ey q3 13 global ipo update

8/12/2019 EY Q3 13 Global IPO Update

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Q313 Global IPO update

September 2013


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Page 2

Table of Contents

Section Content

1 Q313 highlights

2 Global IPO activity trends

3 Regional analysis

4 Industry analysis

5 Stock exchange analysis

6 Pricing range

7 Follow-on activity

8 Withdrawals and postponements

9 Appendices


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Page 3

Section Content

1 Q313 highlights


3 Regional analysis

4 Industry analysis


6 Pricing range



9 Appendices


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Q313 Global IPO updatePage 4

Global IPO activity Q313 Q213 % change(Q-o-Q)

Q312 % change(Y-o-Y)

Number of deals 160 206 -22.3% 191 -16.2%

Capital raised US$18.2b US$46.2b -60.5% US$29.6b -38.3%

Q313 saw a 22% decrease in the number of IPOs and a 61% decrease inproceeds, compared to Q213

Top 20 IPOs accounted for 56.1% of the global capital raised in Q313 One deal with capital raised above US$1b in Q313,compared to 12 deals in Q213 and threedeals in Q312

Issuer name Domicile Country Specific Industry Exchange Proceeds (US$m) % of global capitalraised in Q313

Envision Healthcare Holdings Inc United States Hospitals New York (NYSE) 1,110.9 6.1%

American Homes 4 Rent United States REITs New York (NYSE) 811.8 4.4%

Frank's International NV United States Oil & Gas New York (NYSE) 759.0 4.2%

Top three IPO deals (by capital raised) during the quarter

IPO activity summary

An additional 37 IPOs are scheduled before the quarter-end that will raise an additionalUS$6.1b if successful, capital raised willincrease by nearly 34% over Q313

Note: The Q313 Global IPO update covers global IPO activity from 1 January to 19 September 2013.Source: Dealogic, EY


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PE- and VC-backed IPOs decreased in number and proceeds raised comparedto Q213

PE-backed IPOsworldwide*

Q313 Q213% change(Q-o-Q)

Q312% change(Y-o-Y)

Number of deals 22 (13.8% of global total) 40 (19.4% of global total) -45% 20 (10.5% of global total) 10.0%

Capital raised US$4.8b (26.4%) US$13.4b (29.1%) -64.1% US$4.0b (13.4%) 21.3%

VC-backed IPOsworldwide*

Q313 Q213% change(Q-o-Q)

Q312% change(Y-o-Y)

Number of deals 18 (11.3% of global total) 22 (10.7% of global total) -18.2% 16 (8.4% of global total) 12.5%

Capital raised US$1.6b (8.6%) US$1.9b (4.1%) -16.7% US$1.2b (4.1%) 27.6%

Issuer nameDomicileCountry

Specific Industry Exchange Proceeds (US$ m)% of global capital

raised in Q313

RetailMeNot Inc United States Internet Software & Services NASDAQ 219.5 1.2%

Intrexon Corp United States Biotechnology New York (NYSE) 184.0 1.0%

Open House Co Ltd JapanReal Estate Management &

DevelopmentTokyo (TSE) 142.5 0.8%

*Note: 9 IPOs are backed by both PE and VC, raising US$0.9b in Q313.

Issuer nameDomicileCountry

Specific Industry Exchange Proceeds (US$m)% of global capital

raised in Q313

Envision Healthcare Holdings Inc United States Hospitals New York (NYSE) 1,110.9 6.1%

Deutsche Annington Immobilien GmbH Germany Real Estate Management &Development Deutsche Borse 738.5 4.0%

Sprouts Farmers Markets Inc United States Food and Beverage NASDAQ 383.0 2.1%

Top three PE-backed IPOs (by capital raised) during the quarter

Top three VC-backed IPOs (by capital raised) during the quarter

PE- and VC-backed summary

Data up to 19 September 2013, 9am IST. Source: Dealogic, EY


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Emerging markets* made up 51% of the global deals and 37% of capital raised in Q313:

BRIC markets raised US$1b (5% of global total) through 19 (12%) deals in Q313 as compared to US$10.9b (24%)through 17(8%) deals in Q213 and US$6.0b (20%) raised through 70 (37%) deals in Q312.

Thailand, Singapore and Indonesia were some of the other active emerging markets during this quarter.

Pricing:

92% of global IPOs priced within or above their initial filing range in Q313, slight increase from 88% in Q213.

The majority of the IPOs (83%) were priced within their initial filing range, lower than the historical 10-year average of86%. 9 % of IPOs were priced above their initial filing range and 8% of IPOs were priced below their initial filing range.

Withdrawals and postponements: There were 29 postponed or withdrawn IPOs in Q313, compared to 40 in Q213 and 48 in Q312.

State-owned enterprises (SOEs):

There was one IPO listing from SOE privatization in Q313 New Zealands power company Z Energy Limited, raisingUS$0.7b.

Follow-on offerings:

There were 761 global follow-on offerings, raising US$98.1b in Q313 as compared to 895 deals raising US$153.0b in

Q213 and 736 deals raising US$152.5b in Q312. Follow-on offerings constituted 76% of global equity capital markets activity in Q313 by capital raised, while IPOs

represented 14%. Convertibles accounted for 10%.

Emerging markets contributed around half of global IPO activity; majority ofglobal IPOs priced within their initial pricing range

*Please see the Appendix for the definition of emerging markets. Based on the listed company domicile.Data up to 19 September 2013, 9am IST.Source: Dealogic, EY


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Q313 key highlights: geography, industry and exchange

Geographical analysis Industry analysis Exchange analysis

By number of IPOs: Asia Pacific issuers maintained their

dominance in deal volume, accountingfor 49% of the total deals in Q313,followed by North America, whichaccounted for 30% of the total deals.

