IPO Watch Europe Q3 2017 - PwCIPO Watch Europe Q3 2017 | 5 3.3 5.4 3.0 14.8 11.4 22.3 6.6 9.2 16.4...
Transcript of IPO Watch Europe Q3 2017 - PwCIPO Watch Europe Q3 2017 | 5 3.3 5.4 3.0 14.8 11.4 22.3 6.6 9.2 16.4...
IPO WatchEurope Q3 2017
www.pwc.co.uk/ipowatch
€8.2bnraised in Q3 2017
(Q3 2016: €3.8bn, 116% increase)
74 IPOsin Q3 2017 across Europe
(Q3 2016: 52 IPOs, 42% increase)
€28.3bnIPO Proceeds raised in YTD 2017
(YTD 2016:€18.2bn, 55% increase)
2 | IPO Watch Europe Q3 2017
Source: Dealogic and Stock Exchanges
3IPO Watch Europe Q3 2017 |
European IPO trends 4
Market volatility 6
Pricing of top 5 IPOs 7
European PE trends 7
The sector story 8
London focus
Overview 9
Relative performance of London IPOs 10
Global perspective 11
Appendix 12
Contacts 16
Contents
Outlook for 2017
“We have seen European IPOs gathering momentum this year with moneyraised to date already above the €27.9bn raised in the whole of 2016. Theyear is set to finish on a high note with a number of high profile large IPOsset to launch in the coming weeks. However, with a number of companiesundertaking dual-track processes, inevitably some of these companies mayopt for a private sale process given the attractive valuations on offer.”
Mark HughesPartner, UK Capital Markets Leader at PwC
4 | IPO Watch Europe Q3 2017
European IPO trendsThe London Stock Exchange is the most active in terms ofvolume and the largest contributor to European IPO values,representing 33% of all European IPO proceeds raised
Note: Excludes greenshoe.
Figure 1: Top 3 stock exchanges in Europe in Q3 2017 (by offering value)
Source: Dealogic and Stock Exchanges
5IPO Watch Europe Q3 2017 |
3.3 5.4 3.0 14.8 11.4 22.3 6.6 9.2 16.4 14.7 4.6 21.7 3.5 10.9 3.8 9.6 4.5 15.6 8.2
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European IPO trendsQ3 2017 European IPO values and volumes have increased onQ3 2016, when activity was dampened following the UK’s voteto leave the EU
Figure 2: European IPO activity since 2007 (YTD and full year)*
Figure 3: Quarterly European IPO activity since 2013
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**Excludes greenshoe.Note: Excludes IPOs on Borsa Istanbul, Zagreb Stock Exchange and Bucharest Stock Exchange pre 2011
2013 2014 2015 2017
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2016
Source: Dealogic and Stock Exchanges
6 | IPO Watch Europe Q3 2017
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DAX 30
FTSE 100
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Market volatilityMarket volatility remains at low levels, while Europeanindices remain stable
Figure 4: Volatility tracked against European IPO values
Source: Thomson Reuters as at 29 September 2017
Figure 5: Historical performance of major European market indices since January 2016
EUreferendumin the UK
USpresidential
election
Triggeringof Article 50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
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2016 2017
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€1bn+ IPOof DongEnergy
€1bn+IPOs ofinnogy SEandConvaTec
€1bn+ IPOsof Allied IrishBank plc andALD SA
€1bn+ IPOof GalenicaSante AG
UK Generalelection
€1bn+ IPO ofLandis & GyrHolding AG
Falling oil prices,Chinese economy
slowdown and threat ofimpending bear market
FrenchPresidential
election
7IPO Watch Europe Q3 2017 |
Pricing of top 5 IPOsThe Play Communications IPO represents the largestPolish IPO by a private company and is the largestEuropean telecoms IPO since 2012
Figure 6: Top 5 European IPOs in Q3 2017
Landis & GyrHolding AG
PlayCommunications
SA
SherborneInvestors
(Guernsey) CLtd
PJSC PolyusRovio
EntertainmentLtd
ExchangeSIX SwissExchange
Warsaw London London Nasdaq Nordic
IPO date 21 July 27 July 12 July 5 July 29 September
Money raised (€m) 2,080 1,041 797 484 425
Price rangeSFR70.00 –SFR82.00
PLN34.00 -PLN44.00
£1.00 $33.25 - $35.30 €10.25 - €11.50
Offer price SFR78.00 PLN36.00 £1.00 $33.25 €11.50
Figure 7: Quarterly value and volume of European PE backed IPOs since 2013
European PE trendsThe volume and value of PE backed IPOs remains subduedwith a number of deals opting for private sale processes
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1.13.7
1.25.8 5.2 13.7 1.8 1.8 9.5 5.5 1.8 8.1 1.6 6.4 2.7 3.0
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2013 2014 2015 2016 2017
Source: Dealogic and Stock Exchanges
