2023年Q2全球IPO趋势报告

How

do

you

prepare

nowforthemoment

your

IPO

isready

to

take

flight?EY

Global

IPO

Trends

Q2

2023/ipo/trends

#IPOreportGlobalQ2

2023

IPOactivityYTD2023

IPO

activityMarket

review

and

outlookAmericas05060710141925262728AreaAsia-PacificEurope,

Middle

East,

India

andAfricaCross-border

IPOsMega

IPOsSelected

highlightsPost-IPOperformanceSectorsSpecial

purpose

acquisition

companies(SPACs)33Regional

facts

and

figuresStockexchanges3740Appendix2EY

Global

IPOTrends

Q2

2023Global3EY

Global

IPOTrends

Q22023GlobalSeizing

emerging

IPOopportunities

amid

economic

flux“Against

the

backdrop

of

a

divergent

globaleconomy

and

unpredictablegeopolitical

landscape,

some

stock

markets

arereaching

a

long-time

high

and

enjoyinglow

volatility.

Certaintheme-centric

sectors

such

astechnology

and

cleanenergyaresignallingan

upswing

inIPO

activity.

Large,

well-established

companiesaredemonstrating

enduring

resilience,while

growth

narratives

with

more

realisticand

acceptable

valuation

arebecoming

more

receptive

by

the

market.Inthis

shifting

environment,

companies

need

to

prepare

now

to

be

‘IPO-ready’forany

forthcoming

windows.Paul

GoEY

Global

IPO

Leader4EY

Global

IPOTrends

Q22023Q2

2023IPO

activity“GlobalQ2

2023Q2

2022321%

change-3%Overall

wehaveseenimprovement

in

IPONumber

of

IPOsProceeds

(US$b)Americas31039.0activities

in

the

second

quarter

whencomparedwith

the

firstquarter

of

the

year,

andQ2

isonparcompared

with

the

corresponding

quarter

of2022.40.9-5%Q2

202334Q2

202241%change-17%Number

of

IPOsProceeds

(US$b)Asia-Pacific“6.32.5151%%change-2%Afterrebounding

froma

20-yearlow,

fundraisinginAmericas

experienced

substantial

growth

inQ2,drivenby

a

mega

spin-offand

other

larger-sizedIPOs.Q2

2023190Q2

2022194Number

of

IPOsProceeds

(US$b)EMEIA26.323.412%“Q2

202386Q2

202286%change0%Asia-Pacific

witnesseda

modest

improvement,fueledbymultiple

regional

growth

momentum,whileEMEIA

continued

a

year-over-year

(YOY)contraction

amid

dwindlingmarket

liquidityandcautious

investor

sentiment.Number

of

IPOsProceeds

(US$b)6.415.0-57%Q2

2023

refers

to

thesecond

quarter

of

2023

and

covers

completedIPOs

from

1April

to

19June

2023,

plus

expected

IPOsby

30

June

2023

(forecasted

asof

19June

2023).

Q2

2022

refers

to

the

second

quarter

of

2022

and

covers

completedIPOsfrom

1April

to

30

June

2022.Sources:

EY

analysis,

Dealogic.5EY

Global

IPOTrends

Q22023YTD2023IPOactivity“Whiledeal

numbershave

remainedonthe

samelevelasYTD

2022,

global

IPO

proceeds

raisedwere

downby

morethan

30%

aslessermega

IPOswerelaunched

(YTD

2023:

5;

1H

2022:

11).GlobalYTD

2023615YTD

2022647%

change-5%Number

of

IPOsProceeds(US$b)Americas60.995.6-36%“YTD

202377YTD

202277%

change0%The

US

market

saw

an

uptick

inproceeds,principally

frommorelarger

deals.