The market shares of EMEA, and Centraland South America were 18% and 4%respectively.

By country, the US, Greater China* andthe UK led the pack with 42, 16 and 10deals respectively.

By capital raised: North America was at the top in terms

of capital raised, accounting for 48% ofthe global total.

Asia Pacific and EMEA were rankedsecond and third with 30% and 13%

share respectively, while Central andSouth America accounted for 9%.

By country, the US, Singapore andGreater China* were the top threecountries in Q313 with 45% (US$8.2b),9% (US$1.7b) and 5% (US$0.9b)respectively.

.

By number of IPOs: NASDAQ was the most active exchange,

with 24 IPOs, closely followed by NYSEwith 23 IPOs. The two accounted for29% of the total number of deals.

Among stock exchanges from AsiaPacific, Hong Kong Stock Exchange wasthe most active with 12 IPOs.

By capital raised:

The two exchanges in the US NYSEand NASDAQ accounted for 51% of thecapital raised globally.

NYSE was the top grosser of Q313raising US$7.2b (40% of the totalcapital raised globally).

NASDAQ (US$2.1b) and SingaporeStock Exchange (US$1.5b) were rankedsecond and third respectivelyaccounting for 11% and 8% share.

The top three sectors accounted for 41%of total IPO deals.

Health care (23 deals)

High technology (22 deals)

Energy (21 deals)

By number of IPOs:

The top three sectors accounted for 69%of total deal value

Energy (US$5.6b)

Real estate (US$4.6b)

Health care (US$2.3b)

Average deal size during this quarterstood at US$114m.

The energy sector had an averagedeal size of US$266.8mhighest

among all sectors.

By capital raised:

*Greater China includes Mainland China (9 deals raised US$578m), Hong Kong (6 deals raised US$84m), Macau (1 deal raised US$283m)

Data up to 19 September 2013, 9am IST. Source: Dealogic, EY


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Q313 key highlights: top 20 IPOs

* Data up to 19 September 2013, 9am ISTSource: Dealogic, EY

Overview

Keyexchanges

Key regions

Key sectors

The top 10 IPOs together raised US$6.4b, which represents 35% of global proceeds. In Q313, the top 20 IPOs raised US$10.2b, contributing 56% of global proceeds, as compared to US$46.2 (63%)

and US$29.6 (71%) in Q213 and Q312 respectively. The drop in proceeds in Q313 is attributed to a fall in IPOs raising more than US$1b. There was one such deal inQ313 compared to 12 listings in Q213 and three in Q312.

In line with recent trends, NYSE has been the most active exchange for top IPOs in Q313, accounting for nine ofthe top 20 IPOs. Among the nine deals, two were cross-border listings, one each from Peru and Bermuda.

17 of the top 20 listed on their home exchange (as their primary exchange). Two larger listings are expected on NASDAQ in the last week of September, with expected deal sizes of US$690m

and US$320m respectively.

North America emerged as the highest contributor to IPO activity in Q313 (nine deals raising US$5.1b 50% ofglobal proceeds). This is in stark contrast to the pattern seen in Q213 as well as in Q312 where more of the fundsraised in top 20 IPOs came from Asia Pacific.

Only one deal from the BRIC nations featured in the top 20 club in Q313. Nine out of the top 20 deals were from emerging markets, accounted for 36% of proceeds raised by the top 20

deals. The share of emerging markets in proceeds raised by top 20 deals in Q313 was lower than in Q213 (45%)and Q312 (51%).

Energy and real estate were the top sectors in Q313, raised US$4.0b (eight deals) and US$3.6b (seven deals)respectively. However, in both Q213 and Q312, industrial and financial led the top 20 list.

PE/VCbacked

Five of the top 20 deals were private equity-backed IPOs in Q313. This compares to nine IPOs in Q213 and twoIPOs in Q312.


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Key factors and Q413 OutlookGlobal IPO activity is expected to be strong in Q413, driven by globaleconomic recovery

Factors driving Q313 activity

Global IPO activity fell in Q313, with projected activity to be 197 deals

with proceeds around US$24.4b. This is 4% down by deal numbers and27% by deal value compared to Q213. It is worthwhile to note that Q3 istraditionally the least active quarter compared with Q2 and Q4.

IPO activity in Q313 was a story of two halves. In July and August, signsof improving macroeconomic conditions, particularly in the developedeconomies, coupled with continuing loose monetary conditions globally,saw lower market volatility and supported public listings. Marketconditions turned in September as investor concern grew on impendingmonetary tightening by the US drove volatility higher and putting riskassets, especially in the emerging markets, and IPO activity under

pressure.

Note: TheQ313 Global IPO update

covers global IPO activity from 1 January to 19 September 2013

Q413 outlook

Global IPO activity is expected to lift in Q413. Global IPO volume couldreach 200 250 listings, generating total proceeds of around US$30-40b.This would be in line with Q412 levels.

The uplift in IPO activity could vary from region to region, both in terms oftiming and pace of activity. The outlook for emerging markets is softer dueto slower economic growth having a negative impact on institutional

investors appetite for new listings. Conversely, improving economicconditions and investor interest in developed market equities could supportrelatively firm IPO activity in major markets including the US, Germany andthe UK.

PE-backed IPO deals are expected to rise in Q413, given that filings havebeen increasing and there is a significant pipeline of PE-backed companieswaiting to go public. In addition, better valuation and solid aftermarketperformance of recent listings is an important catalyst for PE investors totake companies public.

