IPO Watch

Asia 2014

US$243bn
IPO and FO proceeds raised in 2014
US$630bn proceeds raised from 2012
to 2014

583 IPOs
Companies listed in 2014
1,494 IPOs from 2012 to 2014

1,710 FOs
Further offers in 2014
4,856 further offers from 2012 to
2014

www.pwc.com
 About IPO Watch Asia

IPO Watch Asia provides an overview of all new primary market equity IPOs and FOs in which capital was raised on Asia’s
principal stock markets (including exchanges in Greater China, Singapore, Australia and New Zealand, Vietnam, Korea,
Thailand, Indonesia, Japan, Malaysia and the Philippines). The analysis covers companies which were listed on these markets
up to 31 December 2014. For comparability purposes, all figures in this report have been translated into United States Dollars
(USD) at the applicable closing exchange rate at the end of each year. All market data is sourced from Dealogic and the stock
markets themselves unless otherwise stated and has not been independently verified by PwC.

This report has been prepared by the China/Hong Kong Capital Market Services practice of PricewaterhouseCoopers.

2 IPO Watch Asia 2014

Contents

Forward 4

Summary of key findings 5

1. Proceeds of Asian IPOs and FOs 2012-2014 7

2. Asian IPO data by exchange 8

3. Asian FO data by exchange 8

4. Top 10 IPOs by proceeds in 2014 and 2013 9

5. Analysis by sector 10

PwC 3
 Foreword
Welcome to the Asia IPO Watch 2014, PwC’s
publication exploring equity market trends across the
Asia-Pacific region.
Reflecting the integrated nature of We hope you find the insights of our
capital markets, we have broadened analysis of Asian equity capital
our discussion beyond initial public markets to be both interesting and
offerings (IPOs) to include the equity useful.
follow-on market, or further offers
(FOs). Our goal is to provide insights
relevant to potential investors or
those businesses undertaking an IPO
or FO transaction in the near future.

Our publication analyses equity

capital market (ECM) transactions
that occurred during 2012-2014 on
exchanges throughout Asia. In the
global arena, we believethat Asia is
poised to continue its significant
contribution to global ECM activity
in 2015.

Kennedy Liu

Head of China/HongKong
Capital Market Services
PwC

4 IPO Watch Asia 2014

Summary of key findings
Overview of the IPO markets in Asia
It has been a buoyant year for IPOs in
Asia. IPO activity in Asia stood at
US$82.5bn raised via 583 IPOs in
2014, compared to US$58.4bn via 429
IPOs in 2013. During 2014, Asia
accounted for 24% of the total amount
of money raised and 40% of the
number of deals.
The IPO of Medibank Private (raising
US$4.9bn on ASX) was the largest
Asian IPO of 2014. Strong activity on
HKEx during 2014 resulted in the 2nd
and 3rd largest Asian IPOs of 2014:
Dalian Wanda Commercial Properties
and China’s biggest atomic energy
producer CNG Power raising US$3.7bn
and US$3.6bn, respectively. The top
five IPOs in Asia is complemented by
the listings of Hong Kong electric
utility HK Electric Investments (raising
US$3.1bn on HKEx in January),
smartphone and tablet screen maker
Japan Display (raising US$3.1bn on
Tokyo Stock Exchange in March) and
pork producer WH Group (raising
US$2.4bn on HKEx in July).
US$4.9bn and was Australia’s biggest
IPO for nearly 20 years. Natural
resource IPOs continued to be
relatively weak reflecting commodity
prices dropping to only around 10% of
all IPO activity. The remaining IPOs
came from a diverse range of industries
including real estate, financial
services, healthcare and consumer
services.
The number of IPOs in Japan increased
from 60 in 2013 to 83 in 2014,
exceeding levels experienced prior to
the financial crisis. The IPO funds
raised in Japan increased marginally
from US$10.2bn in 2013 to US$11.5bn
in 2014. The IPO of Japan Airlines in
2012 raised US$8.5bn alone whereas
the largest IPO in Japan in 2014 was
the US$3.2bn raised by Japan Display.
The number of IPOs in Singapore
(including Main Board and Catalist)
increased from 25 in 2013 to 27 in
2014. IPO funds raised decreased from
US$4.9bn in 2013 to US$2.6bn in 2014.
presidential elections. Indonesia saw
both a 40% decline in the IPO number
and 60% decline in funds raised,
which stood at 19 IPOs and US$0.7bn
funds raised respectively in 2014 amid
political and global uncertainty. Many
companies have tentatively scheduled
their public offerings for after the
election. Furthermore, global
sentiments are also not conducive in
2014 as the global economic recovery
can be labelled sluggish and the US
Federal Reserve’s monetary tightening
leads to capital outflows from
emerging markets.
Malaysia continued its development as
a capital market but, as a result of a
number of delayed IPOs, recorded a
decrease in IPO funds raised from
US$2.6bn in 2013 to US$1.3bn in 2014.
The number of IPOs fell from 17 to 15.
IPO activity in the Philippines
remained stable with funds raised
improving from US$0.2bn in 2013 to
US$0.3bn in 2014.

