Full-year 2014 results
Following a lackluster performance during 2011 through 2013, the global technology IPO market posted its best year of the decade in 2014 with the highest number of offerings (118) and highest proceeds (US$51.2bn).
Year over year, total proceeds jumped by 347% and the number of IPOs grew by 84%. During the period 2010-2014, total proceeds of US$119.6bn were raised from 447 deals -- 2014 alone contributed 43% of the proceeds and 26% of the deals. Strong capital markets, relatively low volatility during most of 2014, the reopening of the Chinese exchanges, and improvements in Europe all contributed to the strong performance.
In 2014 we also saw much broader global participation with 19 countries across 16 exchanges – this was also the highest for the period 2010-2014. Despite geopolitical incidents creating global market tensions, the technology IPO market showed resilience.
The technology sector reported 34 IPOs in the fourth quarter. This was higher than all the quarters under study except for Q2 2014, which reported 40 IPOs. Total proceeds raised through these IPOs were US$7.5bn, which was lower than the last two quarters. The significant drop in amount raised (70%) compared to the last quarter was due to Alibaba‘s mega IPO in Q3 2014.
Year over year, the amount raised increased by 33% and the number of IPOs increased 36%. This quarter witnessed two billion-dollar IPOs - Rocket Internet AG (US$1.76bn) and Samsung SDS Co Ltd (US$1.06bn). The third biggest tech IPO this quarter was Lending Club Corporation with US$870mn.
It is expected the strength in Q4 will carry over to 2015.
Internet Software & Services led the subsectors in 2014 with 47 deals raising US$33.5bn. It was the most active sector during the year, contributing 65% of the total proceeds and 40% of the total deals as compared to 43% of the proceeds and 38% of the deals in 2013. The sector was primarily boosted by Alibaba’s IPO which raised the highest proceeds in history. Excluding Alibaba, the subsector was still the highest in the group with proceeds of US$12bn.
In line with historical trends, Internet Software & Services led the way with 51% of the total proceeds and 29% of the total number of IPOs. Most of the big-ticket IPOs were from this sector and many were in the top 10.
Full-year 2014 results
Technology IPOs witnessed the broadest geographic participation of the last five years. Nineteen countries were represented in 2014 compared to 15 in 2010, 11 in 2011, just 6 in 2012, and 16 in 2013.
China’s re-emergence marked the biggest change in year-over-year activity. With 45 deals and proceeds worth US$29bn in 2014, China surpassed its 2013 figures fourfold (463%) in the number of issues (8) and by 28 times in proceeds (US$1bn). Until 2013, the best year for China in terms of proceeds and number of technology IPOs was 2010. The US was in second position in 2014 with 37 deals and proceeds worth US$7.9bn. Other notable participants were Japan and Israel with four IPOs each, the UK with seven listings, and South Korea with three IPOs in 2014.
China led the way with 11 IPOs. China was followed by the US with nine technology IPOs. But in terms of proceeds, US companies raised more than their Chinese counterparts, US$1.7bn versus US$1.4bn, and due to the smaller number of offerings, US companies received higher average proceeds.
European participation included Germany, with the largest tech IPO of the quarter - US$1.7bn, the Netherlands - US$188mn, also in the top 10 for the quarter, UK - US$133mn, and Norway - US$107mn.
+1 (408) 817 3746
China and Hong Kong leader
+86 (21) 2323 3362
+44 01895 52 2206
US Technology Deals Partner
+1 (408) 667 0985
European leader Technology
+49 211 981 5848