The

APACandEMEIA

markets

weredown

byproceeds

raised,reflecting

the

challenge

oflaunching

mega

IPOsagainst

the

tight

market

liquiditysituation

facedinmanycountries.Number

of

IPOsProceeds(US$b)Asia-Pacific9.14.986%YTD

2023371YTD

2022380%

change-2%Number

of

IPOsProceeds(US$b)EMEIA“39.466.1-40%Someemergingmarkets

such

as

India

andYTD

2023167YTD

2022190%

change-12%Indonesia

are

thriving

with

IPO

activities,

as

theybenefitedfromthe

global

demand

for

rich

mineralresources,

the

countries’

vast

populations,growing

unicorns

and

entrepreneurial

small-

andmedium-sizedenterprises

(SMEs).Number

of

IPOsProceeds(US$b)12.424.6-50%YTD

2023

refers

to

the

first

six

months

of2023

and

covers

completedIPOs

from

1January

2023

to

19June

2023,

plusexpectedIPOs

by

30

June

2023

(forecasted

asof

19June

2023).

YTD

2022

refers

to

the

first

six

months

of2022

andcovers

completed

IPOsfrom

1January

2022

to

30June

2022.Sources:

EY

analysis,

Dealogic.6EY

Global

IPOTrends

Q22023Global

IPO

market

–YTD2023review►Despite

low

marketvolatility

and

strong

stockexchange

performance

in

certain

majorfinancial

markets,

YTD2023

saw

more

than600

IPOsraising

approximatelyUS$60b,

a

contraction

of

5%by

volumeand

36%

by

valueY

OY.

These

modest

results

continue

toreflect

slowerglobal

economic

growth,tight

monetary

policies

andheightenedgeopolitical

tensions.

Highinterestratesand

poor

post-IPO

share

priceperformance

have

also

pushedinvestors

tolookforotherinvestment

asset

classes.►►32%

of

IPOsin

YTD2023

were

trading

belowtheir

offerpricesas

of

19

June

2023

—comparedwith

45%

forthoselisted

in

2022,

reflecting

lowerand

more

sustainable

valuationsforcompanieslisted

in2023.Shareof

global

IPOproceeds

by

theAmericasregion

has

plungedfrom

38%in2021

to

a

low

of

5%in2022,before

bouncing

backto15%

in

YTD2023.

The

GreaterChina

regioncontinues

todominateglobal

IPOactivities.Indonesia

hasshown

strong

momentum,

benefitingfromglobal

demand

for

its

rich

mineral

resources

(needed

fortheelectric

vehicle(EV)sector),

its

vastpopulation

and

fast-growingunicorns.►Falling

commoditypricesand

energy

IPO

proceeds

have

allowed

technology

to

reclaimtheleadingposition.Meanwhile,IPOsfromtheindustrialssector

are

swiftly

risingin

Mainland

China,

Indiaand

theUS,securingthesecond

spot

by

bothdeal

number

and

proceeds.

Technology,

and

health

and

life

sciences,

thetwotypical

growthsectors,

have

seen

thehighest

number

of

IPOwithdrawals

in

recent

years,

reflecting

thechallengeof

arriving

atmutually

acceptable

valuationsbetweencompaniesand

investors.►Cross-border

activity

has

seen

arise,

fueledby

aflurry

of

Chinesecompany

listings

on

theUS

market

—albeit

withmuchsmaller

deal

sizecompared

tothosefrom

two

yearsago

—as

well

as

steadyinfluxintotheSwiss

StockExchange,

atrendthatstarted

in

thesecond

halfof

2022.YTD

2023

refers

to

the

first

six

months

of2023

and

covers

completedIPOs

from

1January

2023

to

19June

2023,

plus

expected

IPOsby

30

June

2023

(forecasted

asof

19June

2023).

YTD

2022

refers

to

the

firstsixmonths

of2022

and

covers

completed

IPOsfrom

1January

2022

to

30

June

2022.Sources:

EY

analysis,

Dealogic.7EY

Global

IPOTrends

Q22023GlobalIPO

market

–2023outlook►With

interestrate

hikesexpectedtoendthis

year,

and

theChineseGovernment

set

to

introduce

further

economicstimuli,

we

predict

better

IPOmarket

conditions

in

thenext

6-12months

on

thebackof

astrong

and

high-qualityIPOpipeline.►Recent

improvements

in

market

sentiment

couldbeasign

for

more

US

IPOactivity

fromlate

2023

or

2024.