Robust IPO activity in Greater China
continued to make strong contribution
to Asian IPO activity in 2014. The
number of IPOs in Greater China
increased from 144 in 2013 to 268 in
2014. The amount of funds raised from
IPOs increased by 92% from
US$22.6bn in 2013 to US$43.4bn in
2014. This increase in IPO volumes and
funds raised was primarily due to the
resumption of new listings on the
Mainland stock exchanges and an
increase in IPO volumes in Hong Kong.
Australia and New Zealand
experienced a 28% increase in IPO
volumes compared to 2013 together
with a 62% increase in funds raised.
Australia and New Zealand saw 86
IPOs in 2014 raising US$16.2bn,
including the third largest IPO globally
as Medibank Private raised US$4.9bn
on ASX. In 2013, only 67 IPOs were
executed raising a total of US$10bn.
The increase in funds raised was
driven by the privatisation of
Medibank Private which raised
The Korea Stock Exchange continued
to attract IPOs in 2014. Total money
raised in 2014 in Korea stood at
US$4bn via 39 IPOs (2013: US$1.2bn
via 36 IPOs). The successful IPO of
Cheil Industries, Samsung Group’s de
facto holding company (raising
US$1.4bn on KRX), became the largest
Korean IPO of the year.
Due to unfavourable market conditions
brought about by Thailand’s political
troubles, Thailand’s IPO activities have
slowed in 2014, with the funds raised
slashing by half from US$5.2bn in
2013 to US$2.6bn in 2014 despite the
transaction volume remained stable at
41 IPOs in 2014. The months-long
political unrest has delayed fund-
raising deals, given that some
companies in the pipeline are opting to
hold off until Thailand’s political
situation has improved.
Meanwhile in Indonesia, 2014 was a
year marked by legislative and

PwC 5
 Market outlook
As economic recovery continues in
many markets and easing monetary
conditions are in place to drive investor
confidence, it is expected that IPO
activity will maintain its strong
momentum in 2015. In particular,
confidence has been bolstered by
favourable government policy in
Greater China following the
implementation of the long-awaited
Shanghai-Hong Kong Stock Connect.
With a solid pipeline of IPO-ready
businesses across a broad range of
markets in Asia-Pacific and from
multiple sectors, a significant uptick of
IPOs is expected in 2015 from the
financial, real estate, health care,
technology and consumer products
and services sectors.

6 IPO Watch Asia 2014

1. Proceeds of Asian IPOs and FOs 2012-2014
Overall ECM Activity, 2012-2014
250 3,000 • Over the past three years there have
161
been 6,350 ECM transactions raising
2,800 US$630bn.
200 2,600 • Over this period money raised by
143
companies on the exchanges in
125 2,400 Greater China, Australia and New
2,293 2,200 Zealand, and Japan represented 83%
150
of capital raised and 81% of
2,103
2,000 transaction volume.
1,954 83
1,800 • In 2014, money raised by companies
100
on other Asian exchanges decreased
61 1,600 to US$36bn by 4% albeit the
58
1,400 transaction volume increased by 3%.
50
• During 2014, ECM activity overall
1,200
increased by 9% in terms of volume
0 1,000 of transactions and 21% in terms of
2012 2013 2014 capital raised to US$243bn from
FO Money raised (US$bn) IPO Money raised (US$bn) Number of IPOs+FOs US$202bn in 2013.
Source:
• HK/China from Capital Market Statistics Report prepared by HK/China
• Other regions based on Dealogic • Over the past three years there have
been 1,494 IPOs raising US$201bn.
Over this period,
Asian IPOs, 2012-2014
–– Money raised from IPOs by
90 700
companies on the exchanges in
Greater China, Australia and New
80 583 Zealand, and Japan represented
600 78% of capital raised and 70% of
83
70 482 transaction volume; and
500
60 61 –– Average proceeds raised per IPO
429 were US$135m (US$150m on the
50 400 exchanges in Greater China,
58
Australia and New Zealand, and
40 300 Japan and US$99m on other Asian
exchanges).
30
200 • In 2014, funds raised in IPOs by
20 companies on the exchanges in
100 Greater China, Australia and New
10 Zealand, and Japan increased by
66% to US$71bn from US$43bn in
0 0
2012 2013 2014 2013, which is in line with the
increase in transaction volume by
IPOs Money raised (US$bn) Number of IPOs
61% to 437 IPOs from 271 IPOs in
2013.
• In 2014, money raised by companies
on other Asian exchanges decreased
to US$11bn by 26% from US$16bn in
2013 while the transaction volume
over this period decreased by 8%.
• During 2014, IPO activity overall
increased from 429 IPOs to 583 IPOs
by 36% in terms of volume of
transactions and 41% in terms of
capital raised to US$82.5bn from
US$58.4bn in 2013.