8 | IPO Watch Europe Q3 2017
The sector storyIndustrials and financials represent the largest sectors in thequarter. The industrials sector has been supported by themega-IPO* of Landis & Gyr, while the financials sector hasbeen supported by a number of real estate IPOs in London
*Mega-IPOs are those raising in excess of €1bn**Excludes greenshoe
Figure 8: European IPO values by sector**
Industrials
12 IPOs raised€2.95bn**
Largest IPO:Landis & Gyr Holding AG
€2.1bn
Telecommunications
1 IPO raised€1.0bn**
Largest IPO:Play Communications
SA€1.0bn
Financials
32 IPOs raised€2.99bn**
Largest IPO:Sherborne Investors
(Guernsey) C Ltd€797m
By offering value (€m) Q1 2017 Q2 2017 Q3 2017 YTD 2017 YTD 2016 Variance vs YTD2016
Financials 1,072 5,217 2,985 9,274 6,940 2,334
Industrials 1,192 3,244 2,951 7,387 2,959 4,428
Telecommunications - 11 1,041 1,052 10 1,042
Technology 1,465 1,246 541 3,252 170 3,082
Consumer Services 4 3,798 397 4,199 3,372 827
Consumer Goods 122 1,435 206 1,763 1,581 182
Health Care 514 404 52 970 435 535
Oil & Gas 61 227 3 291 128 163
Basic Materials 128 8 1 137 33 104
Utilities - - - - 2,613 (2,613)
Total 4,558 15,590 8,177 28,325 18,241 10,084
Source: Dealogic and Stock Exchanges
9IPO Watch Europe Q3 2017 |
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London focus – overviewContinuing the trend experienced in H1 2017, the financialssector continues to dominate London IPOs, representing 60%of London IPO values
Figure 9: London IPO trends (by offering value)* Figure 10: London IPO trends (by volume)
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Figure 11: Top 5 London IPOs in Q3 2017
*Excludes greenshoe
Note: Ranking in £ sterling may be different from ranking in Euros due to exchange rate
Figure 12: London IPO value by sector*
£6.3bn£14.5bn £7.3bn
YTD17
YTD14
YTD15
£3.0bn
YTD16
2014 2015 2016 2017
71109 64
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YTD14
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2014 2015 2016 2017
Issuer Value (£m)* Sector Market PE backed
Sherborne Investors (Guernsey) C Ltd 700 Financials Main No
PJSC Polyus 551 Industrials Main No
Triple Point Social Housing REIT plc 200 Financials Main No
Strix Group plc 190 Industrials AIM Yes
Residential Secure Income plc 180 Financials Main No
By offering value (£m) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Variance vs.Q3 2016
Financials 40 618 784 653 1,504 1,464
Industrials - 352 180 580 788 -
Consumer Services 188 - - 175 172 (16)
Health Care 2 1,524 121 5 15 13
Technology 9 23 611 269 9 -
Oil & Gas - 3 52 243 3 -
Basic Materials - - 7 7 1 -
Consumer Goods 27 23 53 37 - (27)
Total value 266 2,543 1,808 1,969 2,492 2,226
Source: Dealogic and Stock Exchanges
10 | IPO Watch Europe Q3 2017
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Strix Group PLC
GYG PLC
Angling Direct PLC
Fandango Holdings PLC
Baskerville Capital PLC
Polyus PAO
Xpediator PLC
Arena Events Group PLC
Tatton Asset Management PLC
Wilmcote Holdings PLC
QUIZ PLC
Stapleton Capital Plc
Appscatter Group PLC
Chesterfield Resources PLC
Sherborne Investors (Guernsey) C Ltd
Triple Point Social Housing REIT PLC
Gabelli Merger Plus+ Trust PLC
Warehouse REIT PLC
Supermarket Income REIT PLC
Destiny Pharma PLC
Altus Strategies PLC
Residential Secure Income PLC
Myanmar Strategic Holdings Ltd
Nexus Infrastructure PLC
GetBusy PLC
Verditek PLC
Rockpool Acquisitions PLC
London focus – relative performance ofLondon IPOs78% of London IPOs have out-performed the FTSE all shareindex
Figure 13: Share price performance of London IPOs relative to the FTSE all share index, from IPO to 29 September 2017 (%)
Note: Relative performance based on the FTSE All Share Index for Main Market listed companies and FTSE AIM All Share index for AIM quoted companiesSource: Thomson Reuters as of 29 September 2017
6companies haveunderperformed
the index
21companies haveoutperformed
the index
Main Market
AIM
“London bounced back from the disappointing performance in Q3 2016 which was affected by theuncertainty and volatility arising from the UK’s EU referendum outcome. Q3 2017 was London’smost active third quarter by volume since 2011 when 29 IPOs raised €1.1bn. Looking ahead, thepipeline looks promising for London IPOs, which includes a number of international companies.If favourable conditions continue, Q4 should deliver a strong end to the year.”
