche Börse (Entry Standard) 1 - 1 - 3 -
London SFM - - - - 1 47
BME (Spanish Exchange) (MAB) - - 3 6 1 1
Exchange-regulated sub-total 32 74 37 67 41 870
Europe total 44 3,157 56 2,297 70 7,538
PwC
About IPO Watch Europe
IPO Watch Europe surveys all new primary market equity IPOs on Europe’s principal stock markets and market segments (including exchanges in Austria, Belgium, Denmark, France, Germany, Greece, the Netherlands, Ireland, Italy, Luxembourg, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the UK) on a quarterly basis. Movements between markets on the same exchange and greenshoe offerings are excluded.
This survey was conducted between 1 January and 31 March 2013 and captures new market IPOs based on their transaction date. All market data is sourced from the stock markets themselves and has not been independently verified by PricewaterhouseCoopers LLP.
14 PwC Q1 2013 IPO Watch Europe Survey
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.