PwC 7
 Asian FOs, 2012-2014

• Over the past three years there have

180 1,800
been 4,856 further offers raising
1,710 US$429bn.
160 1,700
1,674 161 • Over this period, money raised by
140 1,600 companies on the exchanges in
143 Greater China, Australia and New
120 125 Zealand, and Japan represented 85%
1,500
1,472 of both capital raised and transaction
100
1,400 volume.
80 • In 2014, money raised in FOs by
1,300 companies on other Asian exchanges
60 increased by 12% in terms of capital
1,200 raised and 10% in terms of
40
transaction volume.
1,100
20 • Overall, FO activity during 2014
increased to US$160.5bn from
0 1,000
2012 2013 2014 US$143.1bn in 2013 by 12% in terms
of capital raised and increased by 2%
FO Money raised (US$bn) Number of FOs
in terms of volume of transactions.

2. Asian IPO data by exchange

2012 2013 2014 Total
Number of Money raised Number of Money raised Number of Money raised Number of Money raised
IPOs (US$bn) IPOs (US$bn) IPOs (US$bn) IPOs (US$bn)
Hong Kong 64 11.6 112 22.1 122 30.0 298 63.7
Shanghai 26 6.1 0 0.0 43 5.5 69 11.6
Shenzhen 129 11.2 0 0.0 82 7.2 211 18.4
Taiwan 22 0.4 32 0.5 21 0.7 75 1.6
Singapore 21 3.7 25 4.9 27 2.6 73 11.2
Australia & New Zealand 54 2.2 67 10.0 86 16.2 207 28.4
Vietnam 17 0.0 0 0.0 0 0.0 17 0.0
Korea 34 3.9 36 1.2 39 4.0 309 9.1
Thailand 22 0.2 41 5.2 41 2.6 104 8.0
Indonesia 22 1.2 31 1.6 19 0.7 72 3.5
Japan 50 12.0 60 10.2 83 11.5 193 33.7
Malaysia 16 6.8 17 2.6 15 1.3 48 10.7
Philippines 5 0.7 8 0.2 5 0.3 18 1.2
Total 482 60.0 429 58.4 583 82.5 1,494 200.9

3. Asian FO data by exchange

2012 2013 2014 Total
Number of Money raised Number of Money raised Number of Money raised Number of Money raised
IPOs (US$bn) IPOs (US$bn) IPOs (US$bn) IPOs (US$bn)
Hong Kong 257 50.1 309 31.6 379 36.0 945 117.7
Shanghai 37 20.1 76 20.7 95 28.6 208 69.4
Shenzhen 47 8.9 81 12.4 121 26.2 249 47.5
Taiwan 120 4.1 131 5.3 130 4.4 381 13.8
Singapore 50 3.6 71 5.1 50 4.3 171 13.0
Australia & New Zealand 708 16.1 665 18.7 583 20.9 1956 55.7
Vietnam 1 0.01 1 0.07 1 0.07 3 0.15
Korea 59 0.2 65 6.3 90 8.4 214 14.9
Thailand 14 3.5 10 1.8 9 1.7 33 7.0
Indonesia 24 2.7 13 2.6 10 2.6 47 7.9
Japan 91 9.6 161 32.2 125 19.5 377 61.3
Malaysia 47 3.8 72 1.7 101 5.5 220 11.0
Philippines 17 2.5 19 4.6 16 2.3 52 9.4
Total 1,472 125.2 1,674 143.1 1,710 160.5 4,856 428.8
Source: Dealogic

8 IPO Watch Asia 2014

4. Top 10 IPOs by proceeds in 2014 and 2013
Top 10 IPOs 2014

Company Name Money raised Sector Country of Stock Exchange

(US$m) operation
Medibank Private Ltd 4,923 Insurance Australia Australia
Dalian Wanda Commercial Properties Co Ltd 3,715 Real Estate/Property China Hong Kong
CGN Power Co Ltd 3,638 Utility & Energy China Hong Kong
HK Electric Investments / HK Electric Investments Ltd 3,111 Utility & Energy China Hong Kong
Japan Display Inc 3,085 Computers & Tokyo Tokyo
Electronics
WH Group Ltd 2,362 Food & Beverage China Hong Kong
Healthscope Ltd 2,117 Healthcare Australia Australia
Recruit Holdings Co Ltd 1,968 Computers & Japan Tokyo
Electronics
BAIC Motor Corp Ltd 1,422 Auto/Truck China Hong Kong
Cheil Industries Inc 1,368 Real Estate/Property South Korea South Korea

