According to Dealogic, global IPO volume stood at US$48.0 billion (246 deals) in the first quarter of 2014, up 92% from US$24.9 billion (165 deals) in the same period in 2013, and the highest first quarter volume since 2010 ($53.7 billion).
The average IPO size in the first quarter was US$195 million, the largest first quarter average size on record, and surpassing the previous first quarter record of US$181 million, set in 2010.
Driven by the end of A-share market freeze, Asia Pacific IPO volume reached US$18.5 billion (125 deals) over three times the US$5.6 billion raised in the first quarter of 2013 (75 deals), and a 67% year-on-year increase in activity. The US$3.1 billion IPO of HK Electric Investments / HK Electric Investments Ltd was a carve-out by Power Assets Holdings Ltd. The deal was the largest IPO globally so far this year and the largest IPO with two or fewer bookrunners since Kinder Morgan Inc’s US$3.3 billion IPO in February 2011.
The EMEA IPO volume more than doubled year-on-year to US$18.1 billion in the fist quarter from US$7.1 billion in the same period in 2013, while activity increased 32% over the same period to 52 deals from 31 deals in 2013. The average deal size of US$348 million was the highest quarterly average on record.
The real estate sector raised US$$5.7 billion (19 IPOs) and accounted for a 12% share of global IPO volume. This was down from US$7.9 billion and a 32% share in 1Q 2013. UK property company Kennedy Wilson Europe Real Estate plc’s US$1.5 billion transaction was the largest real estate IPO in the quarter globally.
Technology and internet related IPO volume stood at US$9.3 billion (47 deals), the highest first quarter volume in 15 years (US$36.0 billion in 1Q 2000). Technology and internet related IPOs recorded an average one day return of 36%, the highest average first quarter one day return since 2010 (41%). Weibo filed for an IPO offering in March 2014, expecting to raise approximately US$500 million. If priced successfully, this will mark the largest Chinese technology IPO listed in the US since Renren’s US$800 million IPO in 2011.
36 IPOs were withdrawn/postponed in the quarter, up 64% from 22 transactions in 1Q 2013.