global technology ip os q1 2010

*connectedthinking

Global Technology

IPO Review

Q1 2010

PwC

IPO Summary – Q1 2010

Source: Thomson Reuters

• Global IPO activity in the first quarter of 2010

showed substantial improvement over Q1 2009.

Results were driven by an ongoing robust Asian

market.

• In the technology space, semiconductors

dominated the number of IPO deals in the first

quarter of 2010.

• China Merchant Securities was the leading

underwriter in the technology segment.

• Shenzhen Stock Exchange led the technology

sector with 23 IPO issues.

• Sensata Technologies was the largest technology

IPO in Q1 2010 with an issue size of $569 million.

Highlights

Company Industry

Issue Size

($M)

Primary

Exchange

Sensata Technologies

Process Control

Instruments 569.00 NYSE

Zhejiang Chint Electrics Semiconductors 368.83 Shanghai

Promethean World Software 279.77 London

East Money Information

IT Consulting &

Services 208.07 Shenzhen

SS&C Technologies Software 161.00 Nasdaq

Dingli Communications

IT Consulting &

Services 180.49 Shenzhen

Hanwang Tech Software 165.70 Shenzhen

Hiconics Drive Tech Semiconductors 150.14 Shenzhen

Shenzhen ZQ Network

Technology Software 109.86 Shenzhen

Shenzhen Haoningda

Electronic Semiconductors 106.93 Shenzhen

Top 10 IPOs

PricewaterhouseCoopers

Period Company Sector

Proceeds

($ M)

Primary

Exchange

Domicile

Nation Lead Underwriter

03/17/2010

Nanjing Keyuan

Automatic Corp

IT Consulting &

Services 97.13 Shenzhen China Guangfa Huafu Securities

03/05/2010

East Money

Information

IT Consulting &

Services 208.07 Shenzhen China China International Capital

03/05/2010

Fujian CEE

Installations Semiconductors 70.85 Shenzhen China Hongta Securities

03/05/2010

Suzhou Goldengreen

Tech Semiconductors 60.94 Shenzhen China GF Securities

03/04/2010 SureKAM High-Tech

IT Consulting &

Services 71.79 Shenzhen China China Dragon Securities

03/01/2010

Beijing Sevenstar

Electro Semiconductors 80.06 Shenzhen China China Securities

03/01/2010

Shenzhen Zowee

Tech

IT Consulting &

Services 82.70 Shenzhen China Shenyin Wanguo

02/26/2010 Taiji Computer

Internet

Software &

Services 106.22 Shenzhen China China Merchant Securities

02/11/2010

Hangzhou

Zhongheng Electric Semiconductors 54.99 Shenzhen China Huatai United Securities

02/05/2010 Hanwang Tech Software 165.70 Shenzhen China Zhong De Securities

01/29/2010

Shenzhen ZQ

Network Technology Software 109.86 Shenzhen China Not Applicable

01/29/2010

Xiamen 35.com

Technology Co Ltd

IT Consulting &

Services 67.24 Shenzhen China China Merchant Securities


Technology IPOs – Q1 2010

Region: AsiaPac (Shenzhen, Shanghai, Hong Kong, Taiwan)



Proceeds

($ M)

Primary

Exchange

Domicile


01/28/2010

Henan Senyuan

Electric Semiconductors 83.79 Shenzhen China Huatai Securities

01/25/2010

Shenzhen Haoningda

Electronic Semiconductors 106.93 Shenzhen China China Merchant Securities

01/18/2010 Beijing CREAT Semiconductors 94.93 Shenzhen China Pingan Securities

01/14/2010

Anhui Taier heavy

Industry Semiconductors 85.70 Shenzhen China Huatai Securities

01/12/2010

Zhejiang Chint

Electrics Semiconductors 368.83 Shanghai China Guotai Junan Securities

01/07/2010 iESLab Software 80.57 Shenzhen China Haitong Securities

01/05/2010

Dingli

Communications

IT Consulting &

Services 180.49 Shenzhen China Pingan Securities

01/05/2010 Hiconics Drive Tech Semiconductors 150.14 Shenzhen China CITIC Securities

