Best quarter in two years based on volume: 28 IPOs, including four Unicorns*
Number of global tech IPOs in Q2 2017
Proceeds from global tech IPOs in Q2 2017
Increase in volume from Q2 2016
Increase in proceeds from Q2 2016
After a positive start to the year, Q2 2017 saw an increase in technology IPOs. The number of listings rose 56% quarter over quarter and 100% year over year. Proceeds declined 12% from the previous quarter, but increased 246% year over year.
Although the volume of tech IPOs rose substantially in Q2, average proceeds declined from US$323 in Q1 to US$183 in Q2 owing to smaller offerings including three of the four Unicorns garnering less than US$600 million in aggregate.
Asia reported 19 technology IPOs, the highest for any region in Q2, with total proceeds of US$3.7 billion. China led with 16 IPOs, followed by South Korea with two and Israel with one.
The Semiconductor subsector matched Internet Software & Services – the perennial tech IPO leader – with eight IPOs in Q2 2107. Between them they had 16, more than half the total.
"Looking ahead, we expect the second half of 2017 to continue the positive momentum of the first half. However, investor sentiment could change in a hurry as a result of a significant negative political development or increased volatility in the capital markets.”
“While favorable market factors led to an excellent second quarter for tech IPOs in South Korea, the second half of 2017 may not prove as robust due to several major companies postponing their listings."
“Though Chinese tech IPOs continued their escalating trend in Q2 2017, there have been signs that China regulatory authorities (CSRC) may slowdown the IPO approval process in the second half of 2017. In spite of this, number of Chinese tech IPOs is still expected to reach a historical high in 2017, due to the increase of small to medium sized deals.”
“Six tech IPOs raised $764 million representing a 50% increase in volume from Q1 despite several “down round” IPO valuations. The buy side took advantage of a buoyant US Tech IPO market as it outperformed the broader US IPO market with returns averaging 20%, almost double the 11% return of the broader IPO market.”
*Issue size greater than US$40 million (includes overallotment) and based on trade date.