www.pwc.com                           www.pwc.co.uk                           IPO Watch Europe                           2...
Contents    Introduction	2    IPOs by quarter	                           5    Top IPOs	                                  6...
Outlook for 2013                            “With equity markets strengthening and volatility                            i...
Recovery in activity in the  Introduction                                                                                 ...
Further offer activityunderpinned by financial                         Global perspective summaryservices                 ...
4  IPO Watch Europe 2012
However, as market conditionsIPOs by quarter                                                                              ...
Top IPOs   Figure 3: The top IPOs in Europe and globally   Ten largest IPOs in Europe in 2012   Company                   ...
Eight of the top 10 IPOs                        Global top 10 dominatedin Europe feature in the                        by ...
IPOs by exchange   Figure 4: IPOs by exchange   Stock exchange                                      Company IPOs 2012     ...
Majority of European exchanges               The SIX Swiss Exchange raised                Exchange-regulated marketsshowed...
IPOs by sector   Figure 5: IPOs by sector   IPOs by sector – by volume                                           IPOs by s...
The telecommunications sector was          The banking sector experienced a            Of the 13 natural resource IPOs, 12...
Figure 6: IPO price performance – Top 10 European and global IPOs 2012  IPO                                               ...
2012 top European IPOs:                                Demand for DKSH shares, the first                        The Direct...
IPO indicators    Figure 9: VIX volatility index compared with IPO proceeds                                               ...
IPO Watch Europe 2012  15 
Further offers  Proceeds raised from further offers (FO)                     As shown in figure 11, London led the        ...
Figure 12: Top 5 European Further Offers 2012Company name                       Offering value (€bn)   Exchange           ...
Cross-border IPOs  Cross-border IPOs are deemed transactions where 50% or more of the proceeds are raised on a non-domesti...
Figure 16: Cross-border flows between key regions in 2012                                                                 ...
20  IPO Watch Europe 2012
Global perspectiveThe fall-out from the financial crisis is       •	 Europe was one of the worst                          ...
Focus on Greater China  In 2012, the number of IPOs on Greater                                                Kennedy Liu,...
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
Etude PwC sur les introductions en bourse en Europe (2013)
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Etude PwC sur les introductions en bourse en Europe (2013)

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Le bilan annuel de l’étude PwC « IPO Watch », ainsi que sur les prévisions concernant les introductions en bourse en Europe pour 2013.

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Etude PwC sur les introductions en bourse en Europe (2013)

  1. 1. www.pwc.com www.pwc.co.uk IPO Watch Europe 2012IPO Watch Europe surveysstock market listingsin Europe and providesa comparison with theworld’s major markets
  2. 2. Contents Introduction 2 IPOs by quarter 5 Top IPOs 6 IPOs by exchange 8 IPOs by sector 10 IPO performance 12 IPO indicators 14 Further offers 16 Cross-border IPOs 18 Global perspective 21 Developments in regulation and markets 29 About IPO Watch Europe 30
  3. 3. Outlook for 2013 “With equity markets strengthening and volatility indices remaining stable, coupled with the positive after market performance of recent issues, the outlook for 2013 is encouraging. Collectively, these factors should provide an impetus to those companies that have been biding their time during 2012, as well as provide investors with the confidence to loosen their purse strings for quality IPOs priced sensibly.” Mark Hughes, Capital Markets partner, PwCPolitical and economic instability Strengthening stock market indicesConcerns over global growth prospects Low volatility Strong pipeline Current IPO indicators IPO Watch Europe 2012  1 
  4. 4. Recovery in activity in the Introduction final quarter boosted end of year performance After some respite from the eurozone crisis, equity markets strengthened and volatility indices eased. This led to the Against the back drop of challenging final quarter proving the strongest since IPO activity was weighed economic and political conditions 2012 Q3 2011, with 70 IPOs raising €7.5bn, proved a difficult year in Europe; only down by the economic and 263 IPOs raised €10.9bn, a 59% decline 69% of the overall money raised in the year. Consequently, eight out of the political issues in 2012 in value year-on-year compared with top 10 IPOs in Europe took place in the 430 IPOs raising €26.5bn in 2011. This final quarter. is partly explained by the absence of any jumbo IPOs in 2012 (Glencore’s IPO alone Highlights of the year included the final raised $6.9bn in 2011), but also due to a quarter IPOs of MegaFon and Direct Line drop off in activity levels, particularly in in London, and Talanx and Telefónica the natural resources sector. Deutschland in Germany, which all raised in excess of €0.75bn and The