Lucy TarletonDirector, UK Capital Markets Group at PwC
11IPO Watch Europe Q3 2017 |
Global perspectiveGlobal IPO values are down on Q3 2016, as a result of adecrease in Asia Pacific IPOs
Figure 14: Global IPO activity*
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* Excludes greenshoeSource: Dealogic
Figure 15: Top 10 global IPOs YTD 2017
2014 2015 2016 2017
Date Issuer Value (€m)* Exchange Sector
Jun-17 Allied Irish Banks PLC 2,986 Irish Stock Exchange Finance
May-17 Netmarble Games Corp 2,176 Korea Computer & Electronics
Jul-17 Landis & Gyr Holding AG 2,080 SIX Swiss Industrials
Jun-17 Altice USA Inc 1,721 NYSE Telecommunications
Apr-17 Galenica Sante AG 1,544 SIX Swiss Healthcare
Jul-17 Netlink NBN Trust 1,489 Singapore Telecommunications
Feb-17 Invitation Homes Inc 1,439 NYSE Finance
Sep-17 ZhongAn Online P & C Insurance Co Ltd 1,273 Hong Kong Insurance
Jul-17 Atacadao SA 1,217 BM&FBOVESPA Consumer Services
May-17 Kinder Morgan Canada Ltd 1,159 Toronto Oil & Gas
12IPO Watch Europe Q3 2017 |
*Excludes greenshoe
Appendix – Exchange activity by value
Appendix 1: IPO offering value by stock exchange*
Stock exchange offering value (€m) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
London Stock Exchange Group 1,086 2,985 2,254 2,613 3,557
London Stock Exchange 311 2,882 2,115 2,223 2,672
Borsa Italiana 775 103 139 390 885
SIX Swiss Exchange - 100 - 1,544 2,280
Warsaw 4 147 1 542 1,227
Nasdaq Nordic 2,196 1,418 406 1,578 532
Nasdaq Helsinki - 427 30 198 425
Nasdaq Stockholm 83 953 376 1,365 107
Nasdaq Copenhagen 2,113 - - 12 -
Nasdaq Iceland - 38 - - -
Nasdaq Tallinn - - - - -
Nasdaq Riga - - - - -
Nasdaq Vilnius - - - 3 -
Irish Stock Exchange - - - 2,986 270
Deutsche Börse 72 4,645 235 1,049 204
Budapest - 9 - - 73
Oslo Børs & Oslo Axess 12 185 7 821 29
Euronext 406 60 183 2,437 5
Euronext Paris 78 60 80 1,258 5
Euronext Amsterdam 328 - 103 575 -
Euronext Brussels - - - 604 -
Euronext Lisbon - - - - -
BME (Spanish Exchange) 8 16 1,459 1,563 -
Borsa Istanbul - - 13 265 -
Bucharest Stock Exchange - 51 - 192 -
Luxembourg 48 - - - -
Wiener Börse - - - - -
Sofia - 31 - - -
Total 3,832 9,647 4,558 15,590 8,177
Source: Dealogic and Stock Exchanges
13 | IPO Watch Europe Q3 2017
Appendix – Exchange activity by volume
Appendix 2: IPO volume by stock exchange
Stock exchange Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
London Stock Exchange Group 14 21 23 30 36
London Stock Exchange 9 19 20 24 27
Borsa Italiana 5 2 3 6 9
Nasdaq Nordic 9 24 13 41 11
Nasdaq Copenhagen 1 - - 2 -
Nasdaq Stockholm 7 20 12 34 9
Nasdaq Helsinki - 3 1 4 1
Nasdaq Iceland - 1 - - 1
Nasdaq Tallinn - - - - -
Nasdaq Riga 1 - - - -
Nasdaq Vilnius - - - 1 -
Warsaw 5 7 2 6 9
BME (Spanish Exchange) 10 4 6 4 8
Deutsche Börse 4 2 2 3 3
Euronext 5 4 5 8 2
Euronext Amsterdam 1 - 1 1 1
Euronext Paris 4 4 4 5 1
Euronext Brussels - - - 2 -
Euronext Lisbon - - - - -
SIX Swiss Exchange - 1 - 2 2
Oslo Børs & Oslo Axess 1 1 1 4 1
Irish Stock Exchange - - - 1 1
Budapest - 1 - - 1
Borsa Istanbul - - 1 2 -
Bucharest Stock Exchange 1 1 - 2 -
Luxembourg 2 - - - -
Wiener Börse 1 - - -
