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IPO WatchEurope Q3 2016
www.pwc.co.uk/ipowatch
€3.8bnIPO proceeds raised in Q3 2016
(Q3 2015: €4.6bn, 17% decline)
52 IPOsin Q3 2016 across Europe
(Q3 2015: 53 IPOs, 2% decline)
€18.2bnIPO proceeds raised in YTD 2016
(YTD 2015: €35.7bn, 49% decline)
2 | IPO Watch Europe Q3 2016
3IPO Watch Europe Q3 2016 |
European IPO trends 4
Market volatility 6
Pricing and performance of top 5 IPOs 7
The sector story 8
London focus
Overview 9
Relative performance of London IPOs 10
PE trends and the sector story 11
Global perspective 12
Appendix 13
Contacts 16
Contents
Staytuned “The pipeline is encouraging, with a number of recent announcements
indicating that we are in for an active Q4. While the full impact from theUK’s vote to leave the EU is still to be realised, the initial reaction is that ithas not been as bad as had been feared.Although we are cautious as to whether 2016 manages to raise half of the€57bn raised in 2015, we do expect proceeds to reach the €25bn mark.”Mark HughesPartner, UK Capital Markets leader at PwC
4 | IPO Watch Europe Q3 2016
European IPO trendsNasdaq Nordic continued to be the most active Europeanexchange in terms of both activity and proceeds raised
Figure 1: Quarterly European IPO activity by value and volume
* Average offering value has been calculated based on total money raised including greenshoe, excluding listingsraising less than €5m
“Although Q3 is traditionally the quietest quarter for IPOs, this year wasparticularly slow. Q3 saw a number of planned transactions being delayed orcancelled allowing time to assess the impact on the market from the UK’s vote toleave the EU. As we enter the final quarter, the clouds appear to be clearing asIPO candidates seek to take advantage of the current market conditions, prior toany volatility which may result from the US presidential election.”Lucy TarletonDirector, Capital Markets at PwC
The sector storyFinancials continued to be the largest sector accounting for58% of Q3 proceeds raised
*Excludes greenshoe** Average proceeds have been calculated based on total proceeds including greenshoe, excluding listings raising less than €5m
Figure 10: IPO value by sector*
Consumer Services
7 IPOs raised in Q3 2016
€0.6bn*
Average IPO proceeds**
€198m
Largest IPO:
Takeaway.com€328m
(no greenshoe)
Industrials
5 IPO raised in Q3 2016
€0.8bn*
Average IPO proceeds**
€453m
Largest IPO:
ENAV€759m
(€834m incl. greenshoe)
Financials
18 IPOs raised in Q3 2016
€2.2bn*
Average IPO proceeds**
€443m
Largest IPO:
Nets€2,113m
(no greenshoe)
9IPO Watch Europe Q3 2016 |
London focus - OverviewLondon IPO proceeds are down 59% and activity is down 25%compared to YTD 2015
Figure 11: London IPO trends (by offering value)* Figure 12: London IPO trends (by volume)
7 9 6 19 14 28 8 6 18 16 5 22 9 7 3
616
19
21
18
26
1522
912
4
6
914
6
-
10
20
30
40
50
60
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Vo
lum
eo
fIP
Os
Main AIM
1.52.0
1.2 6.4 3.8 7.5 1.3 0.6 3.3 3.10.5
4.5 1.60.3 0.2
0.00.2
0.3
0.5
1.1
0.6
0.3 0.7
0.1 0.3
0.0
0.1
0.2
0.6 0.1
-
2
4
6
8
10
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Valu
eo
fIP
Os
(£b
n)
Main AIM
2013 2014 2015 2016
Issuer
Value (£m)
Sector Market PE backedExcl. greenshoe Incl. greenshoe
Hollywood Bowl Group 181 181 Consumer Services Main Yes
Ranger Direct Lending ZDP 30 30 Financials Main No
Autins Group 27 27 Consumer Goods AIM No
Dorcaster 10 10 Financials AIM No
LoopUp Group 9 9 Technology AIM No
Figure 13: Top 5 UK IPOs in Q3 2016
*Excludes greenshoe
£5.3bn £14.5bn £7.3bn
YTD‘13
YTD‘14
YTD‘15
£3.0bn
YTD‘16
Note: Ranking in £ sterling may be different from ranking in Euros due to exchange rate
63 109 64
YTD‘13
YTD‘14
YTD‘15
48
YTD‘16
2013 2014 2015 2016
10 | IPO Watch Europe Q3 2016
251
62
53
45
43
43
41
31
28
27
25
22
19
17
15
14
8
6
5
4
3
-2
-7
-7
-8
-9
-11
-13
-14
-14
-16
-20
-21
-39
-100% -50% 0% 50% 100% 150% 200% 250% 300%
Blue Prism Group (£21m)
Directa Plus (£13m)
Cerillion Technologies (£10m)
Comptoir Group (£16m)
Yu Group (£10m)
Hotel Chocolat Group (£56m)
Harwood Wealth Management Group (£14m)
CYBG (£396m)
Autins Group (£27m)
Metro Bank (£400m)
Accrol Group Holdings (£64m)
Mereo Biopharma Group (£11m)
LoopUp Group (£9m)
Ascential (£300m)
Joules Group (£78m)
Osirium Technologies (£9m)
Midwich Group (£75m)
MaxCyte (£10m)
Watkin Jones (£131m)
Ranger Direct Lending ZDP (£30m)
Hollywood Bowl Group (£181m)
Shield Therapeutics (£32m)
Hadrians Wall Secured Investments (£80m)
Draper Esprit (£79m)
Pacific Industrial & Logistics REIT (£10m)
Countryside Properties (£349m)
Morses Club (£68m)
Puma VCT 12 (£31m)
Forterra (£128m)
Motorpoint Group (£100m)
Dorcaster (£10m)