first half of 2012 was plagued by IPO accounted for 39% of the overall proceeds postponements and cancellations – both raised in the year. Encouragingly, these companies and investors were being IPOs have also performed well in the cautious because of volatile markets, aftermarket, providing some positive concerns surrounding the eurozone debt signs for 2013. crisis and a slow down in global growth prospects. London maintains number one position in Europe Figure 1: European IPO activity 2007-2012 London remained the dominant European Offering value (€bn) Number of IPOs market in 2012, raising almost 50% of 100 800 total European proceeds. However, the 771 city saw a 64% year-on-year decline in 700 value, with 73 IPOs raising just €5.1bn 80.5 80 compared with 101 IPOs raising €14.1bn 600 in 2011. London maintained its popularity 500 as the destination of choice for Russian 60 430 and CIS companies accessing overseas 400 380 capital markets, with 42% of total 40 proceeds in London raised by companies 300 295 263 from these regions. 26.3 26.5 200 20 14.0 126 Aftermarket performance has 10.9 7.5 100 been encouraging 0 0 Overall, the top 10 European IPOs 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 returned an average of approximately 15% on their offer price in 2012. This compares favourably to the FTSE 100, which increased by 6% year on year. Of the major IPOs during the year, Ziggo and DKSH were the stand out performers in the aftermarket, achieving returns of 34% and 37%, respectively.2  IPO Watch Europe 2012
  5. 5. Further offer activityunderpinned by financial Global perspective summaryservices Overall, there was a reduction in both the number of IPOs and value raised across the global capital markets in 2012. Markets were affected by problemsFurther offer (FO) activity on the in the eurozone, concerns surrounding global growth prospects and marketEuropean regulated markets saw a 3% volatility. Unpredictable volatility throughout the year made it difficult toincrease in value raised in 2012, from price deals, leading to a pricing mismatch between companies’ desired€76bn in 2011 to €78bn in 2012. valuation and the amount investors were willing to pay.Companies from the banking sectoraccounted for 33% of the total money Highlights of 2012:raised through FOs during the year,compared with 42% in the prior year. • The US showed some resilience, going from third to first position in terms of money raised.London reaffirmed its leading positionamongst the European capital markets • Greater China lost its leading position as the top territory by value, fallingin terms of FO value, raising €16.6bn, to second place.a 64% rise compared with 2011 andaccounting for 21% of overall proceeds • Europe maintained third position despite a poor year. London led the wayin Europe. The city attracted some on cross-border transactions.high-profile cross-border offers, • Malaysia rose up the ranking with a series of high-profile IPOs by domesticincluding Russia’s third largest companies.commercial bank, Sberbank, whichraised €4bn through a secondary listing • The IPO of Japan Airlines boosted the level of money raised in Japan morein the third quarter. than four-fold.Equity markets have beenboosted by banks raisingessential capitalOver the past two years, a number ofbanks have raised money on the equitymarkets, either through new IPOs or Global perspectiveFOs, to improve their balance sheets, 2012 2011meet newly imposed European capital Offering Offeringrequirements or repay state bailouts. Region total IPOs value (€m) IPOs value (€m)These include the IPOs of Bankia and US 146 33,164 134 25,581Banca Cívica in Spain in 2011, and Greater China (2) 239 22,842 420 57,240further offers by UniCredit on the Borsa Europe 263 10,928 430 26,491Italiana, Credit Suisse Group on the SIX Japan (1) 46 7,173 36 1,495Swiss Exchange and Banco Popular Malaysia 16 5,246 22 1,643Español in Spain in 2012. Latin America 15 5,005 21 6,153In 2012, we also saw several companies Canada 62 1,393 64 1,561spin off key assets, via IPOs on global Australia 54 1,336 105 1,195markets, to improve the capital position Singapore 21 1,316 23 5,350of the parent. These include RBSs spin Gulf Cooperation Council (1) 9 1,304 9 567off of Direct Line in London, Telefónica’sspin-off of its German arm and (1) he offering value of IPOs in these markets includes over-allotment or greenshoe amounts. TSantander’s spin off of its Mexican (2) ompanies from Greater China are able to list a different class of shares on the different Greater China Cbusiness through a dual listing in exchanges. In these cases, the data above includes the value of shares listed on each exchange and the listings as separate IPOs.Mexico and the US.We expect this trend to continue in themedium term, as those companies thatsurvived the height of the globalfinancial crisis in 2008-2010 find newways to survive the continued challengingeconomic and political conditions. IPO Watch Europe 2012  3 
  6. 6. 4  IPO Watch Europe 2012