Sofia - 2 - - -
Total 52 68 53 103 74
Source: Dealogic and Stock Exchanges
14 | IPO Watch Europe Q3 2017
Appendix – IPOs by market
* Excludes greenshoe
Appendix 3: European IPOs by market
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Stock exchange IPOs Value (€m)* IPOs Value (€m)* IPOs Value (€m)* IPOs Value (€m)* IPOs Value (€m)*
EU-REGULATED
SIX Swiss Exchange - - 1 100 - - 2 1,544 2 2,280
London Main 3 249 9 2,652 15 1,998 13 1,543 12 1,915
Warsaw (Main) - - 6 147 1 1 3 518 2 1,215
Nasdaq Nordic (Main) 3 2,167 9 1,234 - - 3 51 1 425
Borsa Italiana (Main) 1 759 - - 1 130 2 282 1 312
Irish Stock Exchange (Main) - - - - - - 1 2,986 1 270
Deutsche Börse (Prime and General Standard) 2 72 2 4,645 2 235 3 1,049 2 201
Budapest - - 1 9 - - - - 1 73
Oslo Børs - - 1 185 - - 4 821 1 29
Euronext 2 368 2 48 4 183 7 2,426 2 5
BME (Spanish Exchange) (Main) - - - - 2 1,459 2 1,558 - -
Bucharest - - 1 51 - - 2 192 - -
Wiener Börse - - - - - - - - - -
Sofia - - 2 31 - - - - - -
EU-regulated sub-total 11 3,615 34 9,102 25 4,006 42 12,970 25 6,725
EXCHANGE-REGULATED
London AIM 6 62 10 230 5 117 11 680 15 757
Borsa Italiana (AIM) 4 16 2 103 2 9 4 108 8 573
Nasdaq Nordic (First North) 6 29 15 184 13 406 38 1,527 10 107
Warsaw (NewConnect) 5 4 1 - 1 - 3 24 7 12
Deutsche Börse (Scale) 2 - - - - - - - 1 3
BME (Spanish Exchange) (MAB) 10 8 4 16 4 - 2 5 8 -
Borsa Istanbul - - - - 1 13 2 265 - -
Euronext (Alternext) 3 38 2 12 1 - 1 11 - -
Luxembourg (MTF) 2 48 - - - - - - - -
Oslo Axess 1 12 - - 1 7 - - - -
Bucharest (AeRO) 1 - - - - - - - - -
Wiener Börsen (MTF) 1 - - - - - - - - -
Exchange-regulated sub-total 41 217 34 545 28 552 61 2,620 49 1,452
Europe total 52 3,832 68 9,647 53 4,558 103 15,590 74 8,177
Source: Dealogic and Stock Exchanges
15IPO Watch Europe Q3 2017 |
IPO Watch Europe surveys all new primary market equity IPOs on Europe’s principalstock markets and market segments (including exchanges in Austria, Belgium,Croatia, Denmark, France, Germany, Greece, the Netherlands, Ireland, Italy,Luxembourg, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland,Turkey and the UK) on a quarterly basis. Movements between markets on the sameexchange are excluded.
This survey was conducted between 1 July and 30 September 2017 and capturesintroductions as well as IPOs based on their first trading date. All market data issourced from Dealogic and the stock markets themselves and has not beenindependently verified by PricewaterhouseCoopers LLP.
About IPO Watch Europe
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not actupon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) isgiven as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopersLLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyoneelse acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
© 2017 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP which is a member firm ofPricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
Contacts
Katherine Howbrook (Press office)+44 (0) 20 7212 [email protected]
Mark Hughes+44 (0) 20 7804 [email protected]
Lucy Tarleton+44 (0) 20 7212 [email protected]