01/05/2010

Hubei Tech

Semiconductor Semiconductors 90.76 Shenzhen China Jinyuan Securities

01/05/2010 Hwa Create Corp

IT Consulting &

Services 76.46 Shenzhen China Hongyuan Securities

01/05/2010

Shenzhen Sunwin

Electronics Semiconductors 64.46 Shenzhen China China Merchant Securities

01/05/2010

Shenzhen Tianyuan

DIC Info Software 118.67 Shenzhen China China Merchant Securities


Region: AsiaPac (Shenzhen, Shanghai, Hong Kong, Taiwan)




Proceeds

($ M)

Primary

Exchange

Domicile


03/11/2010

Promethean World

PLC Software 279.77 London UK

Goldman Sachs

International

JP Morgan Cazenove



Region: EMEA (London and Frankfurt)



Proceeds

($ M)

Primary

Exchange

Domicile

Nation Lead Underwriter(s)

03/31/2010 SS&C Technologies Software 161.00 Nasdaq United States

Morgan Stanley, Credit

Suisse, JPMorgan,

Deutsche Bank Securities

03/30/2010 Meru Networks

Computers &

Peripherals 75.67 Nasdaq United States Merrill Lynch

03/23/2010 MaxLinear Semiconductors 103.75 NYSE United States

Morgan Stanley

Deutsche Bank Securities

03/10/2010 Sensata Technologies

Process Control

Instruments 569.00 NYSE Netherlands*

Morgan Stanley, Barclays

Capital


*Sensata Technologies is domiciled in the Netherlands but raised capital on the NYSE.

Region: US (NYSE and NASDAQ)



Offering details - Top 5

IPO Description Rationale Company Description

Sensata Technologies

Issue Size: $569 million

Country: Netherlands

Underwriters: Morgan Stanley, Barclays

Capital, Goldman Sachs, BofA, Merrill

Lynch, JPMorgan, Citi and Credit Suisse

Industry: Software

Proceeds from the offering to be used to

pay down debt and for general corporate

purposes.

Sensata Technologies Holding is a global

industrial technology company engaged in

the development, manufacture and sale of

sensors and controls. The Company

produces a range of customized sensors

and controls for applications, such as

thermal circuit breakers in aircraft, pressure

sensors in automotive systems, and bimetal

current and temperature control devices in

electric motors.

Zhejiang Chint Electrics Co. Ltd

Issue Size: $369.4 million

Country: China

Underwriter: Guotai Junan Securities

Industry: Semiconductors

Proceeds to fund two electric appliance

manufacturing projects.

Chint is currently the leading player in the

Low-voltage electrical and Power

Transmission and Distribution industries in

China.

Promethean World


Country: UK

Underwriter: Goldman Sachs, JP Morgan

Industry: Software

Proceeds to drive Promethean’s expansion

which may include acquisitions.

Promethean World is a developer of

technology solutions for kindergarten,

primary and secondary education. More than

860 people comprise Promethean's global

family, working in 15 offices around the

world. Promethean’s ActivClassroom

technology is today helping educate over 12

million individuals in over 500,000

classrooms in some 100 countries.



Offering details – Top 5, continued

IPO Description Rationale Company Description

East Money Information


Country: China

Underwriter: China International Capital

Industry: IT Consulting

Proceeds to be used to upgrade financial

data terminal products, form a wireless

network platform, and promote wireless

mobile terminals.

EastMoney.com, owned by East Money

Information Co Ltd, is an online information

platform providing professional business and

financial news.

SS&C Technologies Holdings


Country: US

Underwriter: Morgan Stanley, Credit

Suisse, JP Morgan, Deutsche Bank

Industry: Software

Proceeds to be used to pay off debt from

2005 company privatization.

SS&C Technologies provides the global

financial services industry with a broad

range of highly specialized software,

software enabled-services and software as a

service (SaaS) solutions for operational

excellence.