  7. 7. However, as market conditionsIPOs by quarter improved as the year progressed the final quarter ended on a high, with €7.5bn being raised. This represented 69% of the overall money raised during the year, and was the strongest in Europe since the third quarter of 2011.2012 did not feature the pre-summer The global IPO market was also impactedand autumn boost in IPO activity by the disappointing aftermarketseen in previous years. Instead, performance of the US IPO of Facebook incompanies were left to react quickly May 2012 (dropping by 13% in the firstto narrow windows of opportunity week). Spurred on by the popularity of– a result of periods of market the social network website, the highlyvolatility and continuing economic publicised IPO was the largest in the US 69%and political uncertainty in Europe since General Motors in 2010 and was of IPO proceeds wereand globally. eagerly anticipated. The hype raised in the final quarter surrounding the transaction, the fall-outAfter a very disappointing end to 2011, around the investment banking processthe European capital markets showed and the poor aftermarket performancesome positive signs in the first quarter of further undermined the fragile2012, with the IPO of Ziggo on Euronext confidence of investors around the worldraising €0.8bn and DKSH on SIX Swiss during the summer months.raising €0.7bn. However, this momentumwas short lived and any proceeds raisedfell away quickly. Figure 2: European quarterly IPO activity 2010-2012 Volume by quarterMoney raised in the second and third 150 136quarters was extremely low. This 129 121downturn in activity was provoked by the 120 95height of the recent European sovereign 90 77 89 85 78 81 70debt crisis, when serious concerns were 56 56 60raised around the viability of Greeceremaining in the eurozone and Spain’s 30continuing economic woes. Only €0.4bn 0was raised in the third quarter, even Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012lower than during the height of the Value by quarter (€m)recession in the second quarter of 2009, 15,000 13,295when €0.5bn was raised. 12,000 10,115 9,014 9,370 9,000 7,538 6,000 4,678 2,479 2,960 3,000 2,297 866 726 367 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 Q4 2012 was the strongest quarter since Q3 2011 IPO Watch Europe 2012  5 
  8. 8. Top IPOs Figure 3: The top IPOs in Europe and globally Ten largest IPOs in Europe in 2012 Company Offering value €m (1) Exchange Sector Country of operations MegaFon 1,288 London Telecommunications Russia Telefónica Deutschland 1,260 Deutsche Börse Telecommunications Germany Direct Line 976 London Insurance UK Ziggo 804 Euronext Telecommunications Netherlands Talanx 767 Deutsche Börse Insurance Germany DKSH 681 SIX Swiss Industrial Goods Services Switzerland Alior Bank 511 Warsaw Banks Poland Kcell 444 London Telecommunications Kazakhstan Starwood European 281 London Investment Company UK Sherbourne Investors 257 London Investment Company UK Ten largest IPOs in Europe in 2011 Company Offering value €m (1) Exchange Sector Country of operations Glencore 6,867 London Basic Resources Switzerland Bankia 3,092 BME Banks Spain Dia 2,378 BME Retail Spain Jastrzębska Spółka Węglowa 1,346 Warsaw Mining Poland Vallares 1,182 London Investment Company UK Justice Holdings 1,063 London Investment Company UK Banca Cívica 600 BME Banks Spain Phosagro 530 London Chemicals Russia Nomos Bank 497 London Banks Russia Aker Drilling 455 Oslo Oil Gas Norway Ten largest IPOs globally in 2012 Company Offering value €m (1) Exchange Sector Country of operations Facebook 12,507 NASDAQ Technology US Japan Airlines 6,616 Tokyo Travel Leisure Japan Santander Mexico 3,178 NYSE (2) Banks Mexico PICC 2,747 Hong Kong Insurance China Felda Global Ventures 2,626 Malaysia Industrial Goods Services Malaysia IHH Healthcare 1,726 Malaysia (3) Healthcare Malaysia Haitong Securities 1,407 Hong Kong Financial Services China Banco BTG Pactual 1,312 Sao Paulo (4) Banks Brazil MegaFon 1,288 London (5) Telecommunications Russia Telefónica Deutschland 1,260 Deutsche Börse Telecommunications Germany (1) Money raised excludes greenshoe (2) Dual listed in NYSE and Mexico (3) Dual listed in Singapore (4) Also admitted to trading in Amsterdam (5) Dual listed in London and Moscow6  IPO Watch Europe 2012
  9. 9. Eight of the top 10 IPOs Global top 10 dominatedin Europe feature in the by Facebookfinal quarter The global top 10 was dominated by theThe money raised by the top 10 IPOs in much publicised Facebook IPO, whichEurope decreased by €10.8bn or 60% raised €12.5bn in quarter two. Japanin 2012 from €18.0bn to €7.2bn, partly Airlines IPO in September was theattributable to the absence of any second largest, raising €6.6bn after itjumbo IPOs, such as Glencore in 2011. relisted in Tokyo following a taxpayer-However, the contribution from the top funded restructuring process. The third10 IPOs to the overall money raised in largest IPO was the dual listing ofEurope during the year remained Santander Mexico in the US and Mexico,relatively stable at 66%, compared with in order to raise funds for the Spanish68% in the prior year. parent, which has been affected by economic problems in Spain.Eight of the top 10 IPOs in 2012occurred in the final quarter of the year, Only two European IPOs, MegaFon andfollowing the easing of the eurozone Telefónica Deutschland, made it into thecrisis and periods of share price global top 10 in 2012, in 9th and 10thvolatility that plagued markets in the position, respectively.first three quarters. The Bursa Malaysia also performed veryThe largest IPO of the year was well during the year, with two domesticMegaFon, the second largest mobile IPOs; the state-owned plantationphone operator and the fourth largest company Felda Global and Malaysiantelecoms operator in Russia. However, hospital operator, IHH Healthcare, boththis IPO would only have managed to