Investors have been encouraged by risingvaluations but moving forward, pricing remain acritical concern. In this market, more than ever,firms need strong brand names or earningstrack records to obtain appropriate pricing and

secure investor support.Maria Pinelli,Global Strategic Growth Markets Leader

Despite a comparatively quiet third quarter,global IPO activity is expected to lift throughthe remainder of the year and into 2014. Theuplift in activity will vary from region to regionboth in terms of timing and pace.

Maria Pinelli,Global Strategic Growth Markets Leader


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Section Content

1 Q313 highlights


3 Regional analysis

4 Industry analysis


6 Pricing range



9 Appendices


11/31


Global IPO activity trendsIPO activity saw a fall in Q313, both in terms of deal numbers and capitalraised compared to Q312

*Data up to 19 September 2013, 9am IST. Source: Dealogic, EY

$ 105 $ 159 $ 214 $ 99 $ 46 $ 153 $ 141 $ 91 $ 89

11111165

1379

678

277

889970

637529

0

500

1000

1500

2000

2500

0

50

100

150

200

250

300

350

400

2005 2006 2007 2008 2009 2010 2011 2012 2013*

NumberofIPOs

Capitalraised(US$b)

Capita l raised during Q1-Q3 (US$b) Capital ra ised during Q4 (US$b)

Number of IPOs during the year Number of IPOs during Q1-Q3

$18 $44 $30 $37 $24 $46 $18

204

242

191 200

163

206

160

0

50

100

150

200

250

0

20

40

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13*

Numberof

IPOs

Capitalraised(US$b)

Capital raised (US$b) Number of deals

$2 $4 $12 $13 $22 $8 $10 $3 $16 $17 $8 $12 $ 9 $8 $8 $15 $15 $16 $11 $6 $2

44

7387 92

77 73

95

4353

7461 65

4957 57 56

7971

92

47

21

0

20

40

60

80

100

120

140

160

180

200

0

10

20

30

40

50

60

Jan'12

Feb'12

Mar'12

April'12

May'12

June'12

July'12

Aug'12

Sep'12

Oct'12

Nov'12

Dec'12

Jan'13

Feb'13

Mar'13

Apr'13

May'13

Jun'13

Jul'13

Aug'13

Sep'13*

NumberofIPOs

Capitalraised(US$b) Capital raised (US$b) Number of deals

Quarterly IPO activity (2012-2013YTD) Monthly IPO activity (2012-2013YTD)

Global IPO activity (2005-2013YTD)

For 2013YTD, while the number of IPO deals decreased by 17%, theproceeds raised decreased by only 2%, when compared to the first

nine months of 2012.

When compared to Q213, while the number of deals in Q313decreased by 22%, the proceeds declined by 61%. The significantdrop in IPO proceeds was primarily because Q213 saw 12 megadeals (with capital raised more than US$1b) compared to only onedeal, US based Envision Healthcare Holdings Inc which raisedUS$1.1b in Q313.

September 2013 has, so far, seen 21 IPO listings raising US$1.5b.Mexicos Controladora Vuela Compania de Aviacion SAB de CV,which raised US$346.1m, is the largest deal so far.

37 more listings worth US$6.1b are expected by the end of themonth. We expect China Huishan Diary Holding Co LtdsUS$1.3blisting, USs Premier Inc US$690m and UKs Foxton Group plcUS$558m IPO listings to be completed by end of September.


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Global IPO activity trendsDiverging performance for the developed and emerging markets despite improving globalmacroeconomic conditions

*Data updated as 19 September 2013. Source: S&P Capital IQ

*Data updated as on 19 September 2013. Source: S&P Capital IQ

Year-to-date equity market returns Major indices

OECD Leading indicator growth vs. number of IPOsMSCI World Index market performance

9%

22%16%

25%

6%

13%10% 9%

42%

25%21%

14% 12%

4%0%

-9%-20%

-10%

0%

10%

20%

30%

40%

50%

Nikkei NASDAQ S&P 500 DAX 30 FTSE 100 Hang Seng KOSPI IBOVESPA

%Equitymarketreturns

year-to-date

2012 YTD return 2013 YTD return

-2

-1

0

1

2

3

4

5

6

0

100

200

300

400

500

600

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Q412

Q1'13

Q213

Q313

Q413

Q114

OECD

LeadingIndicatory/y

growthrate

Numbero

fIPOs

Number of IPOs OECD +6 Major Emerging Economies Leading Indicator

800

900

1.000

1.100

1.200

1.300

1.400

1.500

1.600

Jan-04-2010Sep-04-2010 Mai-04-2011 Jan-04-2012 Sep-04-2012 Mai-04-2013

Indexvalue


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Global IPO activity trendsIn 1H13, the median value rose globally, when compared to the last twoyears, with an exception of the Asia-Pacific region

*Data updated up to 19 September 2013. Source: Dealogic

Median deal values trended higher for Americas andEMEIA between 2011 to 2013YTD but trended lowerfor Asia-Pacific, reflecting smaller deal sizes in Asia-Pacific.

Median deal values rose during the year forAmericas and EMEIA. For Q413, we expect mediandeal values to rise for all 3 regions while market andinvestor confidence builds.

