May 25, 2016
By Ai Iwakuni
$310m: global IPO average market cap
Global IPO average market cap* has dropped to $310m in 2016 YTD, the lowest YTD level since 2009 ($196m) and down 32% on 2015 YTD ($453m). The decline has been led by mid‐cap ($2bn‐$10bn) IPO volume falling to $6.8bn in 2016 so far, less than a third of $24.6bn raised in 2015 YTD and lowest YTD level since 2012 ($6.7bn).
IPOs by small cap (less than $2bn) companies have also dropped 40% year‐on‐year to $24.1bn in 2016 YTD, the lowest YTD level since 2009 ($2.3bn). This is the first YTD period of no IPOs by large cap ($10bn+) companies since 2009YTD
8.6%: average one day return for mid-cap IPOs
The average one day return** for mid‐cap IPOs totals 8.6%, down from 17.5% in 2015 YTD and on par with 2013 YTD (8.6%). China Zheshang Bank’s $1.9bn IPO on March 21 is the largest IPO globally so far in 2016. Its market cap stood at $9.2bn at the time of pricing and it remained flat on its first day of performance. The deal is also the largest for an IPO by market cap since ABN Amro Group ($17.8bn) listed in November 2015. Similarly, small cap IPOs saw the average one day return drop to 14.3%, also the lowest since 2013 YTD (14.2%) and down from 23.4% in 2015 YTD
$30.8bn: global IPO volume at lowest level since ‘09
The fall mirrors the overall decline in global IPO issuance which has fallen to $30.8bn, nearly half the $65.2bn raised in 2015 YTD and the lowest YTD level since 2009 ($5.4bn) and brings IPO revenue to $978m, down 54% year‐on‐year, the lowest YTD level since 2009 ($179m). 54 IPOs are slated to list in the remainder of 2Q 2016 for an estimated total of $10.5bn. Hotel Lotte is expected to raise $4.4bn next month in what would be the largest IPO globally so far this year
JPMorgan leads global IPO bookrunner ranking
JPMorgan leads global IPO bookrunner ranking in 2016YTD, with a 7.0% market share, followed by Goldman Sachs and Morgan Stanley with 5.8% and 5.6% share respectively
*Market cap post IPO including over-allotment
**Aftermarket performance based on IPOs more than $50m