entered the top 10 global transactionsreach fifth position in the European during the year.top 10 in 2011.IPOs in London accounted for five ofthe top 10 in Europe and the largestproportion of money raised of the top 10,44%, down from 56% in the prior year.The London Stock Exchange remains Eight out of the top 10 IPOsattractive for inbound activity, particularly were in the final quarterfrom Russia and the CIS, with the 2012top 10 featuring the IPOs of MegaFonfrom Russia and Kcell, Kazakhstan’slargest mobile phone operator. MegaFon was the largestLondon was also boosted by the European IPO of the yeardomestic IPO of insurance group, DirectLine, which was a spin off from RBS,the UK based bank part-nationalisedduring the recession. RBS was required Facebook was theto sell the insurance arm by theEuropean Commission to raise funds as largest IPO of the yearpart of the regulatory fall-out from thefinancial crisis. IPO Watch Europe 2012  7 
  10. 10. IPOs by exchange Figure 4: IPOs by exchange Stock exchange Company IPOs 2012 Offering value (€m) 2012 Company IPOs 2011 Offering value (€m) 2011 London Stock Exchange 73 5,137 101 14,104 Deutsche Börse 25 2,141 18 1,523 NYSE Euronext 19 1,038 27 154 SIX Swiss Exchange 4 801 2 – Warsaw Stock Exchange 105 731 203 2,200 Luxembourg Stock Exchange 7 564 20 451 Oslo Børs Axess 4 291 13 815 Borsa Italiana 4 168 6 503 NASDAQ OMX 17 48 30 292 BME (Spanish Exchanges) 5 9 9 6,083 Wiener Börse – – 2 366 Ireland Stock Exchange – – 1 17 Total Europe (1) 263 10,928 430 26,491 European-regulated London (Main) 24 4,349 39 13,371 Deutsche Börse 10 2,109 13 1,445 NYSE Euronext (Euronext) 11 1,015 8 43 SIX Swiss Exchange 4 801 2 – WSE (Main) 16 695 31 2,067 Oslo Børs 3 291 4 551 Borsa Italiana (Main) 1 158 3 494 NASDAQ OMX (Main) 8 38 13 288 Luxembourg (Bourse de Luxembourg) 1 – – – BME (Spanish Exchanges) – – 4 6,070 Wiener Börse – – 2 366 Total European regulated (1) 78 9,456 118 24,695 Exchange-regulated London (AIM) 48 741 60 516 Luxembourg (Euro MTF) 6 564 20 451 London (SFM) 1 47 2 217 WSE (NewConnect) (2) 89 36 172 133 Deutsche Börse (Entry Standard) 15 32 5 78 NYSE Euronext (Alternext) 8 23 19 111 Borsa Italiana (AIM) 3 10 3 9 NASDAQ OMX (First North) 9 10 17 4 BME (Spanish Exchanges) MAB 5 9 5 13 Oslo Axess 1 – 9 264 Ireland (ESM) – – 1 17 Total exchange-regulated (1) 185 1,472 312 1,796 (1) IPOs by market are shown gross of dual listings. However these are netted off in the Europe total number and offering values. – In 2011, International Consolidated Airlines Group dual listed in London and Spain but raised no money – In 2011, Continental Farmers Group dual listed in London and Ireland, raising €17m (2) In the table above, IPO proceeds from the individual transactions are and rounded to the nearest million and aggregated. 8  IPO Watch Europe 2012
  11. 11. Majority of European exchanges The SIX Swiss Exchange raised Exchange-regulated marketsshowed a year-on-year decline proceeds of €0.8bn, due to the IPO of DKSH, which raised €0.7bn in the first Of the exchange-regulated markets, AIM quarter of the year. was again the top performer by moneyThe money raised from IPOs in 2012 raised and accounted for over 50% offell by €15.6bn (59%) from €26.5bn proceeds raised on these markets. AIMto €10.9bn, driven by a 39% decrease The Spanish exchange was one of the biggest fallers in 2012, with only €9m saw a 44% increase in proceeds fromin the numbers of IPOs, which fell by €0.5bn to €0.7bn, despite a 20% drop in167 from 430 to 263. raised during the year, compared with €6.1bn in 2011 when it had three IPOs in the number of IPOs from 60 to 48. the European top 10. However, 2011 was However, the money raised was still wellLondon remained the largest market in below the €1.2bn raised on AIM in 2010.Europe with total proceeds of €5.1bn; flattered by the privatisation of domestica position the city has held for a number banks Bankia (€3.1bn) and Banca Cívica (€0.6bn), which, amongst other drivers, Eland Oil and Gas (€0.2bn) andof years. However, money raised by the Sherborne Investors (€0.3bn) wereexchange decreased by €9.0bn (64%) sought to strengthen their capital base. Activity in 2012 reflected the continued the largest AIM IPOs of the year.year-on-year from €14.1bn, partly drivenby a decrease in the number of IPOs economic uncertainty in Spain and thefrom 101 to 73 (28%) and the absence of impact of the continuing eurozone debtany jumbo IPOs. crisis. Investor confidence in Spain further deteriorated due to BankiaGermany’s Deutsche Börse was one of requiring a bail-out from the Spanishthe best performing exchanges relative government less than a year after its IPO.to the prior year, with 25 IPOs raising€2.1bn compared with 18 IPOs raising€1.5bn in 2011. The year was dominatedby the exchange’s two largest IPOs,Telefónica Deutschland and Talanx,which collectively raised €2.0bn andaccounted for almost all of the proceedsin the year. The IPO of TelefónicaDeutschland in October was the biggestGerman IPO in five years. 59% decrease inEuronext also experienced a large proceeds raisedincrease in proceeds, from €0.2bn in theprior year to €1.0bn in 2012, althoughthis was largely driven by onetransaction, the IPO of Ziggo in the firstquarter of the year. 39% decrease in number of IPOs 47% European proceeds raised in London IPO Watch Europe 2012  9 
