ipo watch europe q3 2017 - pwcipo watch europe q3 2017 | 5 3.3 5.4 3.0 14.8 11.4 22.3 6.6 9.2 16.4...

IPO WatchEurope Q3 2017

www.pwc.co.uk/ipowatch

€8.2bnraised in Q3 2017

(Q3 2016: €3.8bn, 116% increase)

74 IPOsin Q3 2017 across Europe

(Q3 2016: 52 IPOs, 42% increase)

€28.3bnIPO Proceeds raised in YTD 2017

(YTD 2016:€18.2bn, 55% increase)

2 | IPO Watch Europe Q3 2017

Source: Dealogic and Stock Exchanges

3IPO Watch Europe Q3 2017 |

European IPO trends 4

Market volatility 6

Pricing of top 5 IPOs 7

European PE trends 7

The sector story 8

London focus

Overview 9

Relative performance of London IPOs 10

Global perspective 11

Appendix 12

Contacts 16

Contents

Outlook for 2017

“We have seen European IPOs gathering momentum this year with moneyraised to date already above the €27.9bn raised in the whole of 2016. Theyear is set to finish on a high note with a number of high profile large IPOsset to launch in the coming weeks. However, with a number of companiesundertaking dual-track processes, inevitably some of these companies mayopt for a private sale process given the attractive valuations on offer.”

Mark HughesPartner, UK Capital Markets Leader at PwC


European IPO trendsThe London Stock Exchange is the most active in terms ofvolume and the largest contributor to European IPO values,representing 33% of all European IPO proceeds raised

Note: Excludes greenshoe.

Figure 1: Top 3 stock exchanges in Europe in Q3 2017 (by offering value)



3.3 5.4 3.0 14.8 11.4 22.3 6.6 9.2 16.4 14.7 4.6 21.7 3.5 10.9 3.8 9.6 4.5 15.6 8.2

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European IPO trendsQ3 2017 European IPO values and volumes have increased onQ3 2016, when activity was dampened following the UK’s voteto leave the EU

Figure 2: European IPO activity since 2007 (YTD and full year)*

Figure 3: Quarterly European IPO activity since 2013

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**Excludes greenshoe.Note: Excludes IPOs on Borsa Istanbul, Zagreb Stock Exchange and Bucharest Stock Exchange pre 2011

2013 2014 2015 2017

28.3

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27.9

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YTD value €bn FY value €bn YTD IPOs

2016



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DAX 30

FTSE 100

CAC 40

IBEX 35

SepAugJul

Market volatilityMarket volatility remains at low levels, while Europeanindices remain stable

Figure 4: Volatility tracked against European IPO values

Source: Thomson Reuters as at 29 September 2017

Figure 5: Historical performance of major European market indices since January 2016

EUreferendumin the UK

USpresidential

election

Triggeringof Article 50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2016 2017

2016 2017

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€1bn+ IPOof DongEnergy

€1bn+IPOs ofinnogy SEandConvaTec

€1bn+ IPOsof Allied IrishBank plc andALD SA

€1bn+ IPOof GalenicaSante AG

UK Generalelection

€1bn+ IPO ofLandis & GyrHolding AG

Falling oil prices,Chinese economy

slowdown and threat ofimpending bear market

FrenchPresidential

election


Pricing of top 5 IPOsThe Play Communications IPO represents the largestPolish IPO by a private company and is the largestEuropean telecoms IPO since 2012

Figure 6: Top 5 European IPOs in Q3 2017

Landis & GyrHolding AG

PlayCommunications

SA

SherborneInvestors

(Guernsey) CLtd

PJSC PolyusRovio

EntertainmentLtd

ExchangeSIX SwissExchange

Warsaw London London Nasdaq Nordic

IPO date 21 July 27 July 12 July 5 July 29 September

Money raised (€m) 2,080 1,041 797 484 425

Price rangeSFR70.00 –SFR82.00

PLN34.00 -PLN44.00

£1.00 $33.25 - $35.30 €10.25 - €11.50

Offer price SFR78.00 PLN36.00 £1.00 $33.25 €11.50

Figure 7: Quarterly value and volume of European PE backed IPOs since 2013

European PE trendsThe volume and value of PE backed IPOs remains subduedwith a number of deals opting for private sale processes

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1.13.7

1.25.8 5.2 13.7 1.8 1.8 9.5 5.5 1.8 8.1 1.6 6.4 2.7 3.0

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2013 2014 2015 2016 2017



The sector storyIndustrials and financials represent the largest sectors in thequarter. The industrials sector has been supported by themega-IPO* of Landis & Gyr, while the financials sector hasbeen supported by a number of real estate IPOs in London

*Mega-IPOs are those raising in excess of €1bn**Excludes greenshoe

Figure 8: European IPO values by sector**

Industrials

12 IPOs raised€2.95bn**

Largest IPO:Landis & Gyr Holding AG

€2.1bn

Telecommunications

1 IPO raised€1.0bn**

Largest IPO:Play Communications

SA€1.0bn

Financials

32 IPOs raised€2.99bn**

Largest IPO:Sherborne Investors

(Guernsey) C Ltd€797m

By offering value (€m) Q1 2017 Q2 2017 Q3 2017 YTD 2017 YTD 2016 Variance vs YTD2016

Financials 1,072 5,217 2,985 9,274 6,940 2,334

Industrials 1,192 3,244 2,951 7,387 2,959 4,428

Telecommunications - 11 1,041 1,052 10 1,042

Technology 1,465 1,246 541 3,252 170 3,082

Consumer Services 4 3,798 397 4,199 3,372 827

Consumer Goods 122 1,435 206 1,763 1,581 182

Health Care 514 404 52 970 435 535

Oil & Gas 61 227 3 291 128 163

Basic Materials 128 8 1 137 33 104

Utilities - - - - 2,613 (2,613)

Total 4,558 15,590 8,177 28,325 18,241 10,084



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London focus – overviewContinuing the trend experienced in H1 2017, the financialssector continues to dominate London IPOs, representing 60%of London IPO values

Figure 9: London IPO trends (by offering value)* Figure 10: London IPO trends (by volume)

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Figure 11: Top 5 London IPOs in Q3 2017

*Excludes greenshoe

Note: Ranking in £ sterling may be different from ranking in Euros due to exchange rate

Figure 12: London IPO value by sector*

£6.3bn£14.5bn £7.3bn

YTD17

YTD14

YTD15

£3.0bn

YTD16

2014 2015 2016 2017

71109 64

YTD17

YTD14

YTD15

48

YTD16

2014 2015 2016 2017

Issuer Value (£m)* Sector Market PE backed

Sherborne Investors (Guernsey) C Ltd 700 Financials Main No

PJSC Polyus 551 Industrials Main No

Triple Point Social Housing REIT plc 200 Financials Main No

Strix Group plc 190 Industrials AIM Yes

Residential Secure Income plc 180 Financials Main No

By offering value (£m) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Variance vs.Q3 2016

Financials 40 618 784 653 1,504 1,464

Industrials - 352 180 580 788 -

Consumer Services 188 - - 175 172 (16)

Health Care 2 1,524 121 5 15 13

Technology 9 23 611 269 9 -

Oil & Gas - 3 52 243 3 -

Basic Materials - - 7 7 1 -

Consumer Goods 27 23 53 37 - (27)

Total value 266 2,543 1,808 1,969 2,492 2,226



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Strix Group PLC

GYG PLC

Angling Direct PLC

Fandango Holdings PLC

Baskerville Capital PLC

Polyus PAO

Xpediator PLC

Arena Events Group PLC

Tatton Asset Management PLC

Wilmcote Holdings PLC

QUIZ PLC

Stapleton Capital Plc

Appscatter Group PLC

Chesterfield Resources PLC

Sherborne Investors (Guernsey) C Ltd

Triple Point Social Housing REIT PLC

Gabelli Merger Plus+ Trust PLC

Warehouse REIT PLC

Supermarket Income REIT PLC

Destiny Pharma PLC

Altus Strategies PLC

Residential Secure Income PLC

Myanmar Strategic Holdings Ltd

Nexus Infrastructure PLC

GetBusy PLC

Verditek PLC

Rockpool Acquisitions PLC

London focus – relative performance ofLondon IPOs78% of London IPOs have out-performed the FTSE all shareindex

Figure 13: Share price performance of London IPOs relative to the FTSE all share index, from IPO to 29 September 2017 (%)

Note: Relative performance based on the FTSE All Share Index for Main Market listed companies and FTSE AIM All Share index for AIM quoted companiesSource: Thomson Reuters as of 29 September 2017

6companies haveunderperformed

the index

21companies haveoutperformed

the index

Main Market

AIM

“London bounced back from the disappointing performance in Q3 2016 which was affected by theuncertainty and volatility arising from the UK’s EU referendum outcome. Q3 2017 was London’smost active third quarter by volume since 2011 when 29 IPOs raised €1.1bn. Looking ahead, thepipeline looks promising for London IPOs, which includes a number of international companies.If favourable conditions continue, Q4 should deliver a strong end to the year.”

Lucy TarletonDirector, UK Capital Markets Group at PwC


Global perspectiveGlobal IPO values are down on Q3 2016, as a result of adecrease in Asia Pacific IPOs

Figure 14: Global IPO activity*

271

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* Excludes greenshoeSource: Dealogic

Figure 15: Top 10 global IPOs YTD 2017

2014 2015 2016 2017

Date Issuer Value (€m)* Exchange Sector

Jun-17 Allied Irish Banks PLC 2,986 Irish Stock Exchange Finance

May-17 Netmarble Games Corp 2,176 Korea Computer & Electronics

Jul-17 Landis & Gyr Holding AG 2,080 SIX Swiss Industrials

Jun-17 Altice USA Inc 1,721 NYSE Telecommunications

Apr-17 Galenica Sante AG 1,544 SIX Swiss Healthcare

Jul-17 Netlink NBN Trust 1,489 Singapore Telecommunications

Feb-17 Invitation Homes Inc 1,439 NYSE Finance

Sep-17 ZhongAn Online P & C Insurance Co Ltd 1,273 Hong Kong Insurance

Jul-17 Atacadao SA 1,217 BM&FBOVESPA Consumer Services

May-17 Kinder Morgan Canada Ltd 1,159 Toronto Oil & Gas


*Excludes greenshoe

Appendix – Exchange activity by value

Appendix 1: IPO offering value by stock exchange*

Stock exchange offering value (€m) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

London Stock Exchange Group 1,086 2,985 2,254 2,613 3,557

London Stock Exchange 311 2,882 2,115 2,223 2,672

Borsa Italiana 775 103 139 390 885

SIX Swiss Exchange - 100 - 1,544 2,280

Warsaw 4 147 1 542 1,227

Nasdaq Nordic 2,196 1,418 406 1,578 532

Nasdaq Helsinki - 427 30 198 425

Nasdaq Stockholm 83 953 376 1,365 107

Nasdaq Copenhagen 2,113 - - 12 -

Nasdaq Iceland - 38 - - -

Nasdaq Tallinn - - - - -

Nasdaq Riga - - - - -

Nasdaq Vilnius - - - 3 -

Irish Stock Exchange - - - 2,986 270

Deutsche Börse 72 4,645 235 1,049 204

Budapest - 9 - - 73

Oslo Børs & Oslo Axess 12 185 7 821 29

Euronext 406 60 183 2,437 5

Euronext Paris 78 60 80 1,258 5

Euronext Amsterdam 328 - 103 575 -

Euronext Brussels - - - 604 -

Euronext Lisbon - - - - -

BME (Spanish Exchange) 8 16 1,459 1,563 -

Borsa Istanbul - - 13 265 -

Bucharest Stock Exchange - 51 - 192 -

Luxembourg 48 - - - -

Wiener Börse - - - - -

Sofia - 31 - - -

Total 3,832 9,647 4,558 15,590 8,177



Appendix – Exchange activity by volume

Appendix 2: IPO volume by stock exchange

Stock exchange Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

London Stock Exchange Group 14 21 23 30 36

London Stock Exchange 9 19 20 24 27

Borsa Italiana 5 2 3 6 9

Nasdaq Nordic 9 24 13 41 11

Nasdaq Copenhagen 1 - - 2 -

Nasdaq Stockholm 7 20 12 34 9

Nasdaq Helsinki - 3 1 4 1

Nasdaq Iceland - 1 - - 1

Nasdaq Tallinn - - - - -

Nasdaq Riga 1 - - - -

Nasdaq Vilnius - - - 1 -

Warsaw 5 7 2 6 9

BME (Spanish Exchange) 10 4 6 4 8

Deutsche Börse 4 2 2 3 3

Euronext 5 4 5 8 2

Euronext Amsterdam 1 - 1 1 1

Euronext Paris 4 4 4 5 1

Euronext Brussels - - - 2 -

Euronext Lisbon - - - - -

SIX Swiss Exchange - 1 - 2 2

Oslo Børs & Oslo Axess 1 1 1 4 1

Irish Stock Exchange - - - 1 1

Budapest - 1 - - 1

Borsa Istanbul - - 1 2 -

Bucharest Stock Exchange 1 1 - 2 -

Luxembourg 2 - - - -

Wiener Börse 1 - - -

Sofia - 2 - - -

Total 52 68 53 103 74



Appendix – IPOs by market

* Excludes greenshoe

Appendix 3: European IPOs by market

Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Stock exchange IPOs Value (€m)* IPOs Value (€m)* IPOs Value (€m)* IPOs Value (€m)* IPOs Value (€m)*

EU-REGULATED

SIX Swiss Exchange - - 1 100 - - 2 1,544 2 2,280

London Main 3 249 9 2,652 15 1,998 13 1,543 12 1,915

Warsaw (Main) - - 6 147 1 1 3 518 2 1,215

Nasdaq Nordic (Main) 3 2,167 9 1,234 - - 3 51 1 425

Borsa Italiana (Main) 1 759 - - 1 130 2 282 1 312

Irish Stock Exchange (Main) - - - - - - 1 2,986 1 270

Deutsche Börse (Prime and General Standard) 2 72 2 4,645 2 235 3 1,049 2 201

Budapest - - 1 9 - - - - 1 73

Oslo Børs - - 1 185 - - 4 821 1 29

Euronext 2 368 2 48 4 183 7 2,426 2 5

BME (Spanish Exchange) (Main) - - - - 2 1,459 2 1,558 - -

Bucharest - - 1 51 - - 2 192 - -

Wiener Börse - - - - - - - - - -

Sofia - - 2 31 - - - - - -

EU-regulated sub-total 11 3,615 34 9,102 25 4,006 42 12,970 25 6,725

EXCHANGE-REGULATED

London AIM 6 62 10 230 5 117 11 680 15 757

Borsa Italiana (AIM) 4 16 2 103 2 9 4 108 8 573

Nasdaq Nordic (First North) 6 29 15 184 13 406 38 1,527 10 107

Warsaw (NewConnect) 5 4 1 - 1 - 3 24 7 12

Deutsche Börse (Scale) 2 - - - - - - - 1 3

BME (Spanish Exchange) (MAB) 10 8 4 16 4 - 2 5 8 -

Borsa Istanbul - - - - 1 13 2 265 - -

Euronext (Alternext) 3 38 2 12 1 - 1 11 - -

Luxembourg (MTF) 2 48 - - - - - - - -

Oslo Axess 1 12 - - 1 7 - - - -

Bucharest (AeRO) 1 - - - - - - - - -

Wiener Börsen (MTF) 1 - - - - - - - - -

Exchange-regulated sub-total 41 217 34 545 28 552 61 2,620 49 1,452

Europe total 52 3,832 68 9,647 53 4,558 103 15,590 74 8,177



IPO Watch Europe surveys all new primary market equity IPOs on Europe’s principalstock markets and market segments (including exchanges in Austria, Belgium,Croatia, Denmark, France, Germany, Greece, the Netherlands, Ireland, Italy,Luxembourg, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland,Turkey and the UK) on a quarterly basis. Movements between markets on the sameexchange are excluded.

This survey was conducted between 1 July and 30 September 2017 and capturesintroductions as well as IPOs based on their first trading date. All market data issourced from Dealogic and the stock markets themselves and has not beenindependently verified by PricewaterhouseCoopers LLP.

About IPO Watch Europe

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not actupon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) isgiven as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopersLLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyoneelse acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

© 2017 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP which is a member firm ofPricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

Contacts

Katherine Howbrook (Press office)+44 (0) 20 7212 [email protected]

Mark Hughes+44 (0) 20 7804 [email protected]

Lucy Tarleton+44 (0) 20 7212 [email protected]

ipo watch europe q3 2017 - pwcipo watch europe q3 2017 | 5 3.3 5.4 3.0 14.8 11.4 22.3 6.6 9.2 16.4...

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