| 1

Contacts:
Maria Pinelli
Global IPO Leader
maria.pinelli@ey.com
Jacqueline Kelley
Americas IPO Leader
jacqueline.kelley@ey.com
Ringo Choi
AsiaPacilc lPO Leader
ringo.choi@cn.ey.com
Dr. Martin Steinbach
EMEIA IPO Leader
martin.steinbach@de.ey.com
Shinichiro Suzuki
Japan IPO Leader
suzuki-shnchr@shinnihon.or.jp
EY Global IPO Trends
Report
Q3 2013
Welcome
Welcome to the new-look quarterly EY Global IPO Trends report, which provides extensive
commentary on listings activity across the world and analysis of key drivers from EYs
Global IPO network.
Despite a comparatively quiet third quarter in line with historical trends of slower activity
over the months of July through September we expect global IPO activity to lift through
the remainder of the year and into 2014. The uplift in activity could vary from region to
region both in terms of timing and pace.
ln Lhe lrsL Lhree quarLers ol 2013 Lhe US has surpassed iLs LoLal number ol lPOs in 2012.
Average deal size continues to trend lower, because of the high number of health care
and technology IPOs that came to the public markets. Pricing remains a top concern for
invesLors some pricinq pressure conLinued in O3'13 buL averaqe posLlPO reLurns Lrended
hiqher, ouLperlorminq Lhe S&P 500 index and poinLinq Lo susLained acLiviLy in Lhe US. ln
conLrasL, lPO acLiviLy in CenLral and SouLh America remains solL in O3'13 due in parL Lo
softer economic fundamentals, but we are seeing improvement year-on-year.
Europe is seeing more mid-sized and large IPOs, with private equity a key driver, particularly
in Lhe maLure economies ol Lhe UK and Cermany. WiLh economic condiLions sLabilizinq,
reqional debL markeLs sLeadyinq and Lhe nearLerm LhreaL Lo qrowLh lrom lscal ausLeriLy
receding, market volatility has subsided and valuations are improving. The conditions are
riqhL lor an increase in public lisLinqs in Lurope in Lhe remainder ol 2013.
The ongoing suspension of new listings on mainland China exchanges has affected IPO
acLiviLy levels in Asia. A drop in lPOs in Japan, lollowinq a blockbusLer O2'13, also weiqhed
on LoLal proceeds in O3'13. AcLiviLy on oLher exchanqes solLened, relecLinq weaker
economic and market conditions. However, conditions in the region are expected to improve
in Lhe lnal monLhs ol 2013, wiLh a qrowinq lisL ol companies planninq Lo conducL larqe
lPOs in Honq Konq and Japan. We also expecL more lPO lisLinqs lrom emerqinq markeLs
such as Thailand, Singapore, Malaysia and to an extent Indonesia.
We hope that the analysis and perspectives contained in this report will be of use to all
participants in the capital markets but, should you require further insight, please contact
me or the EY IPO Leader in your region.
Maria Pinelli
Global Vice Chair
Strategic Growth Markets
EY
2 |
Global IPO activity is projected to reach 197 deals with IPO
proceeds ol around USS2^.^b in O3'13. So lar Lhis quarLer,
Lhere have been 160 lPOs, which raised USS18.2b. An
addiLional 37 lPOs are scheduled belore end ol O3'13,
which should raise an addiLional USS6.1b il successlul.
Based on Lhe pro|ecLed O3'13 LoLals, qlobal lPO acLiviLy is
expected to be down 4% in terms of deal numbers and 47%
in Lerms ol deal value, compared Lo O2'13. However, O3'13
activity is projected to be slightly higher by deal numbers but
capiLal raised is expecLed Lo be somewhaL lower Lhan in O3'12,
which saw 191 lPOs raise USS29.6b.
For Lhe lrsL nine monLhs ol 2013, around 566 lPOs are
expecLed Lo raise USS9^.8b, down lrom 637 lisLinqs wiLh LoLal
proceeds ol USS91.^b in Lhe same period in 2012.
48 44 29 42 40 63 48
109
131
125
112
84
78
78
44
60
32 39
32
58
28
3
7
5
7
7
7
6
0
50
100
150
200
250
N
u
m
b
e
r

o
f

d
e
a
l
s
North America AsiaPacihc
EMEA Central and South America
Q112 Q212 Q312 Q412 Q113 Q213 Q313
Quarterly IPO deals by region*
6,280 23,333 4,109 9,725 9,079 13,791 8,773
7,915
15,494
19,240
14,617 5,668
17,942
5,436
3,476
1,886
1,223
9,777
6,705
6,702
2,470
325
3,090
5,017
3,059
2,881
7,776
1,568
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Q112 Q212 Q312 Q412 Q113 Q213 Q313
P
r
o
c
e
e
d
s