Thestrong

momentuminIndonesiashall

continue,

bolsteredby

thecountry’srich

mineral

resources.

There

are

similaroptimistic

outlooks

forJapan,

which

has

reacheda33-yearstockmarket

high,

and

China

asits

economycontinues

to

recover.►►►The

European

IPOmarket

couldbegin

toseearebound

if

inflation

risks,

and

hence

theinterest

rate

hike,can

becontained,

thusreleasingadditional

market

liquidity.

DespiteMENA

recording

aYOY

declinein

IPOactivityfollowing

thedrop

in

global

energy

pricesover

thelast

year,

theregion

still

boaststwo

of

thetop

10global

IPOsin

YTD.Indiais

another

stand-out

market,showcasing

strong

growthin

IPO

volume,

especially

from

SMEs.Investors

will

continue

tobemore

selective,

orienting

towardcompanies

with

solid

fundamentals

and

proven

trackrecords.

Investors

are

likely

tobe

more

interested

incompaniesfromthetechnology

sector,

environmental,

socialand

governance

(ESG)concept

stocks

and

othersthat

can

demonstrate

theadoption

of

artificial

intelligence

(AI)application

into

thebusiness

models

and

operations.Aftertheone

megaIPOdebutin

theUS,

which

hasoutshone

othertraditionallistingsthis

year,

weexpect

morelargecorporate

spin-offs

andcarve-out

listingswill

take

placein

othermajormarkets,

as

companiesseektoincreaseshareholders’

value.YTD

2023

refers

to

the

first

six

months

of2023

and

covers

completedIPOs

from

1January

2023

to

19June

2023,

plus

expected

IPOsby

30

June

2023

(forecasted

asof

19June

2023).

YTD

2022

refers

to

the

firstsixmonths

of2022

and

covers

completed

IPOsfrom

1January

2022

to

30

June

2022.Sources:

EY

analysis,

Dealogic.8EY

Global

IPOTrends

Q22023Area9EY

Global

IPOTrends

Q22023AmericasThe

slow

pace

of

IPOs

hascontinued

in

1H

2023,

but

moreconstructive

market

conditions

arebeginning

to

emerge“Now

isthe

time

to

activate

your

IPOplans

and

build

muscle

around

operating

asapublic

company.

Preparation

iskeyto

capitalize

on

potentially

fleetingmarketwindows

with

confidence.Rachel

GerringEY

Americas

IPO

Leader10

EY

Global

IPOTrends

Q22023Amid

continued

slow

pace,

large

deals

drive

uptick

inUSIPO

proceedsAll

amounts

in

US$YTD

2023Canada’s

Toronto

MainandVenture

Exchange*YOYYOYStock

exchangesby

total

proceedsSectorsby

number

of

IPOsIPOslargest

by

proceeds77IPOs$9.1bProceedsNumber89%Proceeds▲▲38%0%86%9US

(NYSE)11

IPOs

|

$5.9bUnited

StatesHealth

and

lifesciences13

IPOs

|

$1.1bKenvue

Inc.$4.4b

|

ConsumerproductsNYSEMay1Equity

indices

(as

of

19

June

2023)$0.2$0.1YTD

2023YTD

2022Dow

JonesS&P

500IndustrialNASDAQComposite+30.8%Mexican(BMV)NumberProceeds▲100%

▲100%Average+14.8%+3.5%United

StatesUnited

StatesUnited

StatesUS

(NASDAQ)53

IPOs

|

$2.9bUnited

StatesIndustrials12

IPOs

|

$0.9bNextracker

Inc.$0.7b

|

TechnologyNASDAQ10Ibovespa+8.2%S&P/TSX

Composite

IndexFebruary$0.0$0.2+3.0%BrazilCanadaYTD

2022YTD

2023+

or

–

indicates

change

since

31

December

2022US’s

NASDAQ

andNYSENumber▲

25%Proceeds▲

87%Volatility

index

(as

of

19

June

2023)Mexican

(BMV)1

IPO|

$0.2bMexicoTechnology12

IPOs

|

$0.9bACELYRIN

Inc.$0.6b

|

Health

and

life

sciencesNASDAQMay64Chicago

Board

Options

Exchange‘s

(CBOE)

