Global technology IPO Review: Full year and Q4 2017
The global tech IPO market closed 2017 with recovery and hope for resurgent 2018
Number of global tech IPOs in 2017
Proceeds from global tech IPOs in 2017
Growth in volume from 2016
Growth in proceeds from 2016
The global tech IPO market bounced back in 2017 after a lackluster 2016. With 100 technology IPOs in the year, 2017 volume increased 85% year over year. Resurgence in the US market and the consistently strong performance of the Asian markets pulled up the numbers for the year. Year-on-year proceeds surged 168% driven by large IPOs.
The US IPO market picked up pace in 2017 after a dull 2016. Despite a year-over-year increase of 50% in terms of listing and 351% in terms of proceeds, the year remained comparatively flat to 2015. The number of listings in the US have decreased compared to China. However, new measures are being outlined to make it easier for US companies to go public. After a grim 2016, the UK market welcomed two technology IPOs in 2017. Europe, excluding the UK, with US$4,328 million in proceeds, saw its best year. China led the year with 51 IPOs, up 168% year on year. Year 2017 also witnessed a rise in terms of proceeds by 73% and 241% compared to 2015 and 2016.
The Internet Software & Services segment led the year in terms of proceeds and volume. The sector had some of the largest IPOs of the year. However, the sector performance declined by 22% in terms of volume and increased 59% in proceeds compared to 2016. The Electronic and the Semiconductors subsectors had their best years in the last six years in terms of proceeds and volume.
“The tech IPO market rebounded in 2017 after a weak 2016, producing the second- highest number of listings and the third- highest gross proceeds of the last ten years. However, a lack of major unicorn IPOs and a lukewarm after-market performance of many IPOs, created a clear sense of underachievement. Looking ahead, with strong economic indicators across the globe, 2018 promises to build on the momentum of 2017.”
"For the overall IPO market, strong favorable market conditions in 2017 combined with low volatility, market highs in key indices and good returns in equities set the stage for continued IPO issuance and performance in 2018. For Technology IPOs, the market was characterized by a focus on high growth companies with a delineated path to profitability. This resulted in Technology IPOs rewarding investors as the returns handily beat the S&P 500 returns."
"I am pleased to see the number of China Tech IPO has reached a record high in 2017. Although this is primarily attributed to domestic listings, we are seeing more Chinese technology companies exploring overseas capital markets again. With the Hong Kong stock exchange's move to allow dual class of shares and to promote development stage bio-tech IPOs, I anticipate the Hong Kong stock exchange will reach a historical high of technology IPOs in 2018."