China overtakes the US in tech IPOs during third quarter
PwC cautions that the trend of smaller tech companies going public during the quarter may signal ‘low-value listings’ globally
China posted the highest number of technology initial public offerings (IPOs) during the third quarter of this year with nine companies raising funds to the tune of US$611 million, compared with just six during the same period in the United States, a PricewaterhouseCoopers report said.
According to the “PwC Global Technology IPO Review Q3 2016” there was a “burst in IPO momentum” in the third quarter following increased confidence in the country’s economy.
“Nevertheless, the absence of large floats in major markets is indicative of a technology IPO market that is open, though not necessarily strong. In this scenario, the rising number of IPOs has stemmed largely from growth of low-value listings over the third quarter,” said Wilson Chow, PwC’s leader for technology, media and telecommunications sector for China/Hong Kong.
On a global basis, 20 technology companies raised funds of US$5.38 billion during the third quarter, a 264 per cent increase from the previous quarter, PwC said.
The absence of large floats in major markets is indicative of a technology IPO market that is open, though not necessarily strong
Europe recorded three technology IPOs during the period and was also home to the largest listing of the year to date, with Nordic payments company Nets rasing US$2.4 billion. The six technology IPOs in the US raised combined funds of about US$627 million, PwC said.