Volatility

Index(VIX®)51•

Current:14.19$4.7$8.8•

YTD

average:

18.93•

10-year

average:

18.09YTD

2022YTD

2023Number

of

IPOsProceeds

(US$b)YTD

2023

refers

to

the

first

six

months

of2023

and

covers

completed

IPOs

from1

January

2023

to

19

June2023,

plus

expected

IPOs

by

30

June2023

(forecasted

asof19

June2023).

YTD

2022

refers

to

the

first

six

months

of2022

and

covers

completed

IPOs

from1

January

2022

to

30

June2022.

Sources:

EY

analysis,

Dealogic.There

were

no

IPOs

onBrazil’s

Stock

Exchange

in

YTD

2023

and

2022*

Canadian

IPO

activity

excludes

IPOs

onCanadian

Securities

Exchange

(CSE).11

EY

Global

IPOTrends

Q22023Cross-border

deals

comprise

half

of

theUSlistingsinYTD

2023All

amounts

in

US$YTD

2023US’s

NASDAQ

and

NYSECross-border

IPOs

listings

on

the

US

exchangesTop

countries/regions

of

origin64YOY$8.8bYOYIPOsProceedsCountryNumber

of

IPOsProceeds

(US$m)▲

25%▲

87%Greater

ChinaCanada193$443$310Number

ofIPOsProceeds

(US$b)416Israel2$297224Others9$137168YTD2023

total33$1,1879064$8.8$50.72019$86.22020$155.82021$8.6Cross-border

IPOs

listings

on

the

US

exchanges

as

a2022YTD

2023percentage

of

total

US

IPOsPercentage

of

all

US

issuersUS

performanceUS

IPO

pricing

and

performance

YTD

2023First-day

average

return52%Share

price

performance

since

IPO(a.k.a.

offer-to-current)39%32%28%26%US

markets+19.4%+17.9%+

or

–

indicates

change

compared

with

offer

price

at

IPO2019202020212022YTD

2023First-day

and

current

average

returns

are

mean

returns

of

issuers

that

started

trading

by

19June

2023and

raised

more

than

US$30m.YTD

2023

refers

to

the

first

six

months

of2023

and

covers

completedIPOs

from

1January

2023

to

19June

2023,

plus

expected

IPOsby

30

June

2023

(forecasted

asof

19June

2023).Sources:

EY

analysis,

Dealogic.12

EY

Global

IPOTrends

Q22023Americas

IPO

market

reviewand

outlookAll

amounts

in

US$

unless

otherwise

statedAmericasUnitedStates•

Americas

IPOactivity

hascontinued

its

slow

pace

in

1H

2023,

with

just77

dealspriced

throughJune

30,

in

line

with

1H

2022’s

mutedlevels.

However,

theUSexperienced

anuptick

in

proceeds

driven

primarily

by

afewlarge

deals.•

US

IPOs

raised

US$8.8b

via

64

IPOs,

representing

increases

of

87%

and

25%respectively

over

the

comparable

2022

period.•

Therise

in

US

volume

was

largely

driven

by

a

single

US$4.4b

IPO

in

May,

accountingfor

nearly

half

of

total

USIPO

proceeds

YTD.

