Supported by the improvement in equity returns, global IPO issuance rebounded in 2013. Annual IPO proceeds increased 37.5% to $137 billion. North America was the largest contributor to the improvement in IPO issuance as increased activity in the United States led to a 28.9% gain in proceeds raised in the region. Europe and Latin America also experienced a jump in IPO proceeds after being hindered in recent years by sovereign debt concerns and economic instability while IPO issuance in Asia stagnated due to the complete shutdown of China’s A-Share IPO market. Once again, financial companies raised more IPO proceeds than any other sector while the consumer sector had raised its highest level of annual proceeds since 2006, thanks to offerings by Japanese soft drink distributor Suntory Beverage & Food (2587.JP) and global hotel chain Hilton Worldwide (HLT). Global IPO returns were also impressive in 2013; the average IPO generated a 19.6% return from their offer price while the FTSE Renaissance Global IPO Index vastly outperformed global equity market benchmarks with a 31.7% return. With issuance accelerating and returns strengthening, we expect to see global IPO markets continue to gain momentum and grow in 2014.
View our 2013 Global IPO Annual Review.