Annual median deal size by region, US$m

0

20

40

60

80

100

120

140

Americas EMEIA Asia-Pacific

2011 2012 2013 YTD

Quarterly median deal size by region, US$m

0

10

2030

40

50

60

70

80

90

100

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q1'13 Q213 Q313

MediandealvalueUS$m

Asia-Pacifc Americas EMEIA All


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Section Content

1 Q313 highlights


3 Regional analysis

4 Industry analysis


6 Pricing range



9 Appendices


15/31


Regional AnalysisAsia Pacific and North America accounted for close to 80% of global IPOactivity, both in terms of deals and capital raised in Q313

*Data up to 19 September 2013, 9am IST. Based on the listed company domicileSource: Dealogic, EY

In Q313, while Asia-Pacific continued to lead in terms of the number of IPOs (accounting for close to 50% of the global total), North America led in termsof total proceeds raised accounting for 48% of global proceeds while Asia-Pacific had a 30% share.

Across all regions, IPO activity remained soft in Q313 compared to Q213. In terms of proceeds raised, Central and South Ame rica saw lower activity(80% decline), followed by Asia-Pacific (70%), q-o-q. However, in terms of deal volume, while the number of IPOs in the Asia-Pacific and Central and SouthAmerica regions remained almost the same, the EMEA and North America recorded a decrease of 52% and 24%, respectively.

Compared to Q312, while capital raised rose by 108% and 115% in EMEA and North America respectively in Q313. Asia -Pacific and Central and SouthAmerica saw a decline of 72% and 69%, respectively. However, in terms of number of IPOs, while Asia Pacific and EMEA recorded a decrease of 38% and13%, respectively, the deal volume increased in North America by 66% and in Central and South America by 20%.

19,2 17,9

5,4

1,2 6,7

2,5

4,1

13,8

8,8

5,0

7,8

1,6

0

5

10

15

20

25

30

35

40

4550

Q3'12 Q2'13 Q3'13*

Proceeds(US$b)

Asia Pacific Europe, Middle East and Africa

North America Central and South America

Regional share by capital raised (US$b)

125

78 78

32

58

28

29 63

48

5

7

6

0

50

100

150

200

Q3'12 Q2'13 Q3'13*

NumberofIPOs

Asia Pacific Europe, Middle East and Africa

North America Central and South America

Regional share by number of IPOs


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North America

*Greater China includes Mainland China (9 deals), Hong Kong (6) and Macau(1) issuers. Based on the listed company domicile. Data up to 19 September 2013, 9am IST.Source: Dealogic, EY

5

56

8

8

8

9

10

16

Malaysia

South KoreaAustralia

Indonesia

Japan

Thailand

India

Singapore

Gr. China

0,3

0,3

0,4

0,7

0,8

0,9

1,7

Japan

Australia

Indonesia

Thailand

New Zealand

Gr. China

Singapore

0,1

0,1

0,3

0,4

0,6

0,7

South Africa

Norway

UK

Iran

Ireland

Germany

1

5

42

Bermuda

Canada

US

0,2

0,3

8,2

Canada

Bermuda

US

1

12

2

2

3

4

10

Norway

UkraineBelgium

Israel

South Africa

Ireland

Poland

UK

Asia-Pacific EMEA

By capitalraised

Number ofdeals

The US led in terms of total proceeds raised with seven of the top 10 IPOs, followed by Singapore and New Zealand. There was one deal with capital raised above US$1b. The top three IPOs, accounting for 14.7% of capital raised globally, were from the US.

The US dominated the global IPO landscape in terms of deal number, far exceeding the total in Greater China* and the UK, which ranked secondand third respectively. The most active sub-areas in the US were West and Southwest, accounting for 12 and nine deals respectively.

Developing countries accounted for 50.1% of the number of deals globally and 37.4% of the total global capital raised.

Q313 Regional analysis by countryAcross countries, the US dominated the global IPO landscape, by dealnumbers and proceeds raised

1

1

2

2

Peru

Brazil

Jamaica

Mexico

0,4

0,4

0,7

Brazil

Peru

Mexico

Central and SouthAmerica


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Regional analysis: by emerging marketsAverage deal size decreased by 59% on a q-o-q basis.

$223 $66 $95 $197 $103 $61$35

1044

501413

972

851

518

256

-100

100

300

500

700

900

1.100

0

40

80

120

160

200

240

2

007

2

008

2

009

2

010

2

011

2

012

20

13*

NumberofIPOs

Capitalraised(US$b)

Annual IPO activity in emerging markets Title

*Data up to 19 September 2013, 9am IST. Based on the listed company domicile. Source: Dealogic, EY

$30 $62 $46 $85 $23 $31 $10 $2 $1 $8 $27 $60 $32 $35 $44 $86 $30 $36 $17 $19 $9 $18 $16 $19 $9 $19 $7

194

269 262

319

148

194

108

5136 58

109

210 203222 218

329

218

261

199173

125154 140

9984 91 81

0

50

100

150

200

250

300

350

400

0

20

40

60

80

100

Q1'07

Q2'07

Q3'07

Q4'07

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13*

Numb

erofIPOs

Capitalraised(US$b)

Quarterly IPO activity in emerging markets

For 2013 YTD, the emerging markets accounted for 39% ofglobal proceeds raised and 48% of completed IPO deals globally.However, in Q313, these countries accounted for 37% of total

proceeds and 51% of total deals.

IPO activity in emerging markets saw a huge dip (64%) in termsof proceeds raised in Q313 compared to the previous quarter.Q213 saw four billion-dollar deals (with Brazilian company, BBSeguridade Participacoes SA raising US$ 5.7b) compared tonone in Q313. The largest deal from the emerging marketsduring Q313 raised US$475.9m.

