2016年第一季度全球科技企业上市回顾（2016年5月）.pdf

TechnologyIPO ReviewQ1 2016Technology InstituteA quarterly look at global trendsin the technology IPO marketMay 2016Global Technology IPO Review Q1 20161A weak Q1 sets the tone for a lackluster first half of theyear*Raman ChitkaraPartner and Global TechnologyIndustry LeaderPricewaterhouseCoopers LLPWelcome to the first quarter 2016 issue of PwCs Global Technology IPO Review.Asia maintained a steady course as the year began,making it the bright spot in an otherwise weak quarter.Seven of the first quarters ten technology IPOs were in Asia,on par withAsias eight tech IPOs in the fourth quarter and six in the third quarter of 2015.In the first quarter of 2016,China led with threeIPOs.India had two listings on the Bombay Stock Exchangeits first IPOs since the second quarter of 2013.There were also twolistings in Japan.The overall global tech IPO market began 2016 by hitting its lowest point in recent years.The ten IPOs in the first quarter of 2016garnered cumulative proceeds of US$769 million.The last time we reported fewer than ten tech IPOs was in the fourth quarter of2012 when eight IPOs were issued.However,the proceeds were much higher at US$1.3 billion.Fearing lower valuations due to market volatility,technology companies on both sides of the Atlantic shelved their IPO plans.Neither the US nor the UK had a tech IPO.Since 2010,we have not had a quarter without a US domiciled tech IPO until now.Several factors caused the IPO market to plummet from its performance in the fourth quarter of 2015(22 tech IPOs with proceedsof US$10.8 billion):Slowdown in the Chinese economy;Depressed commodity prices,especially with oil at an historical low;Uncertainty over Fed rates;andThe forthcoming referendum in the UK on whether to remain in the EU.As suggested in our 2015 Annual Tech IPO report,the tech IPO market was not likely to continue last years pace in this firstquarter.In fact,the first quarter 2016 proceeds were the lowest of any quarter since the first quarter of 2010,with a sequential dropof 93%and year-on-year decline of 87%.The number of IPOs issued was down 55%quarter on quarter and 57%year on year.The Internet Software&Services subsector has retained the lead in number of IPOs for the last five consecutive quarterssince thefirst quarter of 2015.It reported three of the ten IPOs in this quarter.After no IPOs in the fourth quarter,the Semiconductorssubsector bounced back with two listings.Chinas Tongyu Communication Inc,in the Communications Equipment subsector,wasthe biggest IPO with proceeds worth US$132.1 million.When you add it all upIPO numbers,total proceeds and lack of activity in the US and UKthe first quarter of 2016 goes in thebooks as the worst three months for global tech IPOs since the recession in 2009.Further,there is uncertainty on the future courseof economic and monetary policies in the US and EU.Sincerely,*Issue size greater than US$40 million(includes overallotment)and based on tradedate;See MethodologyGlobal Technology IPO Review Q1 20162Table of contentsExecutive summary3US,UK waiting on the sidelines4Asia stays a steady course5Most IPOs came from mature companies6Q1 2016 global tech IPO summary7Geographic IPO trends Q1 20168United States10China11The rest of Asia12Europe13Stock exchange distribution Q1 201614Subsector distribution Q1 201615Cross-border listings Q1 201617Key financials Q1 201618Q1 2016 Technology IPO listings:Valuation metrics22Top three subsectors in Q1 201624Internet Software&Services24Software28Semiconductors32Methodology36Global Technology IPO Review Q1 20163Executive summaryIn Q1 2016,proceeds from the global tech IPOmarket hit their lowest point since 2009.Variousheadwinds continue to discourage first-timeissuers.These include historically low oil prices,aslowdown in the Chinese economy,uncertaintyover US interest rates and the forthcoming UKreferendum on whether to leave the EUcalledBritain Exit(Brexit).Ten tech IPOs worth US$769million were launched,down 87%in proceeds and57%in number from Q1 2015.The average proceedof US$77 million,a year-over-year decline of 71%,was also the lowest.The market is expected to pickup its pace later this year because many companieswith private funding are waiting on the sidelines forthe recovery.The US and UK markets were conspicuous by theirabsence during the quarter.Since 2010,we havenot seen a single quarter without a tech IPO fromthe US.Contributing to the uncertainty is lack ofclarity over US economic and foreign policies due tothe upcoming presidential election.Figure 1:Q1 global technology IPO trends;sSource:S&P Capital IQ with analysis by PwC.