Taking stock: Deloitte Half-year 2018 IPO Report
IPOs struggle to make first-half mark as second half looks brighter
Australian IPOs delivered a muted performance in the first half of 2018, with more losers than winners, but positive global performance, a record year for the US markets and strong local economic fundamentals provide a real sense of optimism going into the second half.
Key points from Deloitte’s latest IPO update, covering the half-year to 30 June 2018, include:
- 40 companies successfully listed, raising $1.8 billion, compared to 57 listings in the same period in 2017
- 16 (40%) experienced negative returns, with weighted average performance of -1.5%
- Financial services was the dominant sector, accounting for 69% of capital raised – however listed investment funds represented a significant portion of this raising
- Only 10 (25%) of listings raised capital in excess of $75 million.
Deloitte Half-year IPO Report 2018
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Deloitte 2018 IPO report
Australia’s IPO market delivered more than a few surprises in 2017 - including the largest number of ASX listings since the global financial crisis (GFC) and a remarkable performance overall.
According to Deloitte’s 2018 IPO review:
- 115 companies successfully listed in 2017, compared with 94 in 2016 and 97 in 2015
- Weighted average performance for the year was 36.0%, the strongest seen over the recent years
- $6.7 billion of capital was raised, down approximately 15% on the prior year
- Market capitalisation of $11.1 billion
- 29 IPOs exceeded $75 million in market capitalisation, accounting for 87% of all new capital raised
- Financial services was the dominant sector, accounting for nearly 47% of the listed market
- 86 small cap/emerging companies comprised 75% of new listings by volume, with $820 million of new capital raised and new market capitalisation of $2.2 billion
- 25 overseas-based companies successfully listed on the ASX, raising $512 million and achieving end-of-year market capitalisation of $1.71 billion.
Deloitte 2017 IPO market update
Deloitte’s latest IPO report covering the full year of 2016 finds that IPO offerings have been delivering returns of nearly 12% on a weighted basis to the end of December 2016, outperforming the All Ords which closed up 7% for the year. However, in comparison with prior years, Deloitte notes that performance was relatively subdued amidst increasing volatility.
According to Deloitte’s 2017 IPO report:
- 38 larger cap listings (>$75m) in 2016 with an average market capitalisation of $340.3m, which raised a total of $7.4bn in new capital
- 56 small cap listings had an average market capitalisation of $27.3m and raised just under $10.0m in capital on average
- Private Equity exits via IPOs were on par with trade sales in 2016 (on a value weighted basis
- Private equity listings from the start of 2013 have delivered average gains of over 20%.
Deloitte 2016 half year IPO market update
Deloitte’s latest IPO review covering the first half of 2016, finds that new listings confidently outperformed the market – up 16.5% on a weighted average basis, while the ASX closed 1.2% down. The start of the year typically tends to be the window for smaller raisings, but is also an indicator of the level of capital raising activity still to come in 2016.
According to Deloitte’s 2016 half year IPO market update:
- 33 listings in total, with a market capitalisation of $5.7bn, and $2.6bn of new capital raised
- 13 listings to the end of June each exceeded $75m in market capitalisation
- Smaller listings delivered, on average, similar returns to the larger ones, but also displayed significantly higher volatility
- Technology, media and telecommunications (TMT) continues to lead listing volumes by sector, with 12 listings in the first half of 2016 (average gains 17.3%)
- Healthcare listings, while returning average gains of 10.2%, were mixed in terms of individual performance
- Financial services represented 15% of first half 2016 listings and delivered average gains of 13.2%.