(
U
S
$
m
)
North America AsiaPacihc
EMEA Central and South America
Quarterly IPO proceeds by region*
Overall, qlobal lPO acLiviLy in Lhe Lhird quarLer ol 2013 was
a story of two halves. In July and August, signs of improving
macroeconomic conditions, particularly in the developed
economies, coupled with ultra-low interest rates and new
indications from major central banks that they would keep
monetary conditions loose for longer, were all supportive of
public listings. This combination saw market volatility decline
subsLanLially in Lhe lrsL hall ol O3'13, wiLh Lhe CBOL VolaLiliLy
lndex (VlX) droppinq lrom 16.867 aL Lhe end ol O2'13 Lo
12.94% at the start of August. Equity indices and IPO activity
gathered steam concurrently, with the S&P 500 hitting its
hiqhesL level since OcLober 2007. 1here were 139 new
ollerinqs in July and AuqusL 2013, raisinq a LoLal ol USS16.7b,
compared Lo 138 deals which raised USS13.2b in Lhe same Lwo
months of 2012.
MarkeL condiLions Lurned in Lhe second hall ol O3'13, as
investor concern grew on impending monetary tightening
lrom Lhe US Federal Reserve alLer indicaLions LhaL iL would
soon begin to taper its asset purchase program, potentially
driving volatility higher and putting risk assets, especially
in the emerging markets, under pressure. Following hints
Lo Lhe conLrary, Lhe surprise decision on 18 SepLember Lo
delay Laperinq siqnaled LhaL Lhe US Federal Reserve is sLill
concerned about the economy. In the near term there may be
some upside, particular in the emerging markets, from where
invesLors had been pullinq Lheir money and reLurninq Lo Lhe US,
in search of higher yields. However, the expectation is that a
reduction in stimulus will begin at some point this year.
Global IPO activity Q3 analysis
Global IPO activity softer in Q313, though the
underlying improving trend is intact
2013
O1'13 O2'13 O3'13` Total
Number of deals 163 206 197 566
Capital raised
(USSb)
2^.3 46.2 24.4 94.9
Average deal size
(USSm)
1^9.3 22^.3 123.6 167.7
% Increase /
decrease
2013
JanSep
vs 2012
JanSep
O3'13 vs
O2'13
O3'13 vs
O3'12
Number of deals -11.1% -4.4% 3.17
Capital raised 3.87 ^7.37 -17.7%
2013 Global IPO activity by quarter
` O3'13 relers Lo pro|ecLed lPO acLiviLy which consisL ol priced lPOs as ol 19 SepLember and
expected IPOs by end of September. . Source: Dealogic.
` Based on priced lPOs as ol 19 SepLember. Source: Dealogic.
` Based on priced lPOs as ol 19 SepLember. Source: Dealogic.
| 3
Issuer Name Sector Capital raised
(USSm)
Exchange(s)
Envision Healthcare
Holdings Inc
Health care 1,110.9 New York
(NYSE)
American Homes 4
RenL
Real esLaLe 811.8 New York
(NYSE)
Frank's International
NV
Energy 759.0 New York
(NYSE)
Deutsche Annington
Immobilien GmbH
Real esLaLe 738.5 Deutsche
Borse
Z Energy Ltd Energy 677.0 Australia
(ASX)
NRC Yield lnc Energy 495.2 New York
(NYSE)
QEP Midstream
Partners LP
Energy ^83.0 New York
(NYSE)
OUL HospiLaliLy 1rusL Real esLaLe 475.9 Singapore
(SGX)
SPH RLl1 Real esLaLe ^39.7 Singapore
(SGX)
Phillips 66 Partners LP Energy ^3^.^ New York
(NYSE)
Q313 Top 10 global IPOs by capital raised`
Sector Number
of deals
% of global
deal
number
Capital
raised
(USSm)
% of
global
capital
raised
Energy 21 13.17 5,601.7 30.77
Real esLaLe 20 12.5% 4,566.9 25.0%
Health care 23 14.4% 2,306.8 12.6%
Industrials 19 11.9% 1,^38.1 7.9%
Technology 22 13.87 92^.8 5.1%
Financials 16 10.0% 858.3 4.7%
ReLail 8 5.0% 815.9 4.5%
Media and
entertainment
6 3.87 714.1 3.97
Consumer staples 8 5.0% 713.2 3.97
Materials 9 5.6% 269.5 1.5%
Consumer products
and services
6 3.87 26.2 0.1%
Telecommunications 2 1.37 11.6 0.1%
Global total 160 100.0% 18,246.9 100.0%
Q313 global IPOs by sector`
Signs of softer economic prospects in key emerging markets,
including India and Brazil, alongside new global geopolitical
concerns in Syria and Turkey, did not help investor sentiment.
ln Lhe lrsL week ol SepLember, Lhe VlX index was up Lo 16.617
lrom iLs 11.87 low aL Lhe sLarL ol AuqusL. As a resulL, LoLal
lPOs in SepLember are pro|ecLed Lo reach 58, wiLh expecLed
LoLal proceeds ol USS7.3b.
1
1his compares Lo 53 deals raisinq
USS16.^b in SepLember 2012, and 6^ lPOs raisinq USS^.1b
in September 2011.
However, Lhere are some siqnilcanL indicaLions LhaL Lhe
underlying improving trend in global IPO activity is intact.
1
1he pro|ecLed LoLal includes Lhe 21 lPOs which raised USS1.6b LhaL have been compleLed as ol
19 SepLember and anoLher 37 deals wiLh expecLed proceeds ol USS5.8b expecLed by end ol
September, according to Dealogic data.
2
Median lrsLday reLurns lor lPOs wiLh capiLal raised above USS50m.
1he lrsLday "pop" (averaqe lrsL day qains) in new lisLinqs
rose in O3'13, which could suqqesL qreaLer invesLor opLimism.
1he median lrsLday share price qain relaLive Lo Lhe oller
price, was at 4.5%
2
in O3'13, above LhaL lor 2012 and
2013 Y1D, accordinq Lo Dealoqic daLa. 1he number ol deal
posLponemenLs and wiLhdrawals also slowed sharply in O3'13.
FurLhermore, lor Lhose deals LhaL did lisL in O3'13, 927 priced
wiLhin or above Lheir iniLial llinq ranqe, compared Lo 887 in
O2'13 and 897 in O3'12.
` Based on priced lPOs as ol 19 SepLember. Source: Dealogic.
` Based on priced lPOs as ol 19 SepLember. Source: Dealogic.
4 |
9%
22%
16%
25%
6%
13%
10%
9%
42%
25%
21%
14%
12%
4%
0%
-9%
-20%
-10%
0%
10%
20%
30%
40%
50%
%