$4,029$2,711$3,038$1,718$6,839$6,063$769$134$129$101$172$263$264$77302130102623100510152025303540Q1 2010Q1 2011Q1 2012Q1 2013Q1 2014Q1 2015Q1 201601,0002,0003,0004,0005,0006,0007,0008,000No.of IPOsUS$millionsTotal proceeds(US$mn)Average proceedsTotal number of IPOs“Despite a relative shutout for US technology IPOs in the first quarter of2016,there is no shortage of companies in the pipeline that are eager to testthe waters and pursue an IPO path to growth.With one technology IPOalready taking place in the second quarter,we are starting to see some lifereturn to the tech IPO market.”Raman ChitkaraGlobal Technology Industry LeaderGlobal Technology IPO Review Q1 20164US,UK waiting on the sidelinesFor the first time since the 2008-09 financialcrisis,neither the US nor the UK issued a tech IPOin the reported quarter.The two markets on eachside of the Atlantic tend to move in tandemapullback in the US significantly impacts the UK.Once before each had been missing from the techIPO marketthe US in Q1 2009 and the UK in Q22013but not together as in Q1 2016.In Q1 2016,15 companies from the US and onefrom Hong Kong either withdrew from the IPOmarket or delayed listing after filing their initialbid documentation.These decisions were drivenby market volatility and down rounds.Historically,sharp volatility has always been anegative for IPOs.Source:S&P Capital IQ with analysis by PwC.Figure 3:UK technology IPOs since 2014;sSource:S&P Capital IQ with analysis by PwC.$500$3,144$75$133$2,358$554$130$4,768$-161111250024681012Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 201601,0002,0003,0004,0005,0006,000No.of IPOsUS$millionsUK total proceeds(US$mn)UK total number of IPOsFigure 2:US technology IPOs since 2014;s$1,562$4,048$524$1,715$1,421$2,765$168$4,042$-121429411260024681012141618Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 201605001,0001,5002,0002,5003,0003,5004,0004,500No.of IPOsUS$millionsUS total proceeds(US$mn)US total number of IPOsGlobal Technology IPO Review Q1 20165Asia stays a steady courseAsia was the saving grace in the quarter.Seven ofthe ten tech IPOs(70%)were from Asia,withChina listing three and India and Japan two each.The Chinese government gave a boost to marketsentiment there by easing monetary policy and byannouncing plans with an undetermined start dateto minimize Beijings administrative interventionin the primary securities market.Asia contributed66%of the total proceeds.The largest and mostpopulous continent proved a better IPO marketcompared to the US or the UK,and maintained itssteady course of recent quartersAsia had eightIPOs in Q4 and six in Q3 of 2015.Source:S&P Capital IQ with analysis by PwC.Figure 4:Q1 2016 Asian technology IPOs;s$267$133$11132235%17%14%30%20%20%0123ChinaIndiaJapan050100150200250300No.of IPOsUS$millionsTotal proceeds(US$mn)Total number of IPOs%of proceeds%of IPOs“Indias thriving technology start-ups and eCommerce sector,which has mainlygrown on the back of venture capital and private equity funding,saw two majorpublic listings this quarter.With strong government focus on start-ups in India andIndias stock market regulator,SEBI,announcing a fresh set of norms to facilitateeasier listing,there is an expectation that more start-ups will list in the futureandwill do well.Sandeep LaddaTechnology&eCommerce Sector Leader,PwC IndiaGlobal Technology IPO Review Q1 20166Most IPOs came from maturecompaniesIn the current volatile market,mostly relativelymature technology companies,with an average13.7 years in operation,issued IPOs.In thisquarter,only two companies of the ten were lessthan five years old.This indicates a shift awayfrom the trend in which younger start-upcompanies with good private funding,but no netincome yet,were listed,providing an early exitroute to private equity(PE)investors and venturecapitalists(VCs).In recent quarters,revenue and revenue growthhave been the basis for valuations,with a majorityof IPO-bound technology companies reportingnegative net income.But in Q1 only two listedcompanies had reported net losses,suggesting thatnet income might be returning,even replacingrevenue and revenue growth,as the basis forvaluation.Investors have shown restraint andcompanies with net losses are postponing theirIPOs for a better time.Source:S&P Capital IQ with analysis by PwC.Figure 6:Q1 2016 tech IPOs Number of years in operation;sSource:S&P Capital IQ with analysis by PwC.48238648201064LeoVegas ABCatenaMedia plcQuick HealTechnologiesLimitedEoptolinkTechnologyInc LtdAkatsuki IncUMCElectronicsCo.,Ltd.TongyuCommun IncChangshaJingjia MicroCo LtdInfibeamInc LtdOneviewHealthcarePLC010203040506070No.of years inoperationNo.of years in operationFigure 5:Q1 2016 tech IPOs Revenue,net income;s$94$17$43$95$39$250$205$37$443$-$9$8$15$3$14$38$14$(1)-11LeoVegas ABCatenaMedia plcQuick HealTechnologiesLimitedEoptolinkTechnologyInc LtdAkatsuki IncUMCElectronicsCo LtdTongyuCommun IncChangshaJingjia MicroCo LtdInfibeamInc LtdOneviewHealthcarePLC-50050100150200250300US$millionsRevenueNet incomeGlobal Technology IPO Review Q1 20167Q1 2016 global tech IPO summarySequentially,the tech IPO market took a nosedivefrom 22 IPOs worth US$10.8 billion in Q4 2015 to10 IPOs worth US$769 million in Q1 2016a 93%decline in proceeds and a 55%decline in number ofIPOs.Total Q1 proceeds for the technology sectorwere weaker than any of the previous five quarters.The