【普华永道】2022全球IPO观察_英文版__22页_3mb

Global IPO Watch Summary - 2022

Core Content

2022 was a challenging year for global IPO markets, marked by high inflation, tightening monetary policies, geopolitical tensions, and the ongoing effects of the pandemic. These factors led to a significant decline in IPO activity and valuation multiples, especially in the US and Europe. The only exceptions were the energy sector and Mainland China, which saw positive performance. The year also witnessed a decline in follow-on equity (FO) issuance across all regions.

Main Points

Global IPO Market Performance

• Global IPO proceeds in 2022 were the lowest since 2016, totaling $173bn from 1,154 deals.
• Mainland China emerged as the largest IPO market, accounting for 39% of global proceeds ($68bn), surpassing the US for the first time since 2010.
• Asia-Pacific took the lead in IPO proceeds, with $108bn from 802 IPOs, marking the first time since 2018 that it outperformed the Americas.
• US IPO market was virtually closed, with only 93 traditional IPOs, of which 19 raised over $100m.
• Europe saw a 79% decline in IPO proceeds, with the exception of the Porsche AG IPO, which accounted for two-thirds of European IPO activity.
• Middle East was a notable bright spot, with significant privatisation initiatives and a surge in IPO activity, particularly in the UAE and Saudi Arabia.

IPO by Sector

• Computers & Electronics accounted for 23% of global IPO proceeds, largely driven by Mainland China.
• Auto/Truck was the second-largest sector, with $23bn in proceeds, also heavily influenced by Mainland China and Porsche AG.
• Healthcare and Utility & Energy sectors also showed strong performance in IPO activity.

Top IPOs of 2022

• Jinko Solar Co Ltd (Mainland China) raised $16bn and saw a nearly 200% share price increase post-IPO.
• LG Energy Solution Ltd (South Korea) and Porsche AG (Germany) were among the largest IPOs, contributing significantly to regional performance.
• Asia-Pacific had the highest IPO performance relative to the MSCI World Index (56%), followed by the Americas (55%) and EMEA (47%).

Follow-on Equity (FO) Activity

• Global FO proceeds in 2022 were lower than the previous ten years, with the US and Mainland China accounting for half of the total.
• US FO proceeds reached $98bn from 600 deals, while Mainland China raised $79bn from 258 FOs.
• FO activity was most prevalent in the Finance, Computers & Electronics, and Healthcare sectors.
• Top FOs included Contemporary Amperex Technology Co Ltd ($6.7bn), CNOOC Ltd ($5.1bn), and Electricite de France SA ($3.5bn).

Outlook for 2023

Market Drivers

• The health of the 2023 IPO market will depend on the Fed's ability to control inflation and the potential for a mild recession.
• A flight to quality is expected, with investors focusing on companies with strong fundamentals, profitability, and clear ESG narratives.

IPO Trends

• Profitability and a clear path to profitability will be key factors for IPO success in 2023.
• Mainland China is expected to maintain its growth in IPO activity, driven by its domestic market and new economy companies.
• Energy transition and corporate demergers/spin-offs are likely to be focal areas for future IPOs in the US and Europe.

FO Trends

• FO issuance will resume as macroeconomic conditions stabilize, with a focus on discount narrowing and improved market confidence.
• High-cost debt and structured equity are expected to gain traction as alternative financing tools.

Key Observations

• The SPAC boom declined significantly in 2022, with SPAC IPO proceeds dropping to $17bn from $172bn in 2021.
• The Porsche IPO was a landmark event in Europe, contributing to a significant portion of the region's IPO activity.
• The Middle East continues to develop as an IPO hub, with strong government-led privatisation and growing investor confidence.
• Regulatory changes in the US, such as the SEC's approval of direct listing reforms, are expected to provide new avenues for capital raising.

Summary of Regional Highlights

Conclusion

2022 was a year of turbulence for global IPO and FO markets, with Mainland China and the Middle East being the only bright spots. As we look to 2023, the focus will shift towards quality over growth, with Mainland China expected to maintain its dominance, and western markets likely to open up in the second half of the year if macroeconomic conditions improve.