q3 2017 Global Tech Ipo Review

www.pwc.
com
Global Technology
IPO Review
Q3 2017
Global tech IPO activity slows in spite of
record high capital markets
Welcome to the third quarter 2017 issue of PwCs Global Technology IPO Review. With 20 tech IPOs and proceeds of
US$5.2 billion, the third quarter saw a 31% drop in volume and a 15% decrease in proceeds from the prior quarter but
an equal number of offerings and only marginally lower proceeds year over year (-3%). Even allowing for typical third
quarter seasonality, however, the overall strength of the capital markets would have suggested a stronger showing. It is
clear that poor aftermarket performance of several Unicorns that completed their IPOs earlier in the year did not foster
an environment of higher risk taking and higher valuations, and this was especially true in the US. As a result, not only
was there only one Unicorn IPO this quarter, it hailed from Argentina, not the US or China. However, activity did pick
up in the last month of the third quarter with 13 of the 20 technology IPOs listing in September, setting a positive stage
for an improved fourth quarter.
Year to date there have been 67 tech IPOs raising US$17.1 billion the best nine months since 2014 when 84 tech IPOs
raised US$43.7 billion, a spike in proceeds due to the mega Alibaba IPO.
Raman Chitkara Geographically, Asia accounted for 80% of the tech IPOs (16) in the third quarter, lending additional credence to the
Partner and Global Technology widely held notion that the center of gravity of the tech world is slowly moving towards the East. Greater China
Industry Leader (China and Taiwan) continued its domination of tech IPOs with 11. It was followed by South Korea with three and
PricewaterhouseCoopers LLP Japan and India with one each. Europe posted the two largest tech IPOs of the quarter, but the UK was again absent as
raman.chitkara@us.pwc.com it continues to be challenged by transitional issues associated with the Brexit decision. Perhaps the biggest surprise of
the quarter was just one tech IPO in the US. Consistent with past quarters, there was just one cross-border offering,
*Issue size greater than US$40 million
Argentinas Despegar.com, the sole Unicorn of the quarter that listed on the NYSE.
(includes overallotment) and based on
trade date; See Methodology In sharp contrast to preceding quarters, Internet Software & Services was number three this quarter raising US$616
million from three IPOs. Electronics led the way with nine IPOs, including the largest of the quarter, raising a
combined US$3.6 billion. Software was second with four IPOs raising US$718 million.
The macro environment remains positive for the IPO market owing to a robust pipeline and upbeat capital markets.
With US and European elections behind us, and barring any unforeseen geopolitical turmoil, the tech IPO market is
poised for a strong finish to the year.
Sincerely,
PwC | Global Technology IPO Review Q3 2017 2

Table of contents
Q3 2017 Global tech IPO summary .......................................................................................................................................... 4
Country and stock exchange detail .......................................................................................................................................... 9
Key financials Q3 2017 ......................................................................................................................................................... 16
Q3 2017 Technology IPO listings Valuation metrics ......................................................................................................... 20
Top three subsectors in Q3 2017............................................................................................................................................. 22
Methodology ............................................................................................................................................................................ 43
For more information ............................................................................................................................................................. 44
PwC | Global Technology IPO Review Q2 2017

Q3 2017 Global tech IPO summary
Lack of Unicorns and US Figure 1: Global tech IPOs Q3 2016-Q3 2017
tech IPOs dampen Q3 $7,000 35
$ 6,114
results, but improving $6,000 $ 5,382
$ 5,813 30
$ 5,223
activity at the close of the $5,000
29
25
quarter sets the stage for
No. of IPOs
20
US$ millions
$4,000 20
a robust Q4 20
$3,000 18 15
Following a positive first half of the year, Q3
$ 1,742
2017 saw 20 IPOs with proceeds of US$5.2 $2,000 10
billion. Those were declines of 31% and 15% 10
respectively from the prior quarter but only a $1,000 5
3% decline in proceeds from Q3 2016. The two
largest tech IPOs of Landis+Gyr Group, AG $- -
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
and Rovio Entertainment helped to raise
average proceeds to US$261 million, higher Total proceeds (US$mn) Total number of IPOs
than Q2 2017 at US$211 million, but slightly
Source: S&P Capital IQ with analysis by PwC
below Q3 2016 at $269 million.
Tech IPOs picked up steam in the latter part of

the quarter which suggests a stronger year-
end. There were 13 tech IPOs in September, of
which 8 were listed in the second half of the
month. "Continued strength in global capital markets and a robust pipeline of quality companies
suggests a strong finish to the year.
Asia had the largest number of tech IPOs with
16 IPOs, while Europe led the way in proceeds Raman Chitkara
with US$2.9 billion from just two tech IPOs. Global Technology Industry Leader
Rounding out the globe were the Americas
with one tech IPO each in the US and
Argentina.