Oncimmune Holdings (£11m)
Time Out Group (£90m)
CMC Markets (£218m)
London focus - Relative performance ofLondon IPOs£1 invested in each of the UK IPOs raising more than £5mwould have resulted in a gain of £5.80 (or +17.1%)
Figure 14: Share price performance of London IPOs relative to the FTSE all share index, from IPO to 30 September 2016 (%)
Note: Threshold of £5m | Relative performance based on the FTSE All Share Index for Main Market listed companies and FTSE AIM All Share index for AIM quotedcompaniesSource: Thomson Reuters as of 30 September 2016
13companies haveunderperformed
the index
21companies haveoutperformed
the index
Main
AIM
11IPO Watch Europe Q3 2016 |
London focus - PE trends and the sector storyIn Q3 only Hollywood Bowl raised more than €50m (ca. £40m)in London
* UK IPOs raising over €50m, excludes closed-end funds, SPACs, SPVs, Capital Pool companies, Investment Managers, REITs, Royalty TrustsSource: Dealogic
By offering value (£m) Q1 2016 Q2 2016 Q3 2016 YTD 2016 YTD 2015 Variance vs.YTD 2015
Financials 980 268 40 1,287 3,611 (2,323)
Consumer Services 280 284 181 745 2,157 (1,413)
Consumer Goods 304 119 27 449 377 72
Industrials 131 201 - 333 525 (192)
Health Care 42 22 - 65 213 (148)
Technology 35 9 9 52 405 (352)
Utilities 10 4 - 14 - 14
Basic Materials - 13 - 13 10 3
Telecommunications - - - - - -
Oil & Gas - - - - - -
Total value (£m) 1,782 920 256 2,958 7,297 (4,340)
Figure 17: London IPO value by sector (excl. greenshoe)
Figure 16: Volume of London PE-backed IPOs vs non PE-backedIPOs in London*
Figure 15: Value of London PE-backed IPOs vs non PE-backedIPOs in London*
75%100%
50%
43%53%
59%
33%
33% 89%50%
50%
70%
50%
56%
100%
-
5
10
15
20
25
30
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Vo
lum
eo
fIP
Os
PE-backed Non PE-backed
82%100%
84%
46%
53%
74%
79%54%
98%
59%
65%
93%
58%
60%100%
-
1
2
3
4
5
6
7
8
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Valu
eo
fIP
Os
(£b
n)
PE-backed Non PE-backed
2013 2014 2015 2016 2013 2014 2015 2016
12 | IPO Watch Europe Q3 2016
Global perspectiveProceeds raised in Asia Pacific were almost double thecombined value of the Americas and EMEA, but 2 of the top 3IPOs listed in Copenhagen
Figure 18: Global IPO activity*
189
249225
365
271
365
294
376
301
475
222
377
215243
270
-
50
100
150
200
250
300
350
400
450
500
-
10
20
30
40
50
60
70
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Vo
lum
eo
fIP
Os
Valu
eo
fIP
Os
(€b
n)
EMEA (€bn) Americas (€bn) Asia Pacific (€bn) IPOs
* Excludes greenshoeSource: Dealogic
Date Issuer€m (incl.
greenshoe)Exchange Sector Deal type
Sep-16 Postal Savings Bank of China 6,648 Hong Kong Financials Privatisation
Jun-16 Dong Energy 2,647 Nasdaq Copenhagen Utilities Privatisation/ PE
Sep-16 Nets 2,113 Nasdaq Copenhagen Financials PE
Mar-16 China Zheshang Bank 1,720 Hong Kong Financials -
Jul-16 LINE 1,196 NYSE, Tokyo Technology Carve-out
Apr-16 MGM Growth Properties 1,068 NYSE Financials Carve out
May-16 US Foods Holding 1,048 NYSE Consumer Goods PE
Jun-16 BOC Aviation 1,004 Hong Kong Industrials Carve out
Aug-16 Bank of Jiangsu 986 Shanghai Financials -
Figure 19: Top 10 global IPOs YTD 2016
2013 2014 2015 2016
“The DONG Energy A/S and Nets A/S IPOs in Q2 and Q3 are the largestin Europe so far this year. These combined with the 54 other IPOs onNasdaq Nordic mean that the Nasdaq Nordic is the most active Europeanexchange for the year to date in terms of number of IPOs and the largestin terms of proceeds. The pipeline also looks strong, with a number ofopportunities lining up for IPO, however, whether these will happen inQ4 or 2017, is hard to say.”Rasmus Friis JørgensenPartner, PwC Denmark
This publication has been prepared for general guidance on matters of interest only, and does not constitute professionaladvice. You should not act upon the information contained in this publication without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained inthis publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents donot accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, orrefraining to act, in reliance on the information contained in this publication or for any decision based on it.
IPO Watch Europe surveys all new primary marketequity IPOs on Europe’s principal stock markets andmarket segments (including exchanges in the EU,Iceland, Norway, Turkey and Switzerland) on a quarterlybasis. Movements between markets on the sameexchange are excluded.
This survey was conducted between 1 July and 30September 2016 and captures IPOs based on their firsttrading date. All market data is sourced from the stockmarkets themselves and has not been independentlyverified by PricewaterhouseCoopers LLP.