E
q
u
i
t
y

m
a
r
k
e
t

r
e
t
u
r
n
s

y
e
a
r
-
t
o
-
d
a
t
e
2012 YTD return 2013 YTD return
Headinq inLo O^'13, qlobal economic lundamenLals are
sLrenqLheninq. Leadinq indicaLors conLinue Lo poinL Lo lrminq
GDP growth in the major developed economies in the coming
monLhs. ln Lhe UniLed SLaLes, employmenL qains are Lrendinq
at a solid pace, and recent export and manufacturing indicators
are lrm. Lurope is ouL ol recession and economic conldence,
production and export data are stronger. Japan has also
bounced back, reporting solid GDP gains and rising trade and
manufacturing.
The OECD composite leading indicator rose to 100.7 on its
latest reading, pushing further above its long-term average
level of 100.0, to its highest level since April 2011.
The outlook for emerging markets is softer. The OECD leading
indicator suggests slowing momentum in major emerging
economies, including Brazil and India. However, other leading
indicaLors suqqesL sLabilizaLion in China and also in Russia. As a
result, weaker performance in emerging economies in the near-
term should not derail the better overall global outlook.
Outlook for Q4
An improving global economic outlook is
supportive for IPO activity in Q413, although
monetary policy changes may heighten
uncertainty
-2
-1
0
1
2
3
4
5
6
0
100
200
300
400
500
600
Number of IPOs OECD +6 Major Emerging
Economies Leading Indicator
N
u
m
b
e
r

o
f

I
P
O
s
Y
e
a
r
-
o
n
-
y
e
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r

g
r
o
w
t
h
Q
2

1
0
Q
3

1
0
Q
4

1
0
Q
1

1
1
Q
2

1
1
Q
3

1
1
Q
4

1
1
Q
1

1
2
Q
2

1
2
Q
3

1
2
Q
4

1
2
Q
1

1
3
Q
2

1
3
Q
3

1
3
Q
4

1
3
Q
1

1
4
OECD Leading indicator growth vs. number of IPOs
Stronger performance in equities in many developed
markets indicates increasing investor conhdence
The combination of these factors is supportive for equity
markeLs and lPOs in O^'13. However, much hinqes on Lhe
outlook for global monetary conditions. Extremely loose
monetary policy at the worlds major central banks is expected
to stay in place for several quarters yet. The prospect of the
US Federal Reserve beqinninq Lo Laper iLs asseL purchase
program potentially before the end of the year does not
represent a step-change in policy. Tapering is expected to be
very gradual, and the cautious tone of communications from
Lhe Federal Reserve suqqesLs policymakers remain inLenL on
doing whatever is necessary to support economic growth.
Crucially, recent economic data, while improving, is not
expected to prompt a change in thinking from central banks
on interest rates. Jobs growth and other fundamentals are still
relaLively solL, and wiLh inlaLion pressures muLed, policymakers
have some breathing room. As a result, interest rates are
expected to remain at record lows for the foreseeable future.
This combination of better growth and easy monetary
conditions is ultimately supportive for equity capital markets.
Conditions could remain volatile near-term, until investors have
more clarity on what tapering will actually look like. Emerging
markets in particular could feel the pressure, as investors
process the implications for their portfolios of a wind down in
monetary stimulus. However, barring a large deviation from
this outlook, market volatility is not expected to increase.
Investors have been encouraged by
rising valuations, but pricing remain a
critical concern. More than ever, pre-IPO
companies need strong brand names
or earnings track records to obtain
appropriate pricing and secure investor
supporL."
Maria Pinelli | Global Vice Chair,
Strategic Growth Markets, EY
"
Source: OECD.stat, Dealogic.
Source: S&P Capital IQ.
| 5
24%
16% 15%
18%
21%
25%
19%
76%
84% 85%
82%
79%
75%
81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Financial sponsored Corporate deals
Q112 Q212 Q312 Q412 Q113 Q213 Q313
Financial sponsored backed vs Corporate IPO deals
27
38
27
63
24
47
22
26
35
26
20
26
32
40
22
10
20
30
40
50
60
70
N
u
m
b
e
r