The

offering,

which

was

the

largest

USIPO

since

November

2021,

was

up

22.3%

on

its

first

day

of

trading.•

Still,

it

may

taketheIPOmarket

longer

torecoverthan

many

market

participantsforecasted

atthebeginning

of

theyear.Theunforeseenbanking

crisis

in

1H

2023drove

uncertainty

in

the

markets

butcontagion

fears

seem

tohave

faded,

yieldingoptimism

for

moreactivity

in

the

back

half

of2023

and

into2024,

given

themoreconstructivemarket

backdrop.•

With

some

ofthe

market

challenges

ofthe

past

few

years

as

a

backdrop,

corporateshave

been

actively

exploring

ways

tounlock

value

and

drive

shareholder

returns.Two

ofthe

topfive

largest

US

IPOs

in

Q2

2023

were

carve-outs

from

corporates,with

a

number

ofsimilar

transactions

in

the

pipeline.•

FortheAmericas

IPOmarkettobegin

toreturntomorenormalized

levels,thefirstwave

of

IPOswill

likely

needtocometomarketat

reasonable

valuations,price

well

compared

totheirmarketing

ranges

and

trade

well

in

theaftermarket.•

Despite

the

slowdown

in

the

US

IPO

market

in

recent

quarters,

many

of

theheadwinds

that

contributed

tothe

dearth

ofactivity

have

begun

tosubside

in

1H2023.

Equities

have

rebounded

from

2H

2022

lows,

inflation

may

have

peaked,interest

rate

increases

could

be

nearing

an

end

and

volatility

has

subsided

to

pre-COVID

lows.•

IPOaspirants

should

be

ready

tocapitalize

onpotentially

fleeting

marketwindowsas

they

arise.

Preparation

is

critical,

particularly

in

regard

to

public

companyreadiness,

and

will

leave

issuerswith

moreflexibility

and

greater

optionality.•

The

SPAC

market

continues

tobe

challenged

with

closed

deals

generally

tradingpoorly

and

an

uncertain

regulatory

outlook.

There

are

currently

more

than

200SPACs

seeking

a

merger

partner,

and

negotiations

between

sponsors

and

targetshave

become

increasingly

complex

with

renegotiations

and

highly

structured

dealscommonplace.Canada•

IPO

volumes

have

slowed

to

a

trickle

in

Canada

with

just

11

deals

pricing

in

1H2023,

sharply

down

from

2022’s

26

deals

over

the

same

period.

Of

the

11

deals

in1H

2023,

only

one

was

listed

on

TSX,

while

the

remaining

deals

were

on

theCanadian

Securities

Exchange.•

In

light

ofthese

challenges,

several

trends

have

emerged

across

the

more

than

80SPAC

mergers

announced

so

far

in

2023:

(i)

deal

sizes

are

generally

smaller,

withmedian

enterprise

value

per

announced

merger

at

just

US$280m

vs.US$540m

in2022;

(ii)

overseas

targets

are

more

in

focus

than

ever

with

more

than

40%

ofcompleted

and

announced

de-SPACs

involving

a

non-US

target;

and

(iii)

sponsoreconomics

are

more

negotiable

with

redemption

mitigation

mechanismsproliferating.Brazil•

TheIPO

market

in

Brazil

has

not

seen

any

listings

since

September

2021,

with

littlesign

of

a

recovery.

While

market

volatility

has

subsided

and

equities

have

surged,the

political

climate

remains

uncertain

and

market

participants

have

taken

a

“wait-and-see”

approach.YTD

2023

refers

to

the

first

six

months

of

2023

and

covers

completedIPOs

from

1January

2023

to

19June

2023,

plus

expected

IPOsby

30

June

2023

(forecasted

asof

19June

2023).

YTD

2022

refers

to

the

firstsixmonths

of

2022

andcovers

completed

IPOsfrom

1January

2022

to

30June

2022.Sources:

EY

analysis,

Dealogic.13

EY

Global

IPOTrends

Q22023Asia-PacificIPOactivity

stays

resilient

in

the

fa

ce

of

volatility“A

rebound

in

IPO

activity

is

on

the

horizon

–with

growing

momentum

and

largerdealssetto

break

through

the

constraints

of

liquidity

and

modest

valuations.Steered

by

the

consistent

dynamism

of

ASEAN

nationsand

Japan,

alongside

areinvigorated

marketinChina,

the

region

stands

poised

for

anupswing

indeal

flow.Ringo

ChoiEY

Asia-Pacific

IPO

Leader14

EY

Global

IPOTrends

Q22023Robust

growth

inASEANand

Japan

enlightens

Asia-Pacific

in

1H,asMainlandChina

gearsup

for

heightened

activityin

2HAll

amounts

in

US$YTD

2023Stock

exchangesSectorsIPOsASEANSouthKoreaYOYYOYby

total

proceedsby

number

of

IPOslargest

by

proceedsNumber▲

26%Proceeds▲

31%Number▲Proceeds371IPOs$39.4bProceeds▲10%94%▲▲2%40%Shanghai

(SSE

andSTAR)62

IPOs

|

$17.3bMainland

ChinaTechnology87

IPOs

|

$11.4bNexchip

SemiconductorCorp

Co.,

Ltd.$1.9b

|

TechnologyShanghai

(STAR)May296582Equity

indices

(as

of

19

June

2023)26$11.5$2.5$3.3$0.7Hang

SengShanghaiComposite+5.4%NikkeiSemiconductorManufacturingYTD

2022YTD

2023YTD

2022YTD

2023+0.7%Hong

Kong+27.9%JapanElectronics

ShaoxingCorporation(SMEC)$1.8b

|

TechnologyShanghai

(STAR)MayMainland

ChinaAustralia

andNewZealandJapanNumberProceedsNumber▲

14%Proceeds▲257%Shenzhen

(SZSE

andChinext)70

IPOs

|

$12.6bMainland

ChinaIndustrials85

IPOs

|

$9.7b▲▲73%81%ASXKOSPI5942Shaanxi

EnergyInvestmentCo.,

Ltd.$1.0b

|

EnergyShenzhen(SZSE)April+3.6%Australia+16.7%South

Korea3716$0.6$0.5$1.9$0.1+

or

–

indicates

change

since

31

December

2022YTD

2022YTD

2023YTD

2022

YTD

2023CSI

Solar

Co.,

Ltd.$1.0b

|

TechnologyShanghai

(STAR)JuneVolatility

index

(as

of

19

June

2023)Hong

Kong

(MainBoard

and

GEM)29

IPOs

|

$2.3bHong

KongMaterials51

IPOs

|

$4.8bNumber▲

8%ProceedsGreater

China▲35%The

HSI

Volatility

Index

(VHSI)•

Current:

22.06205ZJLD

Group

Inc.$0.7b

|

ConsumerstaplesHong

Kong

Main

BoardApril•

YTD

average:

24.54•

10-year

average:

20.73190$51.0$33.4YTD

2022YTD

2023YTD

2023

refers

to

the

first

six

months

of2023

and

covers

completed

IPOs

from1

January

2023

to

19

June2023,

plus

expected

IPOs

by

30

June2023

(forecastedas

of19

June2023).

YTD

2022

refers

to

the

first

six

monthsof2022

and

covers

completed

IPOs

from

1January

2022

to

30

June

2022.Sources:

EY

analysis,

Dealogic.Number

ofIPOsProceeds

(US$b)15

EY

Global

IPOTrends

Q22023Mainland

China

and

Hong

Kong

IPOmarket

highlightsAll

amounts

in

US$YTD

2023ShanghaiStock

ExchangeShenzhen

Stock

ExchangeBeijing

Stock

Exchange*Hong

Kong

Stock

ExchangeYOYYOYYOYYOYYOYYOYYOYYOY0%62IPOs$17.3bProceeds70IPOs$12.6bProceeds42IPOs$1.2bProceeds29IPOs$2.3bProceeds▲▲▲▲10%47%14%18%▲121%▲156%▲

45%23324983162144232154187123971594262751129007770$12.6$9.3$18.3$26.32021$31.7$0.02019$0.02020$0.3$2.5$40.42019$51.52020$42.62021$12.72022$2.3$27.12019$49.62020$56.72021$54.4$17.3$1.2201920202022