Top 10 IPOs 2013

Company Name Money raised Sector Country of Stock Exchange

(US$m) operation
Suntory Beverage & Food Ltd 3,965 Food & Beverage Japan Tokyo
China Cinda Asset Management Co Ltd 2,824 Finance China Hong Kong
Sinopec Engineering (Group) Co Ltd 1,797 Construction/Building China Hong Kong
Nomura Real Estate Master Fund Inc 1,656 Real Estate/Property Japan Tokyo
Meridian Energy Ltd 1,596 Utility & Energy Australia Australia
China Huishan Dairy Holdings Co Ltd 1,500 Food & Beverage China Hong Kong
Mighty River Power Ltd 1,431 Utility & Energy New Zealand New Zealand
BTS Rail Mass Transit Growth Infrastructure Fund 1,418 Transportation Thailand Thailand
Huishang Bank Corp Ltd 1,368 Finance China Hong Kong
Mapletree Greater China Commercial Trust 1,264 Real Estate/Property Singapore Singapore

PwC 9
 5. Analysis by sector
IPOs breakdown by sector (by number of IPOs)

3% 2% 2% 3% 1% 13%
6% 15%
6%
Financial services

7% Industrial products &

services
Consumer goods
15%

2012–
Consumer services
13%

2014
Basic materials 23%
13%

2014
Technology

Healthcare

8% Oil & gas

12%
Utilities

Telecommunications 4%
21% 12%
21%

FOs breakdown by sector (by number of IPOs)

2% 2%
2% 3% 2%
15% 4% 15%
6%
Financial services
7%
Industrial products &
services
Consumer goods

2012–
16% Consumer services
15%
16%
2014
Basic materials
20%

2014
Technology

Healthcare

7% Oil & gas

7%
Utilities

10% Telecommunications
19% 12%
20%

10 IPO Watch Asia 2014

Capital Market Services practice
China/Hong Kong Capital
Market Services Practice
partners and directors
About PwC
For more information visit:
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The Capital Market Services practice is part of the Assurance practice of
PricewaterhouseCoopers. It is comprised of a core team of specialists who provide a
broad range of services to companies and/or investment banks in connection with
all aspects of capital market transactions. These include preparation for becoming a
public listed company, selecting the right market and advisory team, advising on
group restructuring, accounting and regulatory issues, and acting as reporting
accountants.
The China/Hong Kong Capital Market Services practice is part of the
PricewaterhouseCoopers global network of capital markets specialists.
Kennedy Liu +852 2289 1881 kennedy.liu@hk.pwc.com
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committed to delivering quality in assurance, tax and advisory services. Find out
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Providing organisations with the professional service they need, wherever they
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PwC 11
 Asia IPO Watch surveys all new listings and further offers on Asia Pacific’s principal
About Asia IPO Watch stock markets and market segments. All of the graphs, tables, and data used within
this publication have been collated or extracted by the Capital Market Services
practice research team. In collating and extracting this information, we rely upon
data sourced from Dealogic and provided directly by various exchanges. We do not
carry out any confirmation procedures on that information.

Going public is a major challenge for any company and there are many decisions
How can PwC help? that will need to be taken prior to an IPO. Management will need to steer the
company through a complicated and often time-consuming process in order to be
ready for an IPO. Planning and good preparation are crucial for a successful
flotation. It’s not simply a question of appointing advisors but about ensuring that
the company is ready to be listed on the public markets and that it is able to meet the
challenges that such a listing brings. If you are planning on listing, there will be
many questions you will want to ask. These are just some of the questions we will be
able to help you find answers to:

• What is an appropriate valuation for my business?

• What does being a public company really mean?
• How long will it take to complete an IPO?
• Do we have the right resources?
• Are my people ready?
• How to implement a stock based compensation plan?
• Do we have an attractive story for potential investors?
• What is the best way to articulate our strategy?
• What are the corporate governance issues we need to address?
• W hat are the internal control procedures we need to implement?
• How many non-affiliated/independence directors should we have on the board?
• What are the implications of a concurrent offering of shares to sophisticated
investors in the US (via144A) or elsewhere (via Reg S)?
• How do our accounting policies compare with other companies in the sector?
• Is my finance function ready?
• Are my operations run and managed effectively?
• What additional disclosures will we need to provide as a public company?
• Will it be a problem if one of our subsidiaries has a modified audit opinion?
• Do we need to restate our track record for recent acquisitions and disposals?
• How will an IPO affect our existing incentive arrangements?
• Any other possible listing venues?

12 IPO Watch Asia 2014

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