o
f

I
P
O
s
Q
1

1
0
Q
2

1
0
Q
3

1
0
Q
4

1
0
Q
1

1
1
Q
2

1
1
Q
3

1
1
Q
4

1
1
Q
1

1
2
Q
2

1
2
Q
3

1
2
Q
4

1
2
Q
1

1
3
Q
2

1
3
Q
3

1
3
Global PE-backed IPOs by quarter
*
IPO activity should lift in Q413
In this environment, global IPO activity is expected to lift in the
lnal quarLer ol Lhe year. lmprovinq macroeconomic condiLions,
still-loose global monetary policy settings and steadying market
volatility suggest a wider window for new listings in the coming
monLhs. ln O^'13, Lhe number ol lPOs worldwide could reach
200 Lo 250, qeneraLinq LoLal proceeds ol around USS30 ^0b.
This would be in line with Q412 levels, with policy uncertainty
suggesting the path to recovery in the IPO markets may not be
a smooth one, despite a better economic backdrop.
From region to region, the recovery could be uneven both in
terms of timing and pace. In particular, the continued prospect
ol Federal Reserve Laperinq and less accommodaLinq qlobal
monetary conditions could drive some divergence in IPO
acLiviLy beLween developed and emerqinq markeLs in O^'13.
There is further potential downside for emerging markets in the
coming months, though this is not expected to be substantial
given the recent sell-off. Slower economic growth in some
emerging markets, alongside the prospect of central bank rate
rises in order to stabilize exchange rates, would be unfavorable
lor hiqh levels ol lPO acLiviLy. 1his dynamic could be relecLed
in institutional investors appetite for new listings. At the same
time, improving economic conditions and investor interest in
developed markeL equiLies could supporL relaLively lrm lPO
acLiviLy in ma|or markeLs includinq Lhe US, Cermany and
Lhe UK.
More Lhan ever, lrms need sLronq brand names or earninqs
track records to obtain appropriate pricing and secure investor
supporL. lmminenL lPOs ol wellknown brands like US hoLel
chain HilLon Worldwide, Lhe UK's sLaLeowned posLal and courier
services company, Royal Mail, social media company 1wiLLer
and operator of business-to-business online market-place
Alibaba are expected later this year or in 2014.
PE-backed IPOs should also gain pace
PL lrms' parLicipaLion in Lhe lPO markeL has Lracked broader
market trends closely in recent quarters. This is expected to
conLinue in O^'13, wiLh acLiviLy seL Lo acceleraLe, assuminq Lhe
level of volatility in the equity market holds steady.
PE-backed deals were an important part of the rising trend in
lPOs in H1'13, and accounLed lor around oneLhird ol Lhe LoLal
proceeds raised by all lPOs in Lhe lrsL hall ol Lhis year. PL
backed companies raised USS21.2b Lhrouqh 72 lPOs in Lhe lrsL
hall ol 2013, more Lhan Lwice Lhe second hall ol 2012, when
^5 companies raised USS9.2b. Pricinq Lrends were also posiLive
in H1'13; LhreequarLers ol PLbacked deals priced wiLhin or
above their expected ranges.
O3'13 has been comparaLively quieLer, in line wiLh Lhe overall
global market. PE-backed offerings slowed to 22 deals in the
quarLer, down lrom an averaqe ol 36 lPOs in O1'13 and O2'13
and LoLal proceeds were USS^.8b, down lrom an averaqe ol
USS10.6b in Lhe lrsL Lwo quarLers, accordinq Lo Dealoqic daLa.
Lookinq lorward Lo O^'13, Lhere are several leadinq indicaLors
that suggest PE-backed deals should rise. Filings are on an
upward Lrend and Lhere is a siqnilcanL pipeline ol PLbacked
companies waiting to go public. As at 20 September, there
are 75 companies in active registration, which could raise
more Lhan USS17.7b in aqqreqaLe. WiLhdrawal acLiviLy has
also been minimal this year. In addition, the solid aftermarket
performance of recent listings is an important catalyst for
PE investors to take companies public. The large overhang of
companies acquired during pre-recession years should also
moLivaLe lrms Lo Lake advanLaqe ol beLLer valuaLions in
O^'13, parLicularly in developed markeLs.
Source: Dealogic.
* Based on priced IPOs as of 19 September. Source: Dealogic.
6 |
Clobally, O3'13 saw Lhe healLh care and enerqy secLors lead
IPO activity in terms of volume of activity and proceeds
qeneraLed. Lnerqy deals accounLed lor 317 ol Lhe USS18.2b
global total capital raised.
3
The largest deal worldwide in
O3'13 was Lnvision HealLhcare Holdinqs, lnc., which lisLed
on Lhe NYSL wiLh proceeds ol USS1.1b. 1he real esLaLe and
technology sectors were the next most active sectors from a
deal volume and value perspective.
1he lnal quarLer ol 2013 is expecLed Lo round ouL a more
balanced year for global IPO activity, with a diverse mix of
sectors likely to continue to drive new listings. The global IPO
backloq shows 1^ ma|or indusLries have more Lhan lve deals
pending, according to Dealogic data.
Still, some sectors are set to lead total activity higher in
Lhe quarLer. O^'13 is expecLed Lo be a beLLer quarLer lor
Lechnoloqy deals, lollowinq a lull in lisLinqs in O3'13 when
higher market volatility drove increased postponements
and withdrawals. Several large listings are rumored heading
into the new quarter, though the timing of these deals is
unclear. Twitter Inc., for example, has announced plans for
an IPO listing on 12 September. At the same time, conditions
are lookinq lrmer lor lisLinqs lrom Lhe lnancial secLor. 1he
sector has experienced solid improvement in earnings in
recent months, mainly in North America, where the backlog
is hiqhesL. ln Lhe US, lnancial became Lhe biqqesL indusLry in
Lhe S&P 500 by markeL capiLalizaLion in O3'13. 1his is Lhe lrsL
Lime Lhe secLor has held Lhis spoL since 2008. lmprovinq asseL
quality and slowing writedowns suggest the sector should
continue to trend higher, which is supportive for new offerings.
Real esLaLe should also reLain iLs posiLion as a parLicularly
acLive secLor, especially in Lhe US. Cyclical recovery in Lhe
US housinq markeL, alonqside onqoinq invesLor appeLiLe lor
attractive yields, should continue to support successful new
listings. In Europe however, there are not as many large targets
going forward. Yield plays should also drive another active
quarter for utilities and energy master limited partnerships.
There was a short-term correction mid-year, with uncertainty
on Federal Reserve Laperinq drivinq posLponemenLs and
withdrawals higher. However, with central bank rates set to
hold steady in the coming months, irrespective of any tapering