Compared to Q312, IPO activity in Q313 declined by 58% and42% in terms of proceeds raised and deal volume, respectively,primarily due to a decline in IPO activity in China, Malaysia and

Mexico. In Q312, the three countries together accounted for80% of total proceeds raised in emerging countries and 50% ofdeal volume.


18/31


Number of IPOs

6

12

8

15

16

32

9

33

14

16

20

10

2

6

6

8

8

9

16

19

20

21

22

23

Telecommunications

Consumer roducts andservices

Media and entertainment

Consumer staples

Retail

Materials

Financials

Industrials

Real estate

Energy

Technology

Healthcare

Q3'13 Q3'12

Industry analysisThe energy sector raised 31% of global proceeds in Q313

Capital raised (US$b)

0,1

0,5

2,4

0,6

0,8

1,3

5,1

1,3

10,6

2,8

2,5

1,7

0,0

0,0

0,3

0,7

0,7

0,8

0,9

0,9

1,4

2,3

4,6

5,6

Telecommunications

Consumer products andservices

Materials

Consumer staples

Media and entertainment

Retail

Financials

Technology

Industrials

Health care

Real estate

Energy

Q3'13 Q3'12



19/31


Stock exchange analysis: summaryAsia Pacific and Americas exchanges dominated the global IPO market bydeals and capital raised respectively

Greater China: HKEx and GrowthEnterprise Markets only active exchanges

Hong Kong Stock Exchange (HKEx)accounted for the most deals in Asia Pacificand ranked third by capital raised in the Asia

Pacific region (US$957m via 12 deals)

Singapore: emerged as a key exchangethis quarter Witnessed four deals that raised $1.5b Accounted for 28% of proceeds raised in Asia

Pacific

Japan: Slower activity q-o-q in terms ofdeals and capital raised Seven deals that raised US$288.8m

compared to US$5.8b via 10 deals in Q213

Australia and New Zealand: Slower activityin terms of deals and dollars The region witnessed seven deals raising

US$1.1b compared to US$2.2b via 13 dealsin Q213

US: remains the key region accounting for51% of global proceeds

US exchanges (NYSE and NASDAQ) raisedUS$9.2b in 47 deals

In Q313, 47% of deals and 41% of proceedsraised in the US were backed by PE and/orVC firms

With US$7.2b raised in 23 deals, the NewYork Stock Exchange was the highestgrossing exchange

Heath care (15 issuers raising US$2.0b) andEnergy (eight issuers raising US$3.1b) werethe two most active sectors

Central and South America: led by Mexico,raised 6% of capital globally

Although the exchanges accounted for only3% of the global deal count, the average issuesize was US$227.5m compared to the globalaverage issue size of US$114m in Q313.

Asia-Pacific exchangesUS exchanges EMEA exchanges

47% of number of deals and30% of capital raised



Key regions/exchanges during the quarter

Europe: led by the UK, raised 6% of globalproceeds:

Saw 24 IPOs raising US$1.7b in Q313 (15%of global number of deals); a decrease of 43%in deal count and 63% in the capital raised

compared to Q213 Deutsche Bourse had the highest proceedsraised across European exchanges withUS$738.5m raised in one IPO offering.

London Alternative Investment Market (AIM)had the highest number of IPOs acrossEuropean exchanges; ranked third globally bynumber of deals (14) raising US$389m.

Middle East and Africa: Stronger activityq-o-q in Middle East but slower in Africa

Middle East exchanges raised US$445.6m inthree IPOs in Q313 compared to US$53.9min four IPOs in Q213.

African exchanges raised US$28.6m in oneIPO during this quarter compared toUS$95.1m in five IPOs in Q213

*Data up to 19 September 2013, 9am IST. Source: Dealogic, EY. Based on the listed companys stock exchange


20/31


*Data based on domicile of the exchange, regardless of the l isted company domicile.

Q312Q313Capital raised (US$b)

3,4

0,7

0,7

0,7

1,0

1,0

1,5

2,1

7,2

All other exchanges

Thailand (SET)

Mexican (BMV)

Deutsche Borse

Hong Kong (HKEx)

Australia (ASX)

Singapore (SGX)

NASDAQ

New York (NYSE)

4,4

1,4

1,4

1,4

1,6

1,8

2,4

6,7

8,5

All other exchanges

Shenzhen - SME board

Shanghai (SSE)

NASDAQ

Shenzhen - ChiNext (SZSE)

Hong Kong (HKEx)

Bursa Malaysia (KLSE)

New York (NYSE)

Tokyo (TSE)

Stock exchange analysis

No. of IPOs

74

8

8

9

12

13

13

15

17

22

All other exchanges

London (AIM)

Shanghai (SSE)

Indonesia (IDX)

Hong Kong (HKEx)

NASDAQ

New York (NYSE)

Shenzhen - SME board

Warsaw NewConnect

Shenzhen - Chinext (SZSE)

43

4

5

5

67

8

9

12

14

23

24

All other exchanges

Singapore (SGX)

KOSDAQ

Thailand (SET)

Australia (ASX)Singapore Catalist

Indonesia (IDX)

Bombay SME

Hong Kong (HKEx)

London (AIM)

New York (NYSE)

NASDAQ



21/31


Pricing rangeMore deals were priced above their initial pricing range during Q313compared to Q213

89% 90% 89%86%

90%

74%

95%

87% 85% 89%90% 91% 88% 89%

92%85% 83% 87% 85%

89%85% 83% 83%

1% 1%

19%

2%

3% 4%2%

3% 3% 6% 5%3%

7%6%

5%

4%

4% 9%

5%9%

10% 10% 10%14%

10% 7%3%

10% 10% 9%7% 7% 6% 6% 4%

7% 3%8%

11%7% 6%

12%8%

2%

12%

22%

32%

42%

52%

62%

72%

82%

92%

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13*

Numberofdeals

In range Above Below

*Chart shows the number of open-price IPOs with deal value above US$50m that is priced above, below or within their initial filing range.For 3% of the IPOs, this range is not applicable. Data up to 19 September 2013, 9am IST. Source: Dealogic, EY

83% of global IPOs* in 2013 were priced within their initial filing range and 9% were priced above and 8% of IPOs werepriced below their initial filing range.

