Global IPO trends: Q4 2017 - EY - United States

1 Global IPO. trends : Q4 2017 . A busy 2017 with more mega-IPOs on the horizon Contents Global IPO market 3. Americas 7. Asia-Pacific 11. Europe, Middle East, India and Africa 21. Appendix 30. About this report EY Global IPO trends report is released every quarter and looks at the IPO markets, trends and outlook for the Americas, Asia- Pacific, Japan and EMEIA regions. The report provides insights, facts and figures on the 2017 . IPO market year-to-date and analyzes the implications for companies planning to go public in the short and medium term. You will find this report at the EY Global IPO Center, where you can also subscribe for future editions. All values are US$ unless otherwise noted. Global IPO market Everything is in place for an exceptional 2018. 2017 will close with more IPOs than any year since 2007. With this great momentum IPO candidates are lining up for 2018.

2 The outlook appears bright, driven by lower volatility across regions, high valuation levels and a renewed appetite for cross-border IPOs, particularly in the US, Hong Kong and London. A healthy Global pipeline across a broad range of sectors and markets suggests IPO activity levels will be up and with more megadeals increasing the Global proceeds in 2018.. Dr. Martin Steinbach EY Global and EMEIA IPO Leader Global IPO trends : Q4 2017 | Page 3. Global IPO market Highlights from the markets Global IPO activity for 2017 is the most active year since Markets Activity Q4 2017 . 2007 by deal number (1,974 IPOs, which raised US$ ). 2017 . Change on Q4 2017 . Change on prior Global IPO activity surged by number of deals and proceeds in prior year year quarter Stock Sectors IPOs exchanges 2017 with 1,624 IPOs raising US$ , compared with 1,093 deals raising US$ in 2016.

3 1,624 49% 409 11% by highest total by highest number of IPOs largest by proceeds IPOs globally IPOs globally proceeds Q4 2017 Global activity levels would have been stronger but stalled due to weaker-than-expected activity levels on Asia- Pacific exchanges. This was partly due to uncertainty around $ 40% $ 6%. China's National People's Congress, changes in Hong Kong proceeds proceeds All amounts in table are in US$. listing rules and the trend for smaller deals. New York Industrials BAWAG. Asia-Pacific still dominated Global activity both by number IPO activity M&A activity (NYSE) 78 IPOs Group AG. of deals and proceeds in 2017 , accounting for more than half (58%) of deal number and more than a third (39%) by proceeds. 2,000 $300. 40,000 $4,000 $ $ $ Financials EMEIA exchanges saw the number of deals rise by 50% and 1,500. $250.

4 18 IPOs Austria capital raised was up 67%. Megadeals (with proceeds of more $200. 30,000 $3,000. Wiener B rse than US$1b) were up on 2016, increasing average deal sizes by 1,000 $150 20,000 $2,000 (Vienna). 45% on the main markets. $100. America's share of Global IPOs improved in 2017 by number 500 10,000 $1,000. of deals and proceeds. The region recorded eight megadeals $50 Bombay Technology General and 28 IPOs with proceeds of more than US$500m, with 0 $0. 0. 2013 2014 2015 2016 2017 . $0. (BSE) and 70 IPOs Insurance cross-border deals accounting for 24% of US IPO activity, SME Corp of India 2013 2014 2015 2016 2017 . reflecting the resurgence of investor confidence, particularly Number of IPOs Proceeds US$b Number of M&A Deal value US$b $ in US exchanges. $ Ltd. $ Financials Greater China, US, India, Australia, Japan and UK Sources of IPOs 17 IPOs India exchanges all turned in strong performances.

5 Greater China Bombay (BSE). 2017 . contributed to 36% of Global deal numbers. Percentage 70% 72% 82% 86% IPO activity was broadly based, indicating investor appetite of proceeds . for IPOs as a class. Industrials and technology were the most 23%. Shanghai Consumer Petrobras Percentage active sectors by deal number, with a strong showing from of IPOs (SSE) products Distribuidora consumer products. Whereas financial services led by 5%. 2% 1% $ 51 IPOs SA. proceeds, followed by technology and industrials. 1%. $ 28% 27%. 1% 39 IPOs $ Financial sponsor-backed IPOs in 2017 saw a decline in 72% 17% 13% Energy terms of the proportion of Global deal number. 2013 2014 2015 2016 2017 Brazil The proportion of cross-border IPOs increased in 2017 by Sao Paulo (B3). Financial sponsor-backed Former state-owned enterprises Non-financial sponsor-backed deal number and proceeds, compared with 2016.