in quantitative easing programs, investor demand for income
should persist for some months yet.
Industry analysis
Technology, hnancials, real estate expected to
drive activity in Q413
16 16 24
5
5
6
8
8
1
7
2
1
2
11
North America
EMEA
Central and
South America
Asia-Pacihc
$643
$1,551
$241
$2,330
1,293
$5,677
$1,811
$330
$75
$2
$452
North America
EMEA
Asia-Pacihc
Financial*
Financial by number of deals
Central and
South America
Q213
Financial by capital raised (US$m)
Q113 Q313
$2,435 $858 $11,112
3
2
1
16
4
9
1
17
2
6
2
9
22 19 31
North America
EMEA
Central and
South America
Asia-Pacihc
North America
EMEA
Asia-Pacihc
Industrial*
Industrial by number of deals
Central and
South America
Q213
Industrial by capital raised (US$m)
Q113 Q313
$2,053 $1,438 $8,045
$790
$730
$89
$443
$1,279
$1,134
$560
$5,072
$219
$321
$776
$122
3
1his is based on qlobal priced lPOs as ol 19 SepLember (160 deals raisinq USS18.2b).
` Based on priced lPO as ol 19 SepLember. Source: Dealogic.
| 7
9
6
2
6
9
3
9
4
5
1
10
$1,418
$2,430
$1,067
$2,996
$1,564
$305
$2,555
$1,211
$1,267
$379
$1,710
23 20 21
North America
EMEA
Central and
South America
Asia-Pacihc
North America
EMEA
Asia-Pacihc
Real estate*
Real estate by number of deals
Central and
South America
Q213
Real estate by capital raised (US$m)
Q113 Q313
$7,911 $4,567 $4,423
$443
$36
$265
$451
$1,377
$120
$260
$593
$197
$135
4
3
1
8
9
6
5
7
8
7
16 22 20
North America
EMEA
Central and
South America
Asia-Pacihc
North America
EMEA
Asia-Pacihc
Technology*
Technology by number of deals
Central and
South America
Q213
Technology by capital raised (US$m)
Q113 Q313
$1,196 $925 $1,757
$1,230
$4
$598
$251
$445
$318
$409
$1,507
$3,276
$420
$411
$1,495
4
2
1
5
2
4
1
5
9
2
1
9
12 21 12
North America
EMEA
Central and
South America
Asia-Pacihc
North America
EMEA
Asia-Pacihc
Energy*
Energy by number of deals
Central and
South America
Q213
Energy by capital raised (US$m)
Q113 Q313
$2,083 $5,602 $2,679
$2,879
$105
$101
$2,074
$614
$618
$2,037
$85
$184
6
4
5
14
10
7
16
3
4
15 23 31
North America
EMEA
Central and
South America
Asia-Pacihc
North America
EMEA
Asia-Pacihc
Health care*
Health care by number of deals
Central and
South America
Q213
Health care by capital raised (US$m)
Q113 Q313
$3,085 $2,307 $3,305
` Based on priced lPO as ol 19 SepLember. Source: Dealogic.
8 |
Regional analysis
US continues its strong momentum and stronger
IPO activity from Hong Kong and South East
Asian exchanges
The Americas
Strong US activity in Q3 with further upswing forecast,
while conditions remain challenging in Central and
South America
2013
O1'13 O2'13 O3'13` Total
Number of deals 33 62 65 160
Capital raised
(USSb)
8.6 14.7 11.8 35.1
Average deal size
(USSm)
260.4 236.6 182.2 219.4
% Increase /
decrease
2013
JanSep
vs 2012
JanSep
O3'13 vs
O2'13
O3'13 vs
O3'12
Number of deals 587 5% 141%
Capital raised -7% -19% 45%
United 5tates exchanges IPC activity
For O3'13, US exchanqes are pro|ecLed Lo raise USS11.8b lrom
65 lPOs, accounLinq lor 337 ol lisLinqs qlobally in Lerms ol
number of deals and 49% by capital raised.
1he number ol compleLed lPOs in Lhe US so lar lor 2013 has
already surpassed last years total with 142 completed IPOs
in Lhe lrsL nine monLhs ol 2013 compared Lo 137 in Lhe whole
of 2012 with both the second and third quarter deal volumes
greater this year than during the same periods last year. By
capiLal raised, O1'13 and O3'13 LoLals have surpassed Lhe LoLal
proceeds ol O1'12 and O3'12.
From a sector perspective, health care is expected to be the most
active sector by number of deals and ranks second by capital
raised (21 lPOs, which raised USS2.^b) in O3'13. Moreover, Lhe
health care sector, such as biotechnology and pharmaceutical
developmenL lrms, led lPO acLiviLy by boLh deal volume and
deal value lor Lhe lrsL nine monLhs ol 2013 Lhis is Lhe hiqhesL
volume ol lPOs since 2007. 1he median lrsL day reLurn lor
healLh care lPOs compleLed in Lhe lrsL nine monLhs ol 2013 is
around 9.37, compared Lo a median reLurn ol all US lPOs lor Lhe
same time period of 5.0%.
The technology sector is expected to be the second most active
by deal numbers in O3'13 and Lhe lrsL nine monLhs ol 2013.
1he secLor ranked Lhird by capiLal raised (12 lPOs, USS1.^b) in
O3'13. Lnerqy was Lhe mosL acLive secLor by proceeds in O3'13
and Lhird by deal number (9 lPOs, USS3.^b) Lhis secLor should
conLinue Lo be a subsLanLial conLribuLor headinq inLo O^'13.
AlLhouqh Lhe US accounLed lor six ol Lhe larqesL 10 lPOs qlobally
in O3'13, averaqe deal size conLinues Lo Lrend lower, because
of the higher number of health care and technology IPOs that
came Lo Lhe public markeL wiLh averaqe deal size beinq 367 and
3^7 lower Lhan Lhe averaqe deal size ol all US lPOs. LxpecLed
averaqe deal size on US exchanqes in O3'13 is nearly USS182m,
compared Lo Lhe averaqe deal size ol USS116.3m lor healLh care
lPOs and USS119.8m lor Lechnoloqy lPOs.
Despite encouraging levels of activity and investor interest,
pricing remains a top concern for investors. Some pressure on
pricinq conLinued in O3'13. While 207 ol ollerinqs were priced
above ranqe, 287 were priced below ranqe. Amonq Lhose priced
within range, almost 40% were at the lower end.
However, posLlPO reLurns Lrended hiqher wiLh averaqe lrsL day
reLurns lor US lPOs in O3 aL 1^.27, ouLperlorminq Lhe S&P 500
index by 9.17. O3'13 saw lund lows inLo US equiLies, on posiLive
invesLor senLimenL reqardinq US prospecLs. Alonqside Lhe
capiLal inlux, US valuaLions are also lrm. For example, Lhe S&P
500 is currently trading at around 20 times reported earnings,
close to the highest level since April 2010. This combination
of attractive valuations and the solid aftermarket performance
ol recenL ollerinqs suqqesLs LhaL O^'13 will be a qood Lime
lor companies Lo qo public in Lhe US markeL, across a ranqe ol
industries.
Looking ahead, real estate IPOs are expected to continue to
be acLive in O^'13, in parLicular Real LsLaLe lnvesLmenL 1rusLs
(RLl1s) and residenLial developmenL lrms. We expecL LhaL
O^'13 should be beLLer lor Lhe Lechnoloqy secLor overall, wiLh
cross-border listings a potentially important contributor to new
lisLinq acLiviLy on US exchanqes. 1he success ol Lhe USS1.2b
secondary ollerinq by social neLworkinq lrm Linkedln in early
September was an important barometer of investor appetite
