Preqin’s initial public offering pipeline data reveals that there are currently 42 private equity and venture capital-backed companies globally set to list in the coming weeks, seeking to raise USD8.4bn in public offerings.
Twenty-four of these companies are buyout-backed, and a further 18 VC-backed companies have currently filed for an IPO.
In addition, as of 15 October, 19 PE-and VC-backed companies have completed their IPOs or follow-on share sales during the month, raising USD4bn in their offerings. This is in marked contrast to the whole of Q3 2012, when USD6.5bn was raised in public offerings during the whole quarter, indicating that Q4 2012 could see a rebound in IPO activity globally.
However, IPO activity in Q4 2012 will struggle to reach the post-Lehman height of Q2 2011, when 79 PE-and VC-backed public offerings raised USD33.8bn, or the Facebook-led Q2 2012, which witnessed USD27.6bn in public offerings, of which Facebook accounted for USD16bn in its historic public offering.
There are currently 31 North America-based PE-and VC-backed companies in the IPO pipeline, seeking to raise USD6.1bn in listings, making the region the most prominent for forthcoming IPO activity.
In addition, there are currently six European PE-and VC-backed companies that have filed to list in the coming weeks, seeking to raise USD800mn.
There are a further five companies based in the Asia and rest of world region in the IPO pipeline, looking to raise USD1.6bn in public offerings.
Between January and October 2012 to date, North America-based PE-and VC-backed IPOs accounted for 61 per cent of the number and 64 per cent of the value of public offerings globally. This is a marked increased in the prominence of North American IPOs, which since 2009 have typically accounted for less than half of global PE-backed IPO activity.
European public offerings between January and October 2012 accounted for less than 15 per cent of the number and value of all PE-and VC-backed IPO activity. This marks a decline in prominence for European IPO activity, which accounted for over 35 per cent of the value of PE-backed public offerings in 2010 and 2011.
Some 27 per cent of the number and 22 per cent of the value raised in IPOs between January and October 2012 are attributed to companies based in the Asia and Rest of World region.
IPO and follow-on share sales have accounted for 14 per cent of all PE-and VC-backed exits in the year to date, with trade sales accounting for almost two-thirds of all PE-and VC-backed exits.
“We are only in the opening weeks of Q4 2012, yet the USD4bn raised from 19 PE-and VC-backed public offerings has already provided an indication that this quarter looks set to eclipse the lows witnessed in Q3 2012, which saw the lowest levels of PE-and VC-backed IPO activity since 2009,” says Manuel Carvalho, manager, private equity deals at Preqin.
“In addition, there are currently 42 PE-and VC-backed companies which have filed to list in the coming weeks, seeking to raise an aggregate USD8.4bn, providing further hope of a rebound in IPO activity.
“Improved market conditions have led to a wave of IPOs in October 2012, and while nothing is guaranteed in the IPO pipeline, if public market conditions (particularly in the US) remain improved in the coming weeks, then Q4 2012 could well witness continued exit activity via the public markets for PE-and VC-backed companies.”