Global tech IPOs post Figure 2: 9M 2010-9M 2017 total proceeds, average proceeds and no. of IPOs
best nine-month results $50,000
84
90
81
in three years $45,000
75
$40,000 67 $43,740 70 67
The nine-month total and average proceeds in
Q3 2017 were US$17.1 billion and US$256 $35,000 61 60
US$ millions
million, respectively. These numbers were
No. of IPOs
$30,000
higher than the comparable nine-month
$25,000 $21,811 44 45
periods in the past few years, except those that
39
included the IPOs by Facebook (2012) and $20,000 $16,318 $17,149
Alibaba (2014). $13,532 30
$15,000
$10,282
Compared to 2016, the proceeds grew by 125% $10,000 $7,632
$5,858 15
and the number of tech IPOs rose 52%. The
$5,000
nine-month growth was led by three billion- $167 $153 $358 $150 $521 $233 $173 $256
dollar-plus IPOs (Snap Inc, Landis+Gyr $- 0
Group, and Netmarble) 9M 2010 9M 2011 9M 2012 9M 2013 9M 2014 9M 2015 9M 2016 9M 2017
Total Proceeds Avg Proceeds No. of IPOs

The Asian tech IPO Figure 3: Regional analysis of number of tech IPOs
market has been the 20 19
bellwether three 18 16
16 14
quarters in a row, 14
No. of IPOs
accounting for 80% of the 12 11
tech IPOs in Q3 2017 10

7
8 6
Ongoing demand for tech IPOs in China, 6 5 4
continuing innovation in South Korea, and 4 3 3 3
2 2
contributions from Japan and India led to 2 1 1
0 0
stronger Asia numbers. A total of 16 IPOs 0
garnered US$1.7 billion. North America Europe Asia RoW
Europe had the two largest tech IPOs of the Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
quarter raising proceeds of US$2.9 billion. Source: S&P Capital IQ with analysis by PwC
Landis+Gyr Group, listed in Switzerland,
raised US$2.4 billion while Rovio, listed in Figure 4: Regional analysis of tech IPO proceeds
Finland, raised US$501 million. Once again,
notably absent was the UK that continues to $5,000 $4,490
grapple with transitional issues associated with
$4,000 $3,655
Brexit.
US$ millions
$2,835 $2,922
Challenged by the underperformance of $3,000
several high-profile tech IPOs earlier in the
$2,000 $1,921
year, the US recorded just one tech IPO raising $1,580 $1,666
US$252 million. $1,322
$1,000 $627 $879
We continue to see techs center of gravity shift $480 $331 $932 $382
$252 $0
from West to East. Asias nine-month numbers $- $-
far exceeded North America. North America North America Europe Asia RoW
had 12 IPOs for a total of US$5.6 billion, and
Asia had 49 IPOs for a total US$6.6 billion. Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Asia captured 73% of the tech IPOs during the Source: S&P Capital IQ with analysis by PwC
first nine months.

Tech IPOs in Q3 2017 Figure 5: Q3 2017 geographic distribution
were geographically $3,000 12
diverse; nine countries, 11
including Argentina, $2422
$2,500
participated
9
Q3 2017 had broad geographic participation,
with nine countries listing at least one tech $2,000
IPO. Switzerland produced the biggest IPO,
No. of IPs
US$ millions
Landis+Gyr Group, with proceeds of US$2.4
$1,500 6
billion, followed by Finland with Rovio raising $1281
US$501 million.
Greater China (China and Taiwan) recorded 11, $1,000

the highest this quarter, raising US$1.3 billion. 3
3
A strong equity market and positive post-IPO $501
performance boosted investor sentiment while $500 $382
$260 $252 1
actions taken by the Chinese government to 1 1 1 1 1
reduce the backlog of companies waiting to list $70 $55
helped to accelerate activity. Hong Kong also $0 0
confirmed that steps are being taken to open Greater South Switzerland Finland Argentina United India Japan
China* Korea States
another trading platform.
Continuing innovation in South Korea helped
Totak proceeds (US$mn) Number of IPOs
to further tech IPO activity with three listings
raising US$260 million.
* Includes China and Taiwan
The US, India, Japan, and Argentina also Source: S&P Capital IQ with analysis by PwC
recorded one tech IPO each in the quarter.

Electronics subsector Figure 6: Subsector distribution showing total proceeds
dominates with nine $5,000 $4,491
IPOs and US$3.6 billion $4,000
$4,395
$3,629
in proceeds
U.S$ in millions
$3,000
Contrary to the recent norm in global tech
IPOs, Electronics led the way with nine IPOs $2,000
raising US$3.6 billion, sequentially up 200% $616 $718 $832
$1,000 $125
and 1700%, respectively. Software came in $250 $345 $202 $426 $214 $293
$126 $145 $169 $59 $115
second, with four IPOs raising US$718 million. $0
Internet Software Software Semiconductors Electronics Computers & Communications IT Consulting &
Internet Software & Services ranked third with & Services Peripherals Equipment Services
three IPOs and proceeds of US$616 million.

Proceeds declined 86% and the number of Q1 2017 Q2 2017 Q3 2017
IPOs fell 67% compared to the previous Source: S&P Capital IQ with analysis by PwC
quarter.
Semiconductors reported three IPOs with

proceeds of US$145 million. Proceeds were Figure 7: Subsector distribution showing number of IPOs
down 83% and the number of IPOs declined
10
63%. 9 9
9
8
Computers & Peripherals posted one IPO with 8
proceeds of US$115 million.
7
6
5
No. of IPOS
5
4 4 4
4
3 3 3 3 3
3
2 2 2
2
1 1 1
1
0
0
Internet Software Software Semiconductors Electronics Computers & Communications IT Consulting &
& