2023-01-31-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 inflation, tightening monetary policies, geopolitical tensions, and lockdowns in Mainland China. The year saw the lowest IPO proceeds since 2016, with global IPOs raising $173bn across 1,154 deals. The US and European markets were particularly affected, with the US IPO market virtually closed and European IPO activity down almost 80% compared to 2021. The only exceptions were the energy sector and Mainland China, which saw strong performance.

Main Points

• Global Market Conditions:

  • High inflation and interest rates led to market volatility and reduced investor appetite.
  • Global indices recorded double-digit losses, with the S&P 500 down 19%, the Stoxx 600 down 13%, and the Shanghai index down 15%.
  • The energy sector was the only one to deliver positive returns, up 41% for the year.

• IPO Activity:

  • Global IPO Proceeds: Down 70% from 2021, with Mainland China and the Middle East being the only bright spots.
  • Mainland China: Raised 39% of global IPO proceeds, led by STAR Market and ChiNext, with notable return listings such as China Mobile Ltd and CNOOC Ltd.
  • Middle East: Experienced a significant IPO boom, driven by privatization strategies and government initiatives like Saudi Vision 2030 and UAE Vision.
  • Americas: IPO proceeds fell by $324bn (93%) from 2021 and $167bn (87%) from 2020, with only 93 traditional IPOs.
  • EMEA: European IPO activity was down 80%, with the Porsche AG IPO in Germany as a major exception. Other routes such as de-SPACs and spin-offs were explored.
  • Asia-Pacific: Raised over half of global IPO proceeds, with Mainland China leading at 39%, and other countries like South Korea, Hong Kong, India, and Thailand showing resilience.

• SPAC Market:

  • The SPAC boom declined significantly in 2022, with 147 SPACs raising $17bn globally, down from 676 SPACs raising $172bn in 2021.
  • The US saw 182 de-SPAC announcements, of which 101 were completed. However, many SPACs struggled to find suitable targets and faced regulatory challenges.

• IPO Performance:

  • The majority of IPOs outperformed the MSCI World Index, with Asia-Pacific (56%), Americas (55%), and EMEA (47%) showing positive performance.
  • Jinko Solar Co Ltd, listed in January 2022, saw a nearly 200% increase in share price.

• Follow-On Offerings (FOs):

  • FO proceeds were also reduced in 2022, with the US and Mainland China accounting for half of the global proceeds.
  • Notable FOs included the $6.7bn Contemporary Amperex Technology Co Ltd, $5.1bn CNOOC Ltd, and $3.5bn CITIC Securities.
  • FOs were concentrated in Finance, Computers & Electronics, and Healthcare sectors.

• Outlook for 2023:

  • Market sentiment is heavily influenced by inflation, interest rates, and recession risks.
  • A recovery in IPO activity is expected in the second half of 2023, contingent on the Fed's ability to control inflation and stabilize the macroeconomic environment.
  • A "flight to quality" is anticipated, with investors focusing on companies with strong fundamentals, profitability, and ESG alignment.
  • The Middle East is expected to continue its IPO momentum, though geopolitical instability may pose challenges.

Key Information

• Top 10 IPOs by Value:

  • LG Energy Solution Ltd (South Korea): $11bn
  • Porsche AG (Germany): $9bn
  • Life Insurance Corp of India: $5.8bn
  • Corebridge Financial Inc: $4.8bn
  • Jinko Solar Co Ltd (China): $16bn
  • Other notable IPOs include those from the Computers & Electronics, Auto/Truck, and Healthcare sectors.

• Top 10 FOs by Value:

  • Contemporary Amperex Technology Co Ltd (China): $6.7bn
  • CNOOC Ltd (China): $5.1bn
  • CITIC Securities (China): $3.5bn
  • China Tourism Group Duty Free Corp Ltd (China): $2.3bn
  • Orient Securities Co Ltd (China): $1.9bn
  • Tianqi Lithium Corp (China): $1.7bn
  • Atlas Arteria (Australia): $1.7bn
  • Xinjiang Daqo New Energy Co Ltd (China): $1.6bn
  • Industrial Securities Co Ltd (China): $1.5bn
  • Mapletree Commercial Trust (Singapore): $1.5bn

Summary of IPO and FO Trends

• IPOs by Territory:

  • Mainland China: 39% of global proceeds
  • United States: 13% of global proceeds
  • Middle East: 23% of global proceeds (UAE and Saudi Arabia were key contributors)
  • Germany: $9bn from Porsche AG IPO
  • South Korea: $11bn from LG Energy Solution Ltd

• IPOs by Sector:

  • Computers & Electronics: 23% of global proceeds
  • Auto/Truck: 13% of global proceeds
  • Finance: 13% of global proceeds (mostly SPACs)
  • Healthcare: $10bn from 45 IPOs in Mainland China
  • Utility & Energy: $7bn from 2 IPOs in the UAE

• FOs by Territory:

  • United States: $98bn from 600 FOs
  • Mainland China: $79bn from 258 FOs
  • Australia: $1.7bn from Atlas Arteria
  • Canada: $2.5bn from Bank of Montreal
  • France: $3.5bn from EDF and $2.4bn from Air France-KLM
  • Italy: $2.5bn from Monte dei Paschi and $2.0bn from Salpem SpA
  • Switzerland: $2.4bn from Credit Suisse
  • Finland: $1.9bn from Nordea Bank
  • Germany: $1.4bn from Deutsche Bank
  • UAE: $7bn from PetroRabigh and $11bn from Utility & Energy IPOs

Conclusion

2022 was a year of significant market volatility and reduced IPO activity globally, with Mainland China and the Middle East standing out as strong performers. The US and European markets remained closed, leading to a shift in focus towards other regions and alternative routes to market such as de-SPACs and spin-offs. As 2023 begins, the market is expected to open for high-quality, profitable companies, especially those aligned with ESG and energy transition goals. The success of IPOs will depend on macroeconomic stability, reduced volatility, and a return to investor confidence.