6 Figures may not total 100% due to rounding All amounts in table are in US$. All values are US$ unless otherwise noted. | Q4 2017 and Q4 17 refer to the fourth quarter of 2017 and cover priced IPOs from 1 October to 1 December 2017 plus expected IPOs by the end of December. YTD 2017 and 2017 refers to the full year of 2017 and Global IPO trends : Q4 2017 | Page 4. covers priced IPOs from 1 January to 1 December 2017 plus expected IPOs by the end of December. Global IPO market Regional performance and trends Cross-border IPOs Percentage by number of IPOs globally 2017 7%. The stronger-than-expected turnaround in economic activity in the Eurozone has boosted 2016 6%. expectations for Global economic growth. With China and the US remaining positive, all the major engines of growth in the Global economy are now synchronized in an upward trajectory for the first 2015 8%.

7 Time since the end of the Global financial crisis. 2014 10%. 2013 9%. Regional share by number of IPOs Regional share by proceeds Top IPO issuers 2017 . by number of IPOs outside home country 2017 13% 29% 58% 2017 27% 34% 39% Mainland China (25). Singapore (20). Malaysia (8). 2016 12% 29% 59% 2016 17% 28% 54% US (8). Israel (7). 2015 16% 31% 53% 2015 19% 36% 45%. Top IPO destinations* 2017 . by number of IPOs 2014 25% 30% 45% 2014 38% 31% 31%. Hong Kong (24). NASDAQ (22). 2013 31% 27% 42% 2013 46% 20% 34% London (19). NYSE (19). Australia (14). or = increase or decrease for YTD 2017 compared with the full year of 2016. Americas EMEIA Asia-Pacific *IPO destinations refer to stock exchanges. Figures may not total 100% due to rounding. All values are US$ unless otherwise noted. | Q4 2017 and Q4 17 refer to the fourth quarter of 2017 and cover priced IPOs from 1 October to 1 December 2017 plus expected IPOs by the end of December.

8 YTD 2017 and 2017 refers to the full year of 2017 and Global IPO trends : Q4 2017 | Page 5. covers priced IPOs from 1 January to 1 December 2017 plus expected IPOs by the end of December. Global IPO market Outlook EY IPO sentiment radar The outlook for 2018 is positive. Lower volatility across Our radar contains a variety of market regions, equity indices still hitting all-time highs and factors that may impact investor steady investor confidence are encouraging a healthy pipeline of market-ready companies to build up across sentiment for IPOs. sectors and markets. On the downside, geopolitical risks in Pre-IPO companies should analyze Oil Interest many regions remain visible points on the radar. how these factors may affect their prices rate hikes Implications from 2018 is also exciting as the world's largest oil company.

9 Saudi Aramco, is expected to be one of the largest IPOs in business and ultimately their impact new US industrial on the timing and value of their history with more state-owned enterprise (SOE) IPOs transaction in view of their chosen policies and tax expected to follow across the Middle East and North Africa. IPO destination. reform Mainland China exchanges should continue to lead the way in 2018, supported by a strong pipeline of IPO-ready Brexit companies and rising stock markets. Hong Kong is expected to see an increase in technology listings owing to strong performance of recently listed companies and . government encouragement of the sector. The outlook for IPO activity in Europe is positive, backed Potential impact European elections Geopolitical by strong economic development in important markets. Although predictions for the UK are mixed as the Consider a number of uncertainties economy remains vulnerable amid heightened uncertainty alternative funding or due to Brexit.

10 Exit options Short-term India's IPO market looks good for 2018. The combination Preserve optionality volatility Economic growth of primary market growth and overall economic growth is set to make India a highly attractive emerging market for with early IPO readiness investments for the coming months. preparations A healthy IPO pipeline continues to build in the Americas, Prepare early to complete despite potential headwinds from uncertainty surrounding Currency Regulatory the impact of US tax reform and policy changes and of your IPO quickly in narrow intervention elections in Brazil and Mexico in 2018. IPO windows Cross-border deals look set to remain a feature of the Be flexible in timing Global IPO market in 2018 with exchanges in US, Greater China and London. and pricing All values are US$ unless otherwise noted. | Q4 2017 and Q4 17 refer to the fourth quarter of 2017 and cover priced IPOs from 1 October to 1 December 2017 plus expected IPOs by the end of December.