Statistics
Initial Public Offerings For TMT Sector Recover In China - PwC
Gyrations in mainland Chinese markets affected volumes of IPOs in the region, PwC said in an analysis of regional and global trends in such liquidity events.
The number of Chinese technology, media and telecommunications initial public offerings slid in the third quarter of 2015 before picking up again in the fourth, with the suspension and subsequent resumption of A-shares. Over the period, China reported 14 TMT IPOs, one-third of the total number recorded in the first half of 2015, garnering RMB15.5 billion ($2.38 billion) in proceeds, figures show.
In the second half of 2015, the Main Board, Shenzhen GEM and overseas markets each accounted for 29 per cent of TMT IPO listings, PricewaterhouseCoopers said. The remaining 13 per cent listed on the Shenzhen SME. Among the listings, four were cross-border IPOs, with a value of RMB10.6 billion, making up 69 per cent of the overall amount raised in the period.
The Main Board had four IPOs, which raised RMB2.8 billion, representing 18 per cent of the total value. There were also four IPOs and RMB1.5 billion raised in the Shenzhen GEM, comprising 10 per cent of the total value.
IPOs, along with trade sales of companies and the exercise of equity options, are key liquidity events which wealth managers need to track to find new clients. In September 2014, a Chinese e-commerce giant claimed the title of the world’s largest IPO when it floated on the New York Stock Exchange, raising $25 billion.
“During the second half of 2015, the freeze and subsequent resumption of IPOs led to fewer TMT IPOs than in the first half. As a result of the resumption, IPO activity in 2016 is expected to improve. The TMT companies that had previously listed abroad will be less inclined to go private. In the short term there will be fewer Chinese companies listing abroad,” said Wilson Chow, China/Hong Kong TMT leader at PwC China.
The second half of 2015 also saw fewer technology offerings globally. Over the period there were 33 IPOs, garnering $14.9 billion in proceeds, according to PwC's Global Technology IPO Quarterly Review (applying to deals valued at or above $40 million).
And while the number of IPOs declined 69 per cent from the second quarter to the third, the fourth quarter closed on a high note, with a 100 per cent increase from third quarter figures.