YTD

202320212022

YTD

2023YTD

20232022

YTD

2023Shanghai

(MainBoard

and

STARMarket)Shenzhen

(Main

Board,

SME

andChiNext)*was

launched

in

November

2021Hong

Kong

(MainBoard

andGEM)Number

of

IPOsProceeds

(US$b)Number

of

IPOsProceeds

(US$b)Number

of

IPOsProceeds

(US$b)Number

of

IPOsProceeds

(US$b)To

psectorsTo

psectorsTo

psectorsTop

sectorsby

number

of

IPOsby

number

of

IPOsby

number

of

IPOsby

number

of

IPOsIndustrialsIndustrialsIndustrialsTechnology21

IPOs

|

$4.1b26

IPOs

|

$4.6b16

IPOs

|

$0.5b6

IPOs

|

$0.3bTechnologyMaterialsTechnologyConsumer

products20

IPOs

|

$8.4b11

IPOs

|

$1.5b9

IPOs

|

$0.2b5

IPOs

|

$0.5bHealth

and

life

sciencesTechnologyMaterialsIndustrials6

IPOs

|

$1.6b9

IPOs

|

$1.7b6

IPOs

|

$0.2b5

IPOs

|

$0.2bYTD

2023

refers

to

the

first

six

months

of2023

and

covers

completedIPOs

from

1January

2023

to

19June

2023,

plus

expected

IPOsby

30

June

2023

(forecasted

asof

19June

2023).

2019

to

2022

included

full

year

data.Sources:

EY

analysis,

Dealogic.16

EY

Global

IPOTrends

Q22023Asia-Pacific

IPO

market

review

and

outlookAll

amounts

in

US$

unless

otherwise

statedAsia-PacificMainland

China

andHongKong•

In

the

first

half

of

2023,

Asia-Pacific

has

maintained

its

position

as

the

globalleader

in

IPO

volume

and

value,

with

an

approximate

60%

share.

However,

theregion

saw

371

IPOs

raising

US$39.4b

in

this

period,

a

YOY

fall

of

2%

and

40%respectively.

Half

ofthe

top

10

global

IPOs

were

from

Mainland

China

and

one

wasfrom

Japan.

Technology,

industrials

and

materials

are

the

dominant

sectors

forlistings.•

In

YTD

2023,

Mainland

China

and

Hong

Kong

recorded

203

IPOs

raisingUS$33.4b,

a

YOY

volume

increase

of

7%

and

value

decrease

of

35%.

Given

theregion

has

no

mega

Chinese

Foreign

Private

Issuers

(FPIs)

returning

from

the

USthis

1H,

the

average

deal

size

reduced

by

39%

Y

OY.

There

were

three

local

megaIPOs

so

far

–

compared

with

two

in

YTD

2022,

excluding

the

FPIs.•

As

expected,

with

the

full

implementation

of

the

registration

system,

instances

ofnegative

first-day

returns

have

increased

with

the

STAR

market

and

ChiNextaccounting

for

most

ofthese

deals.•

Mainland

China

aims

to

rejuvenate

its

economy

post-COVID

lockdown.

Yet,

thelingering

economic

impact

of

the

pandemic,

dampened

consumption

power,manufacturing

and

export

challenges

and

heightened

US-China

tensions

havecreated

uncertainty

for

IPO

prospects.

As

a

result,

many

large

IPOs

are

waiting

onthe

sidelines.

Hong

Kong

has

seen

reduced

listing

activity

in

1H,

largely

due

tointerest

rate

increases

and

weak

equity

prices

ofcompleted

IPOs

in

the

last

two

tothree

years.

However,

listing

rules

like

Chapter18C

were

introduced

towelcomelistings

ofspecialist

technology

and

other

innovative

and

progressive

companies.•

Even

amid

lackluster

stock

market

performance

and

a

challenging

macroeconomicenvironment,

A-share

IPOs

are

projected

tomaintain

a

healthy

momentumthroughout

2023.

This

resilience

is

underpinned

by

governmental

support

and

arobust

pipeline.•

With29

IPOsand

$2.3b

in

proceeds

in

1H

2023,

Hong

Kong’s

IPO

activity

wassubdued

due

topoor

market

conditions

in

the

first

half

of

2023.

Thecombinationoflower

issuance