Geographic distribution*

China 24

UK 1

Netherlands 1

US 3

Total 29


China led all markets in terms of new issues for the third consecutive quarter. Of the 29 technology

companies that went public in Q1 2010, 24 were from China.

0

500

1000

1500

2000

2500

3000

China UK US Netherlands

In U

SD M

illio

n

0

5

10

15

20

25

30

No

of

IPO

s

24

13

1

* IPO is credited to the country where the company is headquartered, not the location of the

exchange.

Number of IPOs [blue line]Bar = proceeds in $M



Sector distribution

Computers &

Peripherals1

Internet Software &

Services1

IT Consulting &

Services7

Semiconductors 13

Process Control

Instruments1

Software 6

Total 29


0

200

400

600

800

1000

1200

1400

1600

Co

mp

ute

rs &P

erip

he

rals

Inte

rne

tS

oftw

are

&S

erv

ices

Se

mico

nd

ucto

rs

IT C

on

sultin

g &

Se

rvice

s

So

ftwa

re

Pro

cess C

on

trol

Instru

me

nts

In U

SD M

illi

on

0

2

4

6

8

10

12

14

No

of

IPO

s

11

13

76

Semiconductors raised the most capital - $1.4 billion - and had the highest number of offerings.

1

Bar = proceeds in $M

Number of IPOs [blue line]



Stock exchange distribution

Shenzhen 23

Shanghai 1

London 1

Nasdaq 2

NYSE 2

Total 29


0

500

1000

1500

2000

2500

Shenzhen London Nasdaq NYSE Shanghai

In U

SD M

illio

n

0

5

10

15

20

25

No

of

IPO

s

23

1 2

Shenzhen stock exchange led technology IPOs; 50% of the new issues were semiconductor

companies.

2

1

2

Bar = proceeds in $MNumber of IPOs [blue line]



China Merchant Sec’s 5

Huatai Securities 3

Pingan Securities 2

Morgan Stanley 1.25

Merrill Lynch 1

Others (1 each - China) 14

Deutsche Bank 0.75

JP Morgan 0.75

Barclays Capital 0.50

Goldman Sachs 0.50

Credit Suisse 0.25

Total 29

Lead underwriter(% of total IPOs)


Number of IPOs*



Goldman Sachs2%

JP Morgan

2%Credit Suisse

1%

China Merchant Securities

18%

Huatai Securities

11%

Pingan Securities

7%

Others(All China)

50%

Morgan Stanley

4%

Deutsche Bank3%

Barclays Capital

2%

* Fractional IPOs result from multiple underwriters.

Technology industry leaders

Raman Chitkara

Global Technology Leader (US)

Phone: 1 408 817 3746

Email: [email protected]

Rod Dring – Australia

Phone: 61 2 8266-7865


Estela Vieira – Brazil

Phone: 55 1 3674-3802


Alison Wong – China

Phone: 86 21 2323 2551


Slide 13

Werner Ballhaus – Germany

Phone: 49 211 981 5848


Xavier Cauchois – France

Phone: 33 1 5657 10 33


Hari Rajagopalachari – India

Phone: 91 80 4079 002


Akihiko Nakamura – Japan

Phone: 81 80 3158 6693


Yong-Won Kim – Korea

Phone: 82 2 709 0471


Marcel Jakobsen – Netherlands

Phone: 31 8879 23805


Natalia Milchakova – Russia

Phone: 7 495 967 6240


Greg Unsworth – Singapore

Phone: 65 6236 3738


Douglas Mahony – UAE

Phone: 97 4 3043100 ext. 151


Barry Murphy – UK

Phone: 44 20 7804 5284


Rob Gittings – US

Phone: 1 408 817 3730



PwC© 2010 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to

PricewaterhouseCoopers LLP, a Delaware limited liability partnership, or, as the context requires, the

PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and

independent legal entity.

Slide 14

global technology ip os q1 2010

Business

shenzhenchina zhong

technology ipos q1

shenzhen source

shenzhen sensata technologies

technology space

technology software109

technology segment

asiapac shenzhen