Lack of Unicorns and US tech IPOs dampen Q3 results*
Number of global tech IPOs in Q3 2017
Proceeds from global tech IPOs in Q3 2017
Asia portion of Q3 global tech offerings
Number of US tech IPOs in Q3
With 20 tech IPOs and proceeds of US$5.2 billion, the third quarter saw a 31% drop in volume and 15% decrease in proceeds from the prior quarter but an equal number of offerings and only marginally lower proceeds year over year (-3%).
Tech IPOs picked up steam in the latter part of the quarter which suggests a stronger year-end. There were 13 tech IPOs in September, of which 8 were listed in the second half of the month.
Ongoing demand for tech IPOs in China, continuing innovation in South Korea, and contributions from Japan and India led to stronger Asia numbers. A total of 16 IPOs garnered US$1.7 billion.
The European IPO market has shown positive momentum in 2017. The region was a no-show in Q1 but picked up steam in Q2. The third quarter saw the quarter’s biggest IPO with Landis+Gyr Group AG raising US$2.4 billion.
"Continued strength in global capital markets and a robust pipeline of quality companies suggests a strong finish to the year.”
“Consistent with our expectation, China tech IPOs slowed slightly in Q3 2017 after several quarters' escalation. We anticipate that the number of Chinese domestic TMT IPOs will remain stable at a relatively high level over the fourth quarter of this year. Further, Hong Kong IPOs are becoming attractive again for Chinese tech companies in view of recent strong market performance.”
"The tech IPO market in Europe is slowly brightening compared to its initial weakness earlier in the year. In Q2, we already saw the IPO of Delivery Hero in Germany with almost $1 billion raised in addition to X-FAB Silicon Foundries in Belgium and Alfa Financial Software in the UK which both reached around $300 million. In Q3, Switzerland claimed the largest single IPO, globally, to the tune of $2.4 billion with Landis+Gyr, while Rovio Entertainment in Finland raised $500 million. Looking ahead, with European elections behind us and a healthy pipeline of new entrants, I expect the renewed momentum to continue through this year and into 2018."
"Although we saw a poor start to tech IPO activity in Korea in Q1, it picked up in Q2 with companies in the Internet Software & Services and Semiconductor sectors. While we expect to see this continued momentum for the remainder of the year, a healthy pipeline, especially with artificial intelligence, robotics and electric vehicles, is expected to fuel tech IPOs through next year."
“Although activity in the Q3 2017 US Technology IPO market was relatively modest with only a single company raising $252 million, the pipeline for the remainder of the year remains robust with several offerings close to pricing and a strong pipeline of potential IPOs.”
*Issue size greater than US$40 million (includes overallotment) and based on trade date.