There were 13 global technology IPOs* in Q3 with total proceeds of $1.3bn, an 18% increase in volume and 33% increase in dollars over Q3 2012. Growth in the first half of 2013 was fuelled by investors’ increased appetite for risk supported by a rising equity market.
The Internet Software & Services subsector contributed 46% of the total deals and 43% of the total proceeds this quarter. It witnessed six IPOs raising US$572mn this quarter compared to two IPOs raising US$193mn a year ago, a significant increase, and was only down slightly from Q2 2013 with five IPOs raising US$606mn.
After leading technology IPOs for the last two quarters, the Software subsector declined to three IPOs from six in Q2 2013. This quarter was also a decline from Q3 2012 when software recorded five IPOs. Total proceeds declined by 42% to US$411mn as compared to US$708mn last quarter and US$360mn in Q3 2012.
After the long absence of Chinese company IPOs in Q1 and Q2 2013 due to restrictions imposed by the CSRC, two Chinese companies, Montage Technology Group Ltd. and Sinosoft Technology Group Ltd., listed its IPOs on NASDAQ and Hong Kong exchanges respectively this quarter. This is a decline of 50% in volume compared to Q3 2012 when four Chinese companies went public.
In the third quarter, the number (9) and value (US$1.1bn) of US IPOs increased year over year by 29% and 41% respectively, but decreased 25% and 49% respectively compared to Q2 2013. In addition, the US contributed 83% to the US $1.3bn total proceeds raised in Q3. Continuation of the Federal stimulus has ensured continued robust market growth for US equities and has helped to maintain a healthy IPO market.
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