I did a bit of research on the US and Chinese IPO markets before my interview with Emily Chang on BloombergTV last week, and thought I would share the data here. Special thanks to Mike Barker and my friends at investment bank Morgan Keegan for reviewing and fact-checking the data for me. All data is accurate as of October 24th, 2011.
- The value of IPOs increased 14% to $114B in the first half of this year. However, volume dropped considerably in Q3, with only $27.6B raised, putting us at 8% below last year’s total YTD.
- The average US market IPO is down 8% for the year, and 2/3 of listings are below their issue price. Some are down as much as 60%. (NOTE: many tech IPOs experienced a strong October, especially towards the end of the month, and the bulk of these companies are also beating analyst estimates handily)
- There were 178 IPOs in the US in 2010. 38, or roughly 21% of these, were by Chinese companies.
- The Chinese domestic market saw 345 IPOs in 2010, raising $71B. There have been 232 YTD 2011.
- Chinese companies (by nationality, not exchange) have accounted for 31% of global IPO value this year, vs 21% for the US.
- As of the beginning of October, there were 166 companies on file in the US. 78 deals have been pulled or delayed YTD.
- Pre-Internet bubble (late 90’s), there were on average 300-500 IPOs per year in the US. Post (2001-2009), we’ve seen on average 125 per year.
- VC investment in China hit $3.4B in Q3 2011, a record. By contrast, US VC investment for the quarter was $8.4B. 1/3 of the VC funding in China went to Internet companies, vs 1/6 in the US.