for social media listings and the outcome of the pending listing
ol 1wiLLer lnc. poLenLially in O^'13 or O1'1^ will provide
further evidence of the level of investor interest. We also expect
to see IPOs in big data and cloud computing sub-sectors over
Lhe nexL lew monLhs. ln addiLion, lnancial lrms should be a
substantial contributor to IPO activity.
While Lhe lPO markeL in Lhe US conLinues iLs sLronq momenLum,
investor sentiment across the Americas region is mixed. IPO
activity in selected parts of Central and South America remain
solL in O3'13 due in parL Lo solLer economic lundamenLals
and historically slower activity during the summer months.
However, lPO acLiviLy by deal volume and deal value lor Lhe lrsL
nine monLhs ol 2013 has already surpassed Lhe same period
in 2012, due to improvement in listing activity from Brazil and
Mexico exchanges.
` O3'13 relers Lo pro|ecLed lPO acLiviLy which consisL ol priced lPOs as ol 19 SepLember and
expected IPOs by end of September. Source: Dealogic.
| 9
2013
O1'13 O2'13 O3'13` Total
Number of deals 7 6 5 18
Capital raised
(USSb)
2.9 7.2 1.1 11.2
Average deal size
(USSm)
411.6 1200.1 227.5 623.3
% Increase /
decrease
2013
JanSep
vs 2012
JanSep
O3'13 vs
O2'13
O3'13 vs
O3'12
Number of deals 387 -17% 25%
Capital raised 176% 8^7 26%
Central and 5outh America exchanges IPC activity
EMEA
Positive signals in mature economies of Europe;
PE a driver as larger deals dominate
IPO sentiment across Europe is improving. The region is
pro|ecLed Lo see 30 lPOs in O3'13, wiLh USS3.0b in expecLed
proceeds. AlLhouqh Lhis indicaLes a drop ol 297 and 367
respecLively on Lhe prior quarLer, deal proceeds in O3'13 were
6637 hiqher Lhan O3'12 levels, while Lhe level ol capiLal raised
in Lhe lrsL Lhree quarLers ol Lhe year was up 20^7 on Lhe same
period in 2012. However, average deal size dropped slightly
lrom USS113m in O2'13 Lo USS102m in O3'13 where
O3 hisLorically see lower level ol acLiviLy durinq Lhe summer
months.
MaLure markeLs are Lhe mosL acLive, parLicularly Lhe UK and
Germany where valuations are comparatively high and volatility
levels have subsided. European stock markets including the
F1SL 100 and SLoxx Lurope 600 hiL lveyear hiqhs in O2'13
and O3'13, wiLh Lhe DAX 30 index reachinq Lhe hiqhesL level on
record on 19 SepLember. Followinq Lhe 18 SepLember decision
by Lhe US Federal Reserve Lo mainLain iLs asseL purchase
program, all major European indices climbed again.
Mid Lo larqe size lPOs were mosL prevalenL in O3'13; Lhe Lwo
largest European IPO was German real estate group Deutsche
AnninqLon lmmobilien CmbH, which raised USS738.5m and
FoxLons Croup plc, which raised USS558m on London's Main
Market.
Conversely, in the emerging markets of Middle East and Africa,
smaller deals are prevailing. Middle East exchanges saw 10
lPO lisLinqs which raised USS2.2b alLoqeLher in Lhe lrsL nine
monLhs ol 2013, while Alrican exchanqes conducLed nine lPOs
which raised USS1^9m in LoLal.
Lower volume in Lurope overall in O3'13 and 2013Y1D could
be attributed to the slowdown in small- and mid-cap listings
in the Poland IPO market. There were two deals each on the
Warsaw main market and the junior market NewConnect in
O3'13, down lrom Lwo and 17 lisLinqs respecLively in O3'12.
So lar in 2013 Lhere have been six lPOs on Lhe Warsaw main
market and 20 on NewConnect compared to six and 62 IPOs
respecLively in Lhe lrsL nine monLhs ol 2012.
Private equity remains an active driver, particularly of deals
over USS100m. So lar Lhis year, PLbacked lPOs in Lurope
have accounted for 17% of deal volume and 56% of proceeds,
a marked increase over 2012 where PE-backed deals combined
accounted for 10% of total proceeds for the full year. With
listings of PE-backed companies such as Grohe, Europes
biggest bathroom equipment maker, predicted to complete
belore Lhe end ol 2013, Lhis Lrend is seL Lo conLinue.
Brazil saw seven lPOs which raised USS7.7b in Lhe lrsL nine
monLhs ol 2013, an improvemenL lrom Lhe 3 lPO lisLinqs which
raised USS2.1b durinq Lhe same period in 2012. Six ol Lhe
seven lPOs in 2013 were priced wiLhin Lheir iniLial llinq ranqe.
However, Lhe pace ol acLiviLy beLween O2'13 and O3'13 has
slowed. After the worlds largest IPO this year (BB Seguridade
ParLicipacoes SA raisinq USS5.7b) in April, Brazilian lisLinqs
have slowed dramatically with just one IPO since. Slower market
conditions forced two big companies, Votorantim Cimentos SA
and Azul Airline, Lo wiLhdraw Lheir lPOs durinq O3'13.
IPO activity on Mexican Stock Exchange has trended higher
over the last two years compared to previous high level in 2007
and 2008. 1here were seven lPOs which raised USS3.^b in Lhe
lrsL nine monLhs ol 2013, which is markedly hiqher Lhan Lhe
3 lPOs which raised USS1.1b durinq Lhe same Lime period in
2012. All seven lPOs in 2013 were priced wiLhin Lheir iniLial
llinq ranqe.
ln Lhe lrsL Lhree quarLers ol 2013, Lhe
US has surpassed iLs LoLal number ol
IPOs in 2012. Pricing a top concern for
investors came under some pressure
in O3, buL posLlPO reLurns have Lrended
higher and outperformed the S&P 500
index. This points to sustained activity in
Lhe US."
Jacqueline Kelley | Americas IPO Leader, EY
"
` O3'13 relers Lo pro|ecLed lPO acLiviLy which consisL ol priced lPOs as ol 19 SepLember and
expected IPOs by end of September. . Source: Dealogic.
10 |
Asia
Activity expected to improve; pipeline oI megadeals
is encouraging
Asian lPO acLiviLy conLinued Lo slow overall in O3'13, wiLh
LoLal proceeds lallinq lrom USS15.6b in O2'13 Lo a pro|ecLed
LoLal ol USS6.^b in O3'13,
4
while deal numbers are expected
Lo rise lrom 62 lPOs in O2'13 Lo 78 in O3'13. 1he onqoinq
suspension of new listings on mainland China continues to
affect IPO activity level in the region. There were lower IPO
acLiviLy on Japanese exchanqes in O3'13, alLer a blockbusLer
O2'13 wiLh Lhe arrival ol 'Abenomics' and O3 beinq a quieLer
quarter historically, this also weighed on total Asian proceeds
in O3'13. AcLiviLy in SouLh Korea and Malaysia solLened,
relecLinq weaker economic and markeL condiLions in Lhe
region, although Singapore was an exception with total
proceeds up 267 on O2'13, Lo USS1.7b, due Lo several larqer
real estate offerings.
ln Honq Konq invesLor senLimenL remains sLable. 1he Honq