171 200 111 62 43 82 160 257 261 303 279 455 269 372 253 247 182 214 162 181 132 137Totalnumber ofIPOs


22/31


Section Content

1 Q313 highlights


3 Regional analysis

4 Industry analysis


6 Pricing range



9 Appendices


23/31


$553 $552 $842 $642 $469 $507 $405

4.678

2.767

5.073 5.077

4.214

3.390

2.526

0

1.000

2.000

3.000

4.000

5.000

6.000

0

100

200

300

400

500

600

700

800

900

2007

2008

2009

2010

2011

2012

2013*

NumberofFOs

Capitalraised(US$b)

Yearly followon activity


$124 $163 $109 $157 $78 $199 $133 $142 $101 $289 $188 $265 $114 $113 $180 $235 $148 $165 $83 $73 $134 $89 $152 $131 $154 $153 $98

1.125

1.375

995

1.183

651

965

631520

628

1.3741.440

1.631

1.181 1.1311.030

1.735

1.3231.224

805 862938

712 736

1.004

870 895 761

0

400

800

1.200

1.600

2.000

0

50

100

150

200

250

300

Q1'07

Q2'07

Q3'07

Q4'07

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13*

NumberofFOs

Capitalraised

(US$b)

Quarterly followon activity

Follow-on activityFollow-on offerings constituted 76% of global equity capital markets activityin Q313 by capital raised, while IPOs represented 15%.

In Q313, there were 16 deals with capital raised aboveUS$1b 13 from developed markets and three fromemerging markets. Seven of the 20 deals were priced in July,

three deals were priced in August and 10 deals were priced inSeptember.

29% of the global number of follow on deals and 25% ofcapital raised were from emerging markets (US$24.8b via217 deals), with developed markets contributing US$ 73.3bvia 544 deals in Q313.

The top three stock exchanges by capital raised were NewYork (US$27.9b via 80 deals), NASDAQ ($8.8b via 81 deals)and London (US$6.7b via 14 deals).

The top three industries by capital raised were financials

(US$22.8b via 51 follow-on deals), industrials (US$16.6b via92 deals) and energy and power (US$10.4b via 91 deals).


24/31



Withdrawn and postponements

1%7%

1% 2% 4% 3% 4%8%

36%

19% 17%19%

24%

13%

0%

10%

20%

30%

40%

50%

2007

2008

2009

2010

2011

2012

2013*

Numberofdeals

Postponed IPOs Withdrawn IPOs

1% 1% 2%7% 5% 8%

14%8%

1% 2% 4% 1% 2% 2% 4% 5% 4% 1% 6% 2% 5% 1%6% 4%5% 7%

5% 11%

36%

21%

35%

95%

64%

33%

10% 11%12%

21%15% 17% 19%

20% 17% 23%24%

28%23% 21%

13%13% 14%

0%

10%

20%

30%40%

50%

60%

70%

80%

90%

100%

Q1'07

Q2'07

Q3'07

Q4'07

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13

%oftotaldeals

Postponed IPOs Withdrawn IPOs

There were six postponed and 23withdrawn IPOs in Q313.

Of the 29 deals:

10 were from the US, three eachfrom Australia, China, and Brazil, andtwo from Philippines.

Six PE-backed; three VC backed. Six from NASDAQ, five from New

York Stock Exchange and three fromAustralian Stock exchange.

Five were real estate issuers and foureach from industrials and technologyissuers.

Market conditions was the most popularreason for withdrawing or postponing a

listing. In comparison, there were 13 postponed

and 27 withdrawn IPOs in Q213. Q312 saw four postponed and 44

withdrawn IPOs. The proportion of postponed and

withdrawn IPOs compared to completedIPO deals was highest in 2008, at 43%,whereas the proportion was 27% in 2012and 17% in 2013*.

On a quarterly basis, the proportion of

postponed and withdrawn IPOs againstcompleted IPOs was highest in Q408 at109%.

In Q213 and Q313 so far, this ratio ofpostponed and withdrawn IPOs comparedto completed IPOs was 19% and 18%respectively.

The ratio of postponed and withdrawnIPOs in Q312 was 25%.

1,967 756 566 1,367 1,241 837 529CompletedIPOs

393 546 440 588 242 273 163 78 53 82 142 289 293 314 302 484 296 383 291 255 204 242 191 200 163 206 160

CompletedIPOs


25/31


Section Content

1 Q313 highlights


3 Regional analysis

4 Industry analysis


6 Pricing range



9 Appendices


26/31


Appendix: Key global IPO statistics

1Percentage change from 2009 to 20102 Percentage change from 2010 to 20113 Percentage change from 2011 to 2012

4Consumer products includes consumer servicesPlease see Appendix for the list of stock exchangesSource for all charts and tables shown: Dealogic, Thomson Financial, EY

2010 2011 2012 2013*

Number of deals 1367 (142%1) 1241 (9%2) 837 (33%3) 529

Capital raised (US$) $284.9b (136%1) $169.9b (40%2) $128.6b (24%3) $88.8b

Average deal size (US$) $208.3m $136.9m $153.6m $167.8m

PE-backed IPOs 155 deals, $35.0b 119 deals, $38.3b 107 deals, $19.4b 94 deals, $26.0b