second worst quarter in the previous five wasQ3 2015.It had one more IPO11 totalthan Q12016,but the proceeds were 533%greater atUS$4.1 billion.Several macro-economic factors are acting inconcert to cause the overall sluggish start to 2016.In Europe,the refugee crisis and the forthcomingEU referendum in the UK are fueling doubts aboutthe stability of the Eurozone.In the US,with thepresidential election just months away,there isuncertainty about economic and foreign policiesbeyond 2016.There is also uncertainty overmonetary policy in many markets.The FederalReserve is expected to increase interest rates thisyear.The European Central Bank,on the otherhand,has kept interest rates negative.And there isa growing concern that the negative rates may leadto renewed crisis in the European banking system.Technology offerings,usually one of the mainstaysof US IPO activity,were absent in part becauseUnicorns(companies with US$1 billion or greatervaluations as of their most recent round of privatefunding)are waiting for better timing andimproved sentiment for their high valuations.Figure 7:Q1 2015-Q1 2016 global tech IPO trends;sSource:S&P Capital IQ with analysis by PwC.$6,063$6,162$4,093$10,785$7692336112210071421283542Q1 2015Q2 2015Q3 2015Q4 2015Q1 201602,0004,0006,0008,00010,00012,000No.of IPOsUS$millionsTotal proceeds(US$mn)Number of IPOsGlobal Technology IPO Review Q1 20168Geographic IPO trends Q1 2016As noted,the geographic distribution of tech IPOactivity shifted from its traditional markets in theUS,UK and Germany to Asia and smaller countriesin Europe.China led with three IPOs,raisingUS$267 million.The biggest IPOTongyuCommunication Inc,with proceeds of US$132.1millionwas listed on Shenzhen Stock Exchange.India had two IPOs,listed on the Bombay StockExchange.Japan issued two IPOs and Malta,Sweden and Ireland had one IPO each.The US had no tech IPOs.Lower oil prices,USmonetary policies,negative Chinese macro-economic numbers and other factors are impactingthe market.Some US companies that were headedtoward the IPO market have taken a wait-and-seepolicy due to lower valuations in recent months.But going slow might not remain an option forsome technology companies that need cash becausethey are also seeing reduced VC and PE funding.Figure 8:Geographic distribution of technology IPOs Q1 2016;sSource:S&P Capital IQ with analysis by PwC.$267$133$111$101$111$463221110.01.02.03.04.0ChinaIndiaJapanMaltaSwedenIreland050100150200250300No.of IPOsUS$millionsTotal proceeds(US$mn)Number of IPOsFigure 9:Regional analysis of IPO proceeds;sSource:S&P Capital IQ with analysis by PwC.$1,420.85$3,014.00$1,630.000$3,030.00$1,271.00$1,861.000$103.20$1,626.28$2,298.000$103.20$1,626.28$2,298.000$4,041.66$5,074.98$1,206.47$462.00$-$258.45$510.930North AmericaEuropeAsiaRoW01,0002,0003,0004,0005,0006,000US$millionsQ1 2015Q2 2015Q3 2015Q3 20152Q4 2015Q1 2016Global Technology IPO Review Q1 20169The UK,which had many tech IPOs in the last fewquarters,also drew a blank.Volume and value ofIPOs on the London Stock Exchange(LSE)isexpected to continue to fall as doubts rise overinterest rates in the UK.Elections in the US andFrance,and the possibility of the UK leaving theEU,are also dampening the market.The New York Stock Exchange,NASDAQ and theLSE did not list a single tech IPO in the period.Asialed the way with seven IPOs with proceeds ofUS$511 million.Europe had three IPOs fromSweden,Malta and Ireland,with proceeds ofUS$258 million.Source:S&P Capital IQ with analysis by PwC.Figure 10:Regional analysis of number of IPOs;s45140135180136067810370North AmericaEuropeAsiaRoW05101520No.of IPOsQ1 2015Q2 2015Q3 2015Q4 2015Q1 2016“The UK IPO market has experienced momentum in recent quarters,but is clearly paused for now.Many companies continueto evaluate their strategic options,including an IPO,but the market is currently challenging due to various uncertainties.Once these uncertainties are clarified,we expect positive sentiment to return and the pipeline to improve.”Jass SaraiTechnology Industry Leader,PwC UKGlobal Technology IPO Review Q1 201610United StatesThe biggest setback for Q1 2016 was the fact thatUS tech companies avoided the IPO market.Itreminded investors of the collapse of LehmanBrothers in 2008 which was followed by no techIPOs in North America in Q1 2009.Compared tothe previous quarter,Q1 2016 was dismal.In Q42015,the US reported six IPOs with US$4.0billion in proceeds.Through most of the first quarter,the VolatilityIndex(VIX)remained above 20 and hoveredaround 27-28.The fear index reflected the volatilesentiment prevailing in the US market.The VIXhit an intra-day high of 30.90 on February 11.Atsome point this year,the Federal Reserve is widelyexpected to raise interest rates for the first time innine years.There is no precedence for exiting azero-rate environment,and so it is not clear howthe Fed move,when it happens,will impactvolatility in equity markets.An early warning of things to come were thenumber of IPOs that priced below the ra