Konq sLock exchanqeis expecLed Lo raise USS2.^b in O3'13
from 15 IPOs. Consumer staples, real estate and materials
were the most active sectors by number of deals, while media
and entertainment and consumer staples led by capital raised.
CondiLions are expecLed Lo improve in Lhe lnal monLhs ol
2013 and Lhere is a qrowinq pipeline ol companies planninq
to conduct small and medium sized IPO deals, as well as
larqe lPOs in Honq Konq. We expecL lPOs lrom Lechnoloqy,
media and telecommunications, banking, retail and consumer
producLs secLors in O^'13 and Lhe lrsL hall ol 201^ on
Lhe Honq Konq lPO markeL. HinLs aL sLabilizaLion in China's
economy, coupled with very easy monetary conditions, should
support better activity in this market. More restrictive listing
rules, due Lo come inLo ellecL on 1 OcLober 2013 and 1 April
201^ respecLively, also suqqesL a llinq rush belore Lhe new
listing rules takes effect.
4
As aL 19 SepLember Lhere have been 68 lPOs wiLh LoLal capiLal raised ol USS^.3b. We expecL
anoLher 10 lPOs wiLh expecLed capiLal raised ol USS1.7b by Lhe end ol SepLember.
2013
O1'13 O2'13 O3'13` Total
Number of deals 29 42 30 101
Capital raised
(USSb)
5.1 ^.8 3.0 12.9
Average deal size
(USSm)
176.0 113.^ 101.5 127.9
% Increase /
decrease
2013
JanSep
vs 2012
JanSep
O3'13 vs
O2'13
O3'13 vs
O3'12
Number of deals -22% -29% 37
Capital raised 204% 367 6637
European exchanges IPC activity
O^'13 sLarLs on a more solid looLinq in LMLA, compare Lo
prior quarters. In particular, economic data suggests steady
improvemenL in Lhe UK. ln Lurope, economic condiLions are
stabilizing and regional debt markets are steadying. These
conditions point to better valuations and suggest the coming
quarter could be a better time to go public in the region.
While real estate and technology are expected to be active
industries, with investor appetite for yield ready to support new
listings, there are no real sector clusters apparent in the region.
1he anLicipaLed USS5.5b Royal Mail lPO would be one ol Lhe
largest British offerings in recent years. Meanwhile, in the Middle
East, the Bank of London & the Middle East is set to list on the
NASDAO Dubai exchanqe in OcLober in whaL will be Lhe lrsL
lisLinq in Lhe UniLed Arab LmiraLes in almosL lve years.
Europe is seeing more mid-sized and
large IPOs coming to the market, with
PE-backed IPOs being a key driver,
particularly in the mature economies
ol Lhe UK and Cermany. WiLh economic
conditions stabilizing, market volatility
has subsided and valuations are
improving. The conditions are right for
an increase in lPOs lor O^ and 201^."
Martin Steinbach | EMEIA IPO leader, EY
"
` O3'13 relers Lo pro|ecLed lPO acLiviLy which consisL ol priced lPOs as ol 19 SepLember and
expected IPOs by end of September. Source: Dealogic.
| 11
2013
O1'13 O2'13 O3'13` Total
Number of deals 74 62 78 214
Capital raised
(USSb)
5.5 15.7 6.4 27.5
Average deal size
(USSm)
74.2 252.4 81.6 128.5
% Increase /
decrease
2013
JanSep
vs 2012
JanSep
O3'13 vs
O2'13
O3'13 vs
O3'12
Number of deals 3^7 26% 327
Capital raised 367 -59% -67%
Asian exchanges IPC activity Prospects for new listings in the region are also more
encouraqinq headinq inLo O^'13, wiLh qlobal economic
conditions, led by the developed economies, important for
invesLor conldence. Japan exchanqes expecL up Lo 30 lPOs in
O^'13 O^ is hisLorically Lhe mosL acLive quarLer lor lisLinqs.
1he expecLed deal volume lor Lhe whole ol 2013 is expecLed Lo
exceed Lhe 51 deals wiLh capiLal raised ol USS12.7b in 2012.
Investor appetite is likely to be strong for these offerings on the
back of recent stock price rises. Deal sizes are starting to trend
higher and PE-backed exits are on the rise. Companies expected
Lo lisL in Lhe quarLer include media company RecruiL Holdinqs
Co., Ltd. and electronics manufacturer Japan Display Inc., while
the life sciences and information technology sectors should also
see a number of offerings coming to market.
South East Asian exchanges are prominent in the pipeline of
expected global IPOs, second to North America by volume,
according to Dealogic data. We expect more IPO listings from
emerging markets such as Thailand, Singapore, Malaysia and,
to an extent, Indonesia.
ln Lhe lrsL nine monLhs ol 2013, smaller lPO deals are
prevailing on the Indian IPO market. Bombay Stock Exchange
conducLed Lhree lPOs which raised USS232m alLoqeLher, while
Lhere were 18 smallsized lPOs on Bombay's SML markeL which
raised USS1^.9m alLoqeLher.
Llsewhere in Lhe Asia Pacilc reqion, Lhe New Zealand
government has indicated it will complete a program of state
owned asset sales before next years general election, with the
sale of as much as 49% of Meridian Energy Ltd., the nations
biqqesL power company, expecLed in OcLober 2013.
Nonetheless, uncertainty around this outlook is heightened,
relecLinq invesLor concern on a slowinq raLe ol qrowLh in Lhe
Chinese economy and Lhe impacL ol Lhe US Federal Reserve's
anticipated plan to reduce its bond purchases on emerging
markets. A surge in bearish investor sentiment, and higher
market volatility, would mean fund managers could have
dillculLy compleLinq Lheir invesLmenL mandaLes lor upcominq
offerings. The success of big-ticket listings near-term, such
as Lhe USS1.3b lPO ol China Huishan Dairy aL Lhe end ol
SepLember, will seL Lhe Lone lor Lhe markeL in O^'13. AL Lhe
same time, a move from Chinas regulators to reopen the IPO
market would be a welcomed boost to the Asian IPO market.
Conditions in the region are expected to
improve in Lhe lnal monLhs ol 2013 and
2014 with a growing list of companies
planning to conduct large IPOs in Hong
Konq and Japan, and when Lhe lPO
markets in Mainland China are re-opened.
We also expect more IPO listings from
emerging markets such as Thailand,
Sinqapore, Malaysia and lndonesia."
Ringo Choi | AsiaPacilc SLraLeqic
Growth Markets leader, EY
"
Loose monetary conditions are fueling
investor appetite for equities and Japanese
IPO activity is expected to accelerate in the
coming months as a result, with up to
30 lPOs expecLed in O^'13."
Shinichiro Suzuki | Japan IPO leader, EY
"
` O3'13 relers Lo pro|ecLed lPO acLiviLy which consisL ol priced lPOs as ol 19 SepLember and
expected IPOs by end of September. . Source: Dealogic.
12 |
R
a
p
i
d
-
g
r
o
w
t
h
D
e
v
e
l
o
p
e
d

Developed vs. rapid-growth
Emerging markets
represent 8 of the top
20 IPOs in 2013 Q3.
Three sectors trending
US$24.4b
in capital raised
(47% decrease on 2013 Q2)
197
(4% decrease on 2013 Q2)
Volume and value
deals globally
Maria Pinelli,
Global Vice Chair, Strategic Growth Markets
More than 5,000 companies
globally, including more than
1,000 Asian companies
Pipeline is building
Despite a comparatively quiet third quarter,
global IPO activity is expected to lift through
the remainder of the year and into 2014. The
uplift in activity will vary from region to region
both in terms of timing and pace.
Financial investors dominate
PE- and VC-backed IPOs
drive global deal activity.

PE and VC account for
47% of US IPOs and 19%
of global IPOs by deal
volume.
46%
Health care Energy Real estate
US$4.6b
(20 deals)
Global IPO
highlights
2013 Q3
Commentary
Maria Pinelli,
Global Vice Chair, Strategic Growth Markets
Investors have been encouraged by rising valuations
but moving forward, pricing remain a critical concern.
!n this market, mcre than ever, hrms need strcn
brand names or earnings track records to obtain
appropriate pricing and secure investor support.

Home and away
17 of the top 20 were listed
on their home exchanges.
Home
1 1
US$2.3b
(23 deals)
US$5.6b
(21 deals)

| 13
US tops the leaderboard
US issuers dominated
the global IPO market,
accounting for 45%
of global funds raised.
Top three countries by deal volume
US Greater
China
Number of deals
Asia-Pacihc issuers
ranked 2nd by amount
of global funds raised.
Asia-
Pacihc
30%
41
16
46%
Top three exchanges by funds raised
New York
US$
NASDAQ Singapore
SGD
Envision Healthcare
Holdings Inc.
(US)
US$1.1b US$0.8b
Asia-Pacihc
10
Volume of deals
Central and
South America
North
America
30%
49%
3%
Conhdence continues to build
as the VIX

falls and the

central banks stimuli
continue.
Rising equity markets are a
positive for IPOs MSCI
World Equities Index is up 16%
since the end of 2012.
92% of global IPOs
priced within or above
expectations.
Only 29 postponed
or withdrawn IPOs
in 2013 Q3, 40% down
on 2012 Q3.
Conhdence is growing
VI X
2
Focus on open-price IPOs with deal value above US$50m.
EMEA
18%
Top 3 deals in 2013 Q3
American Homes
4 Rent
(US)
US$0.8b
Frank's
International NV
(US)
US$
Singapore
and UK
2
1
These are prcjected hures. As at 19 September, there have been 10 !PDs that raised US$1.2b.
14 |
Find out more about future IPO prospects
For more information on global IPO performance
by quarLer and year`, and how lPO markeL looks
seL Lo develop in O^'13 and 201^, visiL Lhe LY
Global IPO Center of Excellence:
ey.com/ipocenter
About EY
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services. The insights and quality services we deliver help build trust and
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develop outstanding leaders who team to deliver on our promises to all
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the member firms of Ernst & Young Global Limited, each of which is a
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about our organization, please visit ey.com.
About EYs IPO services
EY is a leader in helping to take companies public worldwide. With
decades of experience, our global network is dedicated to serving market
leaders and helping businesses evaluate the pros and cons of an IPO.
We demystify the process by offering IPO readiness assessments, IPO
preparation, project management and execution services, all of which
help prepare you for life in the public spotlight. Our Global IPO Center of
Excellence is a virtual hub which provides access to our IPO knowledge,
tools, thought leadership and contacts from around the world in one
easy-to-use source.
ey.com/ipocenter
2013 LYCM LimiLed.
All RiqhLs Reserved.
LYC no. CY0637
ED None
This material has been prepared for general informational purposes only and is not intended to
be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for
specific advice.
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` MeLhodoloqy noLes lor lorecasLs: lPO deal volume lorecasL usinq prior perlormance in deal
volumes; median oller prices; qlobal equiLy markeLs; and equiLy markeL volaLiliLy. lPO median
valuaLions lorecasL usinq prior perlormance in median deal values; deal volumes; qlobal equiLy
markets and equity market volatility.