VC backed IPOs 129 deals, $13.7b 142 deals, $17.3b 92deals, $23.2b 55 deals, $4.5b

Top 5 sectors(number of deals)

Materials (307)Industrial (236)Technology (180)Consumer staples (113)Energy (94)

Materials (268)Industrial (199)Technology (149)Consumer products4 (124)Energy (110)

Materials (140)Industrial (125)Technology (122)Energy (69)Consumer staples(58)

Industrial (72)Health care (69)Real estate (64)Technology (58)Financials (56)

Top 5 sectors(capital raised)

Financials ($80.0b)Industrial ($57.6b)Materials ($38.5b)Energy ($23.2b)Technology ($20.7b)

Materials ($29.2b)Industrial ($26.4b)Energy ($21.3b)Financial ($15.9b)Technology ($14.7b)

Technology ($23.5b)Financial ($19.4b)Industrials ($19.0b)Energy ($13.1b)Materials ($12.4b)

Real estate ($16.9b)Financial ($14.4b)Industrial ($11.5b)Energy ($10.4b)Health care ($8.7b)

Top 5 exchanges(number of deals)

Shenzhen SME (205)Shenzhen ChiNext (116)Australian (92)Hong Kong (87)

New York (82)

Shenzhen ChiNext (128)Warsaw New Connect (123)Shenzhen SME (115)Australian (101)

Hong Kong (68)

New York (78)Shenzhen ChiNext (74)Warsaw - NewConnect(62)Shenzhen (55)

NASDAQ (54)

NASDAQ (71)New York (70)London AIM (31)Hong Kong (27)

Australia (27)

Top 5 exchanges(capital raised)

Hong Kong ($57.4b)New York ($34.7b)Shenzhen SME ($30.2b)Shanghai ($27.9b)Tokyo ($14.3b)

New York ($30.5b)Hong Kong ($25.3b)Shenzhen SME ($15.7b)Shanghai ($15.1b)London ($13.9b)

New York ($24.0b)NASDAQ ($22.6b)Tokyo ($12.2b)Hong Kong ($11.5b)Kuala Lumpur ($7.6b)

New York ($24.1b)NASDAQ ($8.4b)Tokyo ($7.7b)Sao Paulo ($7.7b)Hong Kong ($6.0b)

*Data up to 19 September 2013, 9am IST


27/31


Appendix: Q313 top 20 IPOs by capital raised

Data up to 19 September 2013, 9am ISTSource: Dealogic, EY

Issuemonth

Issuer name Domicile Sector Issuer business descriptionCapitalraised(US$m)

Exchange(s) Type of IPO

AugustEnvision Healthcare HoldingsInc

UnitedStates

HealthcareProvider of specialist outsourcedmedical services within hospitals.

1,110.9New York(NYSE)

PE-backedIPO

July American Homes 4 RentUnitedStates

Real Estate Real estate investment trust. 811.8New York(NYSE)

August Frank's International NVUnitedStates

Energy andPower

Provider of tubular technologies fordrilling services.

759.0New York(NYSE)

JulyDeutsche AnningtonImmobilien GmbH

Germany Real Estate Property management group. 738.5DeutscheBorse

PE-backedIPO

August Z Energy LtdNewZealand

Energy andPower

Downstream oil industry operatorengaged in marketing of refinedpetroleum products to commercialand retail customers.

677.0Australia(ASX)

July NRG Yield IncUnitedStates

Energy andPower

Owns, operates and acquirescontracted renewable andconventional generation andthermal infrastructure assets.

495.2New York(NYSE)

August QEP Midstream Partners LPUnitedStates

Energy andPower

Owns, operates, and acquiresmidstream energy assets.

483.0New York(NYSE)

July OUE Hospitality Trust Singapore Real Estate Real estate investment trust. 475.9Singapore(SGX)

July SPH REIT Singapore Real Estate Real estate Investment Trust. 439.7Singapore(SGX)

July Phillips 66 Partners LPUnitedStates

Energy andPower

Oil company exploring forpetroleum and natural gas.

434.4New York(NYSE)


28/31


Appendix: Q313top 20 IPOs by capital raised (continued)

Issue month Issuer name Domicile Sector Issuer business descriptionCapitalraised(US$m)

Exchange(s) Type of IPO

July Grana y Montero SAA Peru IndustrialsEngaged in engineering andconstruction of industrial buildingsand infrastructure.

430.1New York(NYSE)

JulyTamin Petroleum &Petrochemical InvestmentCo

IranEnergy andPower

Engaged in the production ofpetroleum and petrochemicals.

419.0 Tehran

JulyCPFL EnergiasRenovaveis SA

BrazilEnergy andPower

Electric power generation company.Renewable Energy: Diversified.