  12. 12. IPOs by sector Figure 5: IPOs by sector IPOs by sector – by volume IPOs by sector – by value (€m) Sector 2012 2011 Sector 2012 2011 Investment Company 20 24 Telecommunications 3,837 53 Technology 15 10 Insurance 1,743 3 Pharmaceuticals Biotech 10 11 Investment Company 1,566 3,789 Retail 9 3 Industrial Goods Services 756 1,618 Mining 8 10 Banks 511 4,452 Industrial Goods Services 7 30 Technology 506 204 Telecommunications 6 1 Health Care 393 88 Utilities 6 4 Oil Gas 371 1,645 Health Care 5 6 Chemicals 265 530 Oil Gas 5 15 Retail 250 2,510 Real Estate 5 6 Financial Services 180 313 Chemicals 3 1 Pharmaceuticals Biotech 146 174 Financial Services 4 11 Utilities 135 63 Travel Leisure 3 5 Real Estate 82 972 Construction Materials 2 5 Mining 50 1,854 Food Beverage 2 11 Construction Materials 38 59 Insurance 2 1 Travel Leisure 38 100 Personal Household Goods 2 8 Media 15 136 Automobiles Parts 1 4 Personal Household Goods 15 461 Banks 1 7 Food Beverage 9 370 Media 1 7 Automobiles Parts 2 156 Basic Resources – 6 Basic Resources – 6,899 Note: Data only includes IPOs with a value greater than €1m.10  IPO Watch Europe 2012
  13. 13. The telecommunications sector was The banking sector experienced a Of the 13 natural resource IPOs, 12the top performer during 2012, with €3.9bn (89%) decline in 2012 due to the were hosted in London, reaffirming itsapproximately 35% of proceeds raised, IPO of two large Spanish banks in 2011. dominance as a natural resources hub.driven by four of the top 10 IPOs Notable transactions in these sectors(MegaFon and Kcell in London, There was a general reduction in during the year include Ruspetro, theTelefónica Deutschland in Germany number of IPOs and the money raised Russian oil and gas development andand Ziggo on Euronext). within the natural resource sectors production company, in the first quarter; compared with the prior year. Between and Eland; Oil and Gas, the African-The insurance sector was also these sectors, only €0.4bn was raised focused explorer, in the third quarter.given a significant boost by the IPO from 13 IPOs in 2012 compared withof Direct Line in London and Talanx in €10.4bn from 31 IPOs in the prior year. The technology sector saw an increaseGermany, which eventually got away The prior year included the large IPOs of in proceeds from €0.2bn to €0.5bn inafter several postponements during the Glencore and Polymetal in London and 2012 driven by an increase in theyear. Both IPOs occurred in the final Jastrzębska Spółka Węglowa in Warsaw. number of IPOs from 10 to 15. Six of thequarter of the year. 15 technology IPOs were hosted on AIM in London.Proceeds from investment companiesdecreased by €2.2m (59%) in 2012 dueto Vallares and Justice Holdings, whichboth raised in excess of €1bn in 2011.The industrial goods and servicessector was given a boost by the IPOof DKSH, the Swiss expansion servicesgroup, in the first quarter of the year,which raised €0.7bn. However, 2012lagged behind 2011 in terms ofthe number of IPOs and money raised. 35% of proceeds raised by the telecoms sector 96% decrease in proceeds raised by natural resources sectors 89% decrease in proceeds raised by the banking sector IPO Watch Europe 2012  11 
  14. 14. Figure 6: IPO price performance – Top 10 European and global IPOs 2012 IPO 16 15.1% performance 14 12 10 The top 10 IPOs in Europe and globally have performed well in the 8 aftermarket in 2012, with both 6 5.7% achieving average returns on the first 4 trading day after IPO of approximately 4% above the offer price. 2 0 Figure 6 shows that in 2012, the 1 Day 1 week 2 weeks 1 month 31 Dec 2012 European top 10 IPOs outperformed the % change in share price since IPO top 10 global IPOs, with Ziggo and DKSH Average Europe top 10 Average global top 10 the stand-out performers in Europe, trading 34% and 37% above the IPO Note: excludes investment companies price at the end of the year, respectively. Figure 7: IPO performance of the top 10 IPOs The aftermarket performance of the European top 10 IPOs is encouraging, Telefónica Deutschland 4 increasing from 8% one month after IPO to 15% by the 31 December 2012. 3 This compares favourably with the performance of global IPOs over the MegaFon -2 same period (5.7% increase on offer 19 price) and an average return of almost 6% on the FTSE 100. Direct Line 7 23 Ziggo 15 34 DKSH 6 37 Talanx 1 19 Alior Bank 7 10 Kcell 5 12 Borregaard -1 -1 MD Medical 1 4 % Change of share price IPO 1 day 31 Dec 2012 Note: excludes investment companies and closed end funds12  IPO Watch Europe 2012
  15. 15. 2012 top European IPOs: Demand for DKSH shares, the first The Direct Line IPO was the spin-off byIPO price versus published sizeable IPO in Switzerland since before RBS, where the bank was required to the global recession, was high during sell the insurance arm by Europeanprice range the bookbuilding stage due to its focus Union regulators as a condition ofFigure 8 shows that three out of the top on growth opportunities in the Far East. receiving its bailout, which wasIPOs priced at the bottom of their The share price was further buoyed by ultimately reflected in the IPO price.published range, while only two IPOs some impressive financial results during This IPO also attracted a higherpriced at the top of their range. The the year. proportion of retail investors thanremaining four transactions priced near other issues.to the middle of their range. Two of the IPOs that priced at the bottom of the range, MegaFon and Kcell Despite the high-profile postponementBoth Ziggo and DKSH priced at the top in