Renaissance Capital's 2Q 2013 Global IPO Review
The global IPO market continued its fast start to 2013 in the second quarter. Excluding the mega IPO of Facebook in 2Q12, quarterly proceeds were up 79% year-over-year. IPO proceeds in 2Q13 were led by the United States and the Asia Pacific region, which accounted for 31% and 38% of quarterly proceeds, respectively. Asia Pacific held up despite the lingering shutdown of the historically active China A-share market thanks to deal flow in other emerging Asian markets and Japan. This quarter had the highest number of billion-dollar IPOs in over two years from a diverse group of sizable companies, such as Banco do Brasil BB Seguridade Participacoes (BBSE.BZ; $5 billion) and Japanese soft drink distributor Suntory Beverage & Food (2587.JP; $3.9 billion). Despite weak performance from emerging market IPOs, global IPOs generated a 6.7% average return thanks to the strong performance of US IPOs. With IPOs outperforming in developed markets, we expect to see this pattern of strong issuance continue for the remainder of 2013.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.