2017年-普华永道中国_全球科技行业IPO回顾_2017年第一季度_50页_506kb

Global Technology IPO Review - Q1 2017 Summary

Core Content

In Q1 2017, the global technology IPO market showed a strong resurgence after a difficult 2016. A total of 18 technology companies raised US$5.8 billion, marking the highest amount in the last five quarters. This represents a 234% sequential growth and a 655% year-on-year increase in total proceeds, along with an 80% rise in the number of listings.

The Internet Software & Services subsector led the market, contributing US$4.4 billion in proceeds, with Snap Inc being the standout, raising US$3.9 billion and becoming the third-largest tech IPO in the last seven years. The Communications Equipment and Semiconductors subsectors also saw significant growth, especially due to the participation of Chinese companies.

Key Points

• Snap Inc was the largest IPO of the quarter, raising US$3.9 billion, and is the largest tech IPO since Alibaba in 2014.
• China had the most active IPO market in Q1 2017, with 12 tech IPOs raising US$1.2 billion, contributing 78% of global offerings.
• US had 4 tech IPOs raising US$4.5 billion, with Snap and MuleSoft as the two Unicorns.
• Japan had 2 tech IPOs, showing a steady and positive outlook for its tech sector.
• Europe and the UK were less active due to Brexit uncertainty and political instability in several countries, though the market is expected to rebound after elections and improved understanding of Brexit's impact.
• Geographic concentration was notable, with Asia-Pacific and the US dominating the IPO activity, while Europe had no tech IPOs.

Subsector Performance

• Internet Software & Services:

  • 5 IPOs with US$4.4 billion in proceeds.
  • 380% sequential growth and 1,470% year-on-year increase in proceeds.
  • US$204 million average LTM revenue, US$92 million average LTM EBITDA (negative), and US$92 million average net loss.
  • EV/LTM revenue increased to 27.9x, a significant jump from 9.7x in Q4 2016.

• Communications Equipment:

  • 4 IPOs with US$426 million in proceeds.
  • 300% increase in the number of IPOs, with 34% sequential decline and 62% year-on-year decline in revenue.
  • US$77 million average LTM revenue, US$24 million average LTM EBITDA, and US$25 million average net income.
  • EV/LTM revenue rose to 19x, up from 7.0x in Q4 2016.

• Semiconductors:

  • 3 IPOs with US$345 million in proceeds.
  • 271% sequential growth and 176% year-on-year increase in proceeds.
  • US$181 million average LTM revenue, US$49 million average LTM EBITDA, and US$36 million average net income.
  • EV/LTM revenue increased to 8.9x, while EV/LTM EBITDA dropped to 33.1x from 77.7x in Q4 2016.

Key Financials

• Average LTM revenue across all 18 tech IPOs was US$356 million.
• Only 4 companies reported losses, with Snap having the largest loss at US$515 million.
• 78% of companies reported net income, a significant shift from the 80% loss rate in Q4 2016.
• Average total debt decreased by 61% to US$11 million.
• Average enterprise value increased to US$5.7 billion for the Internet Software & Services subsector.

Key Insights

• The positive economic outlook in 2017 boosted investor confidence, especially in the US and Asia-Pacific.
• China emerged as a major driver of tech IPOs, with a favorable domestic market and regulatory support.
• Political uncertainty in Europe and the UK limited IPO activity, but the region is expected to recover post-elections.
• VC-backed IPOs were prevalent, with 10 out of 18 tech IPOs being VC-backed.
• The absence of cross-border IPOs reflected the strong performance of the Chinese market, where companies preferred domestic listings to avoid additional costs.

Outlook

• The technology IPO market is expected to continue benefiting from the improved economic sentiment in 2017.
• Europe may see a resurgence in tech IPO activity by Q3/Q4 2017.
• China is projected to see a record number of tech IPOs in 2017 due to the CSRC's faster approval process.
• Snap's success is a key indicator of the potential for high-valuation tech IPOs in the coming quarters.