London, have gone on to trade above of Talanax in September 2012, shares inof the range and went on to perform the offer price at the end of 2012. the subsequent IPO were trading abovewell in the aftermarket. the offer price and above the top of their Of the IPOs that priced near to the range at the end of 2012.Ziggo attracted significant investor middle of their range, Telefónicainterest during the bookbuild period, Deutschland and MD Medical arewhich can be attributed to it’s leading currently trading close to the offer price,position in the Dutch cable market. whereas Direct Line and Talanx are trading above the offer price. Figure 8: IPO price versus published price range for top European IPOsShare price Telefónica MegaFon Direct Line Ziggo DKSH Talanx Kcell Borregaard MD Medical Deutschland Price range IPO price Share price at 31 Dec Note: Borregaard is trading below their published range at 31 Dec 2012. Excludes Alior Bank, which listed in Warsaw, has been excluded from the analysis because it did not publish a range. Figure 8 shows the published price range for the top European IPOs in 2012 and the eventual IPO price relative to this range. The diagram also shows the share price as at 31 December 2012 relative to the price range and the IPO price. IPO Watch Europe 2012  13 
  16. 16. IPO indicators Figure 9: VIX volatility index compared with IPO proceeds Glencore IPO in London IPO of Bankia, Dia and IPO of Talanx and Banca Cívica in Spain, Telefónica Deutschland Phosagro in London and in Germany and JPW in Poland Direct Line in London Money raised (€m) VIX Index Eurozone financial Sovereign Greek and Spanish 12,000 40 crisis debt crisis bailouts and downturn in global 10,000 economic growth 30 8,000 6,000 20 4,000 10 2,000 0 0 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 2010 2011 2012 Money raised (€m) VIX Index Source: VIX volatility index, PwC analysis Volatility has made it difficult This feature has continued in the first Market indices are showing to price deals part of 2012 with market volatility – positive signs as we enter 2013 dissuading potential IPO candidates Figures 9 and 10 show over the last from preparing for IPO due to lower The markets strengthened during the three years there have been key periods than expected valuations as cautious of the first quarter of 2012 but were of market volatility that have disrupted investors seek higher discounts to quickly destabilised again in the second the IPO markets. listed peers. quarter, hitting a low in June, due to uncertainty in the eurozone, concerns over global economic growth and fallout from the unsuccessful Facebook IPO. Figure 10: 2012 indices – trading performance % In quarter three, the markets recovered 30 following a respite in the eurozone crisis and renewed optimism in China’s economic growth prospects. However, 20 uncertainty returned to the markets in October and November, driven by the 10 pending US election and concerns over the US fiscal cliff. 0 However, as we exited the year, markets rallied to their highest levels since the height of the global financial crisis in -10 2008, showing some positive signs as we move further into 2013. -20 J F M A M J J A S O N D 2012 CAC 40 FTSE 100 DAX Source: Exchange websites14  IPO Watch Europe 2012
  17. 17. IPO Watch Europe 2012  15 
  18. 18. Further offers Proceeds raised from further offers (FO) As shown in figure 11, London led the The Spanish Stock Exchange saw the on major European-regulated markets European capital markets in terms of value of further offers more than double, increased by 3% in 2012 from €76bn further offers value (21% of the overall from €3.4bn in 2011 to €8.1bn in 2012. in 2011 to €78bn, although the number proceeds) after being in third place in This was largely due Banco Popular, the of transactions reduced by 15% from 2011. London attracted some high-profile fourth largest FO of the year, raising 432 in 2011 to 368 in 2012. cross-border transactions during 2012, €2.5bn to improve its capital position. such as the secondary listing of Sberbank Similar to 2011, 2012 was dominated by (a company already listed in Russia), The Deutsche Börse experienced a drop European banks raising funds on the which raised €4.0bn in the third quarter. in further offer volume and value in equity markets to recapitalise and 2012, from €27.6bn in 2011 to €10.6bn strengthen their balance sheets, with Proceeds on NYSE Euronext more than in 2012. The value in 2011 was boosted a number also raising capital to repay doubled, from €6.3bn in 2011 to €14.4bn by the large FOs by Commerzbank, government bail outs following the in 2012, driven by an increase in the to repay capital borrowed from the impact of the global financial crisis. number of medium-sized deals. Notable German government during the Companies from the banking sector transactions include EADS, the European financial crisis, and Porsche Automobil, accounted for 33% of the further offer aerospace group that went through an the German car manufacturer, which proceeds raised during the year, ownership shake-up as European increased capital to reduce debt levels, compared with 42% in 2011. governments sought to reduce influence collectively raising €15.2bn in 2011. ahead of the potential merger with BAE Three of the top four further offers Systems, which was later abandoned. included the rights issue of: • UniCredit on the Borsa Italiana. • Credit Suisse Group on the SIX Swiss Exchange and; • Banco Popular Español in Spain Figure 11: Further offers 2011 and 2012 (€bn) 2012 2011 Other Other London (Main) 10.8 London (Main) 7.4 10.1 NASDAQ OMX 16.6 NASDAQ OMX NYSE Euronext 7.6 (Euronext) 6.6 6.3 BME (Spanish Stock Exchange) 3.4 BME (Spanish 8.1 Stock Exchange) 14.4 13.1 NYSE Euronext Borsa Italiana (Euronext) 10.6 27.6 Deutsche Börse 11.0 Deutsche Börse Borsa Italiana Source: Dealogic, PwC analysis16  IPO Watch Europe 2012
