Global Technology IPO Review: Q1 2014

Global Technology IPO Review: Q1 2014

Q1 results

After a strong finish in the last quarter of 2013, global technology IPOs above US$40mn kept the momentum alive with total issues of US$6.8bn from 26 IPOs in Q1 2014. Total proceeds grew by 298% in value over Q1 2013 (US$1.7bn) and by 160% in volume (10 deals). Compared to Q4 2013, total proceeds and volume increased by 22% and 4%, respectively. The month of January witnessed 11 IPOs*, raising US$898mn or 13% of the total proceeds, followed by February witnessing flat activity with only two deals raising US$286mn or 4% of total proceeds. The first quarter ended with the highest number of IPOs (13) and the highest proceeds at US$5.6bn (83%) in March. The high value of proceeds in March was fuelled by the Japan Display IPO, which raised US$3.1bn.

From a macroeconomic perspective, rising investor confidence during the months of January and March, as indicated by the downtrend in VIX (Volatility Index), resulted in more IPOs than February, as the Ukraine conflict possibly dampened investor confidence during the month. IPOs from China and Japan were strong contributors during Q1 2014.

IPO summary - Top 10 deals
IPO summary - Top 10 deals

Subsector distribution

In Q1 2014, the Computer Storage & Peripherals subsector raised the highest proceeds (US$3.8bn) representing 55% of total proceeds through the two largest deals in the quarter. Japan Display, Inc. and Hitachi Maxell Ltd., both from Japan, raised US$3.1bn and US$706mn, respectively. In Q4 2013 the sector recorded four deals raising US$527mn and in Q3 2013 it had one deal worth US$162mn.

Internet Software & Services contributed 26% (US$1.8bn) to total Q1 proceeds and 42% (11) to the total deals. The sector had the highest number of deals and proceeds raised in the last two quarters of 2013. The average deal size of the 11 IPOs in the sector was US$161mn, with nine IPOs from US-domiciled companies and one each from Ireland and China.

Sector distribution  


The geographic distribution of technology IPOs in Q1 2014 was spread across the four nations of US, China, Japan and Ireland. The US and China recorded the most activity with 46% (12) and 42% (11) of total deals, respectively.

However, proceeds raised were highly skewed towards Japan, which posted two of the largest IPOs globally in the quarter, raising a total of US$3.7bn or 55% of total proceeds. The US posted US$1.5bn or 23% of total proceeds; followed by China which raised US$987mn or 14% in Q1 2014. Ireland stood alone with one big-ticket, cross-border IPO worth US$500mn contributing 7%.


Raman Chitkara

Global leader
+1 (408) 817 3746

JianBin Gao

China and Hong Kong leader
+86 (21) 2323 3362

Jass Sarai

UK leader
+44 01895 52 2206

Alan Jones

US Technology Deals Partner
+1 (408) 667 0985

Greg Unsworth

Asia-Pacific leader Technology
+65 6236 3738
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Analysis & opinions

Technology IPO market insights
“Momentum from Q4 2013 led to a very strong start for technology IPO’s in 2014. Investors continue to demonstrate a strong appetite for high-growth companies with disruptive technologies, which should lead to continuation of a positive environment for technology IPOs in 2014.”

-- Raman Chitkara, Global Technology Industry Leader, PwC
Technology IPO market insights
"We are pleased that Japan is once again represented in the global technology IPO market. These two impressive IPOs are further indication that the Japanese economy is once again in a growth position and we look forward to continued participation in the quarters ahead."

-- Takahiro Nakazawa, Partner, Head of FRA-IPO Group, PwC Japan
Technology IPO market insights
"The UK Tech sector continues to flourish and in that backdrop it is not surprising that the public markets find themselves with both new entrants and a healthy pipeline. It is particularly pleasing for the UK to have one of its largest ever global listing of a tech company in this quarter."

-- Jass Sarai, Technology Industry Leader, PwC UK
Technology IPO market insights
"The US technology IPO market witnessed the strongest first quarter in more than a decade with rising equity markets and investors favouring high-growth start-ups. The top considerations for technology companies to go public are scale, margin and being a market leader. Investors will continue to reward quality companies with solid business models and potentially high growth with large potential upside to the stock. The current IPO pipeline is strong, with more than two dozen known technology companies. Those with strong fundamentals are likely to be rewarded."

-- Alan Jones, Deals Partner, PwC US
Technology IPO market insights
"We are pleased to see the reopening of the Chinese capital market and anticipate a strong come-back of technology companies given the strong pipeline. Although there were no cases of Chinese companies exiting through capital markets outside China in this quarter, we continue to believe a number of Chinese IPOs will go through the US or Hong Kong and that this has the potential to reach a new high in 2014."

-- Jianbin Gao, Technology Industry Leader, PwC China