410.5Sao Paulo(BM&FBOVESPA)

July Green REIT plc Ireland Real Estate REIT 404.6 Dublin

JulySprouts Farmers MarketsInc

UnitedStates

ConsumerStaples

Retail food store. 383.0 NASDAQ PE-backed IPO

JulyFideicomiso F/00854 -Fibra Shop

Mexico Real Estate Shopping centre real estate trust. 379.0Mexican(BMV)

August Athlon Energy IncUnitedStates

Energy andPower

Oil and natural gas company. 363.2New York(NYSE)

PE-backed IPO

AugustSoilbuild Business SpaceREIT

Singapore Real Estate Real estate Investment Trust. 360.9Singapore(SGX)

SeptemberControladora VuelaCompania de AviacionSAB de CV

Mexico Industrials Commercial flight airline. 346.1Mexican

(BMV)PE-backed IPO

AugustThird Point ReinsuranceLtd

Bermuda Financials Underwriter of reinsurance policies. 317.0New York(NYSE)

Total capital raised by top 20 IPOs in Q313:Total global capital raised in Q313 :% of top 20:

US$10.2bUS$18.2b

56%*Data up to 19 September 2013, 9am ISTSource: Dealogic, EY


29/31


Appendix: definitions

The data presented in the Q313 Global IPO update and press releases are from Dealogic, Thomson Reuters and EY.The Q3'13 Global IPO update covers global IPO activity from January to 19thSeptember 2013 (data up to 9am India

time). For the purposes of these reports and press releases, we focus only on IPOs of operating companies and define an

IPO as a companys first offering of equity to the public.

This report includes only those IPOs for which Dealogic, Thomson Reuters and EY offer data regarding the issuedate (the day the offer is priced and allocations are subsequently made), trading date (the date on which thesecurity first trades) and proceeds (funds raised, including any over-allotment sold). Postponed IPOs, or thosewhich have not yet been priced, are therefore excluded. Over-the-counter (OTC) listings are also excluded.

In an attempt to exclude non-operating company IPOs such as trusts, funds and special purpose acquisition

companies (SPACs), companies with the following Standard Industrial Classification (SIC) codes are excluded: 6091: Financial companies that conduct trust, fiduciary and custody activities

6371: Asset management companies such as health and welfare funds, pension funds and their third-party administration as well asother financial vehicles

6722: Companies that are open-end investment funds

6726: Companies that are other financial vehicles

6732: Companies that are grant-making foundations

6733: Asset management companies that deal with trusts, estates and agency accounts

6799: Special Purpose Acquisition Companies (SPACs)

We also applied the above SIC exclusion criteria for the follow on activity analysis. In our analysis, unless stated otherwise, IPOs are attributed to the domicile of the company undertaking an IPO. The

primary exchange on which they are listed is as defined by Dealogic, Thomson Reuters and EY research. A foreignlisting is where the stock exchange nation of the company is different from the company's domicile (i.e., issuersnation). For IPO listings on HKEx, SSE, SZE, WSE, NewConnect, TSX and TSX-V exchanges, we use their first tradingdate in place of issue date.


30/31


Appendix: definitions

Geographic definitions: Asia includes Bangladesh, Greater China, India, Indonesia, Japan, Laos, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri

Lanka, Thailand and Vietnam Greater China includes Mainland China, Hong Kong, Macau and Taiwan only

Asia Pacific includes Asia (as stated above) plus Australia, New Zealand, Fuji and Papua New Guinea

Central and South America includes Argentina, Bermuda, Brazil, Chile, Colombia, Ecuador, Jamaica, Mexico, Peru and Puerto Rico

Europe includes Armenia, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,Greece, Hungary, Iceland, Ireland, Isle of Man, Italy, Kazakhstan, Luxembourg, Lithuania, Netherlands, Norway, Poland, Portugal,Russian Federation, Spain, Sweden, Switzerland, Turkey, Ukraine and United Kingdom

Middle East includes Bahrain, Iran, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen

Africa includes Algeria, Botswana, Egypt, Ghana Kenya, Madagascar, Malawi, Morocco, Namibia, Rwanda, South Africa, Tanzania,

Tunisia, Uganda, Zambia and Zimbabwe North America consists of the United States and Canada

Emerging markets include issuers from Argentina, Armenia, Bangladesh, Bolivia, Brazil, Bulgaria, Chile, Colombia,Croatia, Cyprus, Egypt, Ethiopia, Greater China, Hungary, India, Indonesia, Ireland, Israel, Kenya, Kuwait,Kazakhstan, Laos, Lithuania, Malaysia, Mauritius, Mexico, Namibia, Pakistan, Peru, Philippines, Poland, Qatar,Russian Federation, Saudi Arabia, Sierra Leone, Singapore, Slovenia, South Africa, South Korea, Sri Lanka,Tanzania, Thailand, Tunisia, Turkey, Ukraine, United Arab Emirates, Vietnam, Zambia.

Developed markets include issuers from Australia, Austria, Belgium, Bermuda, Canada, Denmark, Finland, France,Germany, Greece, Guernsey, Isle of Man, Italy, Japan, Jersey, Luxembourg, Netherlands, New Zealand, Norway,

Portugal, Spain, Sweden, Switzerland, United Kingdom and United States.

State-owned enterprise (SOE) privatizations refers to former state-owned entities that have completed their IPOlistings to become public companies.


31/31

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About EYEY is a global leader in assurance, tax, transaction and advisory services.The insights and quality services we deliver help build trust andconfidence in the capital markets and in economies the world over. Wedevelop outstanding leaders who team to deliver our promises to all ofour stakeholders. In so doing, we play a critical role in building a better

working world for our people, for our clients and for our communities.

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About EYs IPO services

EY is a leader in helping to take companies public worldwide. Withdecades of experience our global network is dedicated to serving marketleaders and helping businesses evaluate the pros and cons of an IPO. Wedemystify the process by offering IPO readiness assessments, IPOpreparation, project management and execution services, all of whichhelp prepare you for life in the public spotlight. Our Global IPO Center ofExcellence is a virtual hub which provides access to our IPO knowledge,tools, thought leadership and contacts from around the world in oneeasy-to-use source.www.ey.com/ipocenter

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