  19. 19. Figure 12: Top 5 European Further Offers 2012Company name Offering value (€bn) Exchange TypeUniCredit 7.5 Borsa Italiana Rights issueSberbank 4.0 London Shareholder sell down (secondary market)Credit Suisse Group 3.2 SIX Swiss Exchange Rights issueBanco Popular Espanol 2.5 BME (Spanish Stock Exchange) Rights issueEADS 1.7 NYSE Euronext Shareholder sell down (existing exchange)Source: Dealogic, PwC analysisFigure 13: Top 5 European Further Offers 2011Company name Offering value (€bn) Exchange TypeCommerzbank 5.3 Deutsche Börse Rights issueIntesa Sanpaolo 5.0 Borsa Italiana Rights issuePorsche Automobil 5.0 Deutsche Börse Rights issueCommerzbank 4.3 Deutsche Börse OtherDanske Bank 2.7 NASDAQ OMX Rights IssueSource: Dealogic, PwC analysis IPO Watch Europe 2012  17 
  20. 20. Cross-border IPOs Cross-border IPOs are deemed transactions where 50% or more of the proceeds are raised on a non-domestic exchange, based on the main country of operations of the issuer. Secondary listings and listings without money raised are excluded. Dual IPOs and their proceeds are allocated to the primary exchange, i.e. where 50% or more of the proceeds were raised. Figure 14: Annual cross-border IPO activity between 2003 and 2012 by volume of IPOs and value of proceeds raised % Cross-border IPO activity declined 25 in 2012 compared with 2011; however, the level increased as a proportion of total IPOs. In addition, 20 the overall level of proceeds decreased below levels experienced in 2011, primarily due to the 15 14 14 inter-regional IPO of Glencore in 12 London, which raised 6% of total 10 10 10 proceeds in 2011. 9 9 7 7 Volume Proceeds 5 2012 9% 9% 3 2011 7% 19% 0 4 8 11 25 18 17 3 7 19 9 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003-2012 10% 13% Proceeds Volume Source: Dealogic with PwC analysis Figure 15: Trends in cross border IPOs by exchange region (volume) 2003-2012 cross-border IPOS 2012 cross-border IPOs Other EMEA Other EMEA 11 United States 11 United States 22 25 3 Other Americas % % UK 41 UK 40 11 17 Singapore Hong Kong Singapore Hong Kong 13 6 Other Asia Pacific Other Asia Pacific Note: There were no cross-border IPOs in ‘Other Americas’ in 2012 Source: Dealogic, PwC analysis Key themes • London and New York lead cross- • Consistent with the past decade, • There has been a change in mix border IPOs, with 40% of all London remained the top cross- within the Asian region, with some of activity taking place in London and border destination in 2012, with 28 the developing exchanges, such as 25% in New York in 2012, raising cross-border deals raising €2.6bn, Taiwan, Malaysia and South Korea, 31% and 55% of total cross-border including some of high-profile gaining market share. However, proceeds respectively. Russian and CIS deals. transactions on theses exchanges have been relatively small.18  IPO Watch Europe 2012
  21. 21. Figure 16: Cross-border flows between key regions in 2012 within EMEA 15 intra-regional IPOs (€2.5bn) n .2b €1 O s, bn 20 IP 4 IP 13 . 00 Os – €0 ,€ O s, 0. 1b IP n 1 within Americas 2 IPOs, €0.1bn within Asia Pacific 3 intra-regional 15 intra-regional IPOs (€3.2bn) 2 IPOs, €0.5bn IPOs (€0.66bn)Source: Dealogic, PwC analysisFigure 16 shows the flow of cross-border No IPOs from Europe to Asia • 41 Chinese companies raised €3.3bnIPO activity between the key regions. in 2010 compared to only twoKey themes for 2012 are noted below. • In 2012, there were no European companies in 2012 raising less than companies raising money in Asia, €130m. In contrast, Chinese which contrasts with €2.7bn raised inIncreasing flows from Europe Hong Kong in 2009-2011, including companies raising capital in Europeto the US have increased to 15 raising €88m the luxury brands Prada and LOccitane. in 2012, from six in 2011 raising• Compared to recent years, more €150m. European companies chose to list in A decrease in Chinese companies the US. There were seven companies going to the US raised €0.8bn in 2012, including IPOs of Manchester United and Edwards. • Over the past three years, there has also been a reduction in the number of Asian companies, in particular Chinese, listing in the US, reflecting concerns over the quality of Chinese issuers. Figure 17: 2012 top 5 cross-border IPOs Issuer Country of origin Proceeds (€m) Sector Exchange nationality Santander Mexico Mexico 3,178 Financials USA MegaFon Russia 1,288 Telecoms Russia Sunshine Oilsands Canada 447 Oil Gas Hong Kong Kcell Kazakhstan 444 Telecoms UK GasLog Greece 255 Industrial US What to watch in 2013 and beyond • Increased interest in the US from • Rise in the number of companies • Intensified competition amongst European companies. from the emerging countries in Asian stock exchanges for cross- Africa and the Middle East listing border IPOs. • London still to be the dominant around the world. European exchange for cross- border activity. IPO Watch Europe 2012  19 
  22. 22. 20  IPO Watch Europe 2012
