Global Technology IPO Review: Q2 2015

Global Technology IPO Review: Q2 2015

Q2 results

The second quarter of 2015 observed 36 technology companies go public across 11 countries, with US$6.2 billion raised. In terms of number of IPOs, this represents a 57% rise over the first quarter of 2015, but the aggregate amount raised remained flat in Q2 resulting in average proceeds declining 35%. The decrease in proceeds was due to a lack of big-ticket IPOs this quarter. The largest technology IPO of the quarter and year to date (YTD) was FitBit Inc, a US wearables company that raised US$841 million. In contrast, in the second quarter of 2014, there were three IPOs with proceeds of US$1 billion or more (IMS Health Holdings Inc,, Markit Ltd). Over the last six years, Q3 2014 recorded the highest proceeds ever of US$24.8 billion, due to the US$21.8 billion Alibaba IPO. The lack of big-ticket IPOs can be attributed to market volatility and the increasing number of start-ups with billion-dollar valuations.

Q2 2015 Global technology IPO trends

Subsector distribution

Consistent with the past few quarters, Internet Software & Services again recorded the most offerings: 16 IPOs and US$2.3 billion in proceeds. It was followed by the Software sector with six IPOs and US$1.8 billion in proceeds. Computers & Peripherals came in third with five IPOs and US$1.12 billion raised.

Compared to last quarter, Internet Software & Services had a 100% increase in the number of IPOs, but the proceeds dipped by 32%. The Software sector also performed well, with a sequential increase of 200% in terms of number of IPOs and 376% in terms of proceeds. Year over year, Computers & Peripherals had a 400% increase in number of IPOs and a 44% increase in proceeds raised. In the Electronics sector, the number of IPOs increased by 100%, but proceeds dipped by 47%.

Q2 2015 IPO subsector distribution  

In Q2 2015, the geographic distribution was across 11 countries. In terms of proceeds the US led with US$2.8 billion and 11 IPOs, followed by Europe with five IPOs and US$1.3 billion of proceeds. China came in at US$1.0 billion with 14 offerings, while Canada and the Rest of the World raised US$265 million (2) and US$859 million (4), respectively. Rest of World countries included Australia, with the second largest IPO of the quarter (MYOB Group Ltd, US$668 million), Israel, Taiwan and Japan with one IPO each.

US technology IPOs bounced back from a slow first quarter with growth of 95% and 175% in terms of total proceeds and number of IPOs, respectively. However, year-over-year results lagged Q1 2014, down 32% in proceeds and 21% in number of IPOs. Europe had five IPOs with proceeds of US$1.3 billion. Compared to the first quarter, total proceeds declined by 58% in Europe, and though the total number of global technology IPOs declined only marginally year over year (36 versus 40), proceeds dropped by 49% due to a lack of billion dollar offerings.

Q2 2015 Geographic distribution of global technology IPOs

Raman Chitkara

Global leader
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Jianbin Gao

China and Hong Kong leader
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Jass Sarai

UK leader
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Pierre Marty

European leader Technology
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