Rising Tide: Deloitte 2018 IPO Report
A rising tide of 2017 IPO listings with 2018 promising to continue delivering
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 latest annual 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%.
Market update - September 2015
Following a year of record listings, initial public offerings (IPOs) on the ASX have settled into more modest territory in the first half of 2015, with a growing appetite for stocks that offer a balance between income and capital returns as market volatility rears its head once again.
At the end of June 2015:
- 30 IPOs have raised $2.5bn
- This was more by number than the 22 listings in same period of 2014
- Funds raised were significantly less than the $4.6bn raised in the first half of 2014.
Deloitte IPO 2015 Report - March 2015
With $26 billion in equity listed through 74 floats, 2014 was a banner year for Australian IPOs.
The Deloitte 2015 IPO Report, prepared in collaboration with M&A intelligence provider Mergermarket, explores Australian IPO activity in 2014 and presents an outlook for 2015, while reflecting on the increasing complexities of structuring an IPO, the move away from a market dominated by resources companies, and private equity exits through the capital market.