  23. 23. Global perspectiveThe fall-out from the financial crisis is • Europe was one of the worst • Value raised in Japan jumped morestill causing uncertainty in the global performing regions relative to last year; than four-fold, although more thancapital markets, with only the US however, it still managed to retain third 90% of total proceeds raised wereshowing some resilience out of the position in the global league table. from the Japan Airlines IPO.major exchange regions. • The Bursa Malaysia was in theIn 2012, global capital markets were spotlight for the first time, with asignificantly affected by ongoing series of high value domestic IPOs.stormy conditions in the eurozone, This trend is set to continue asconcerns around global growth companies involved in the country’sprospects, particularly the economic economic transformation programme,slowdown in China, and sustained including government-supportedperiods of market volatility. firms, look to the public markets in 2013 to raise finance.In 2012:• The US was the top performing Figure 18: Global perspective territory, rising from third position 2012 2011 in 2011, displaying some consistent Offering Offering Region total IPOs value (€m) IPOs value (€m) activity throughout the year. This was further fuelled by the jumbo IPO of US 146 33,164 134 25,581 Facebook in May, the largest IPO of Greater China (2) 239 22,842 420 57,240 the year. Europe 263 10,928 430 26,491 Japan (1) 46 7,173 36 1,495• The economic uncertainty stretched Malaysia 16 5,246 22 1,643 as far as Greater China, which had Latin America 15 5,005 21 6,153 proved relatively resilient over the Canada 62 1,393 64 1,561 past two years, resulting in the region Australia 54 1,336 105 1,195 losing its crown as the top territory Singapore 21 1,316 23 5,350 by value. Gulf Cooperation Council (1) 9 1,304 9 567 (1) he offering value of IPOs in these markets includes over-allotment or greenshoe amounts. T (2) ompanies from Greater China are able to list a different class of shares on the different Greater China C exchanges. In these cases, the data above includes the value of shares listed on each exchange and the listings as separate IPOs. Figure 19: Volume and value by region Volume of IPOs by region Value of IPOs by region (€bn) 1500 150000 1200 120000 Gulf Cooperation Council Singapore 900 90000 Australia Canada Latin America 600 60000 Malaysia Japan 300 30000 Europe Greater China US 0 0 2011 2012 2011 2012 IPO Watch Europe 2012  21 
  24. 24. Focus on Greater China In 2012, the number of IPOs on Greater Kennedy Liu, partner and head Figure 20: IPOs and offering value China’s stock exchanges nearly halved of Capital Market Services Group compared with 2011, and total funds Number of IPOs of PwC China/Hong Kong said: raised decreased by 60% to €22.8bn, 600 100,000 due to poor investor appetite for equities, “Corporate performance has been affected continuing global economic uncertainties by the continuous uncertainties of the 500 global economy. As such, investor interest 80,000 and high stock market volatility. for IPOs has cooled in recent years. 400 Hong Kong retained its leading position 60,000 among the stock exchanges in Greater However, there is a large pipeline of 300 China, accounting for almost 40% by companies already well progressed in the value of IPOs in the region. IPO process that are waiting for better 40,000 200 market sentiment before executing their However, the proceeds raised in Hong listing. Once the indicators begin to 20,000 Kong reduced by 64% in 2012 due to suggest investor confidence is improving, 100 the absence of any jumbo IPOs and leading to a narrowing of the pricing gap a reduction in the number of both that has existed in recent years, we expect 0 0 2010 2011 2012 international and domestic companies these companies to immediately re- completing listings on the exchange. commence their listing plans. The Offering value Number of IPOs renewed momentum in the IPO market Notes: The financial services sector led the in the final quarter of 2012 is tipped to 1 Companies from Greater China are able to list a way, with 46% of the money raised in continue into 2013.” different class of shares on the different Greater Hong Kong being driven by the two China exchanges. In these cases, the data above largest transactions of the year, PICC includes the value of shares listed on each and Haitong Securities. These raised exchange and the listings as separate IPOs. combined proceeds of €4.2m (excluding 2 Excludes transfers between GEM and Main Markets in Hong Kong. greenshoe) and achieved fourth and seventh in the top 10 global IPOs of year. The Shanghai and Shenzhen stock Figure 21: Comparison with Greater China exchanges also suffered from fragile 2012 2011 investor confidence during 2012, Offering Offering resulting in a decrease in funds raised Stock exchange IPOs value (€m) IPOs value (€m) by 25% and 76%, respectively, Europe 263 10,928 430 26,491 compared with 2011. Hong Kong 62 9,013 90 25,053 Shenzhen 26 4,739 243 20,118 However, in mainland China there are Shanghai 129 8,779 39 11,678 now over 830 enterprises waiting for a Taiwan 22 311 48 391 listing on the Shanghai and Shenzhen stock markets, indicating an active IPO Greater China total 239 22,842 420 57,240 market in 2013. However, their fund- raising plans may yet be affected by future economic and political trends and fluctuating levels of market confidence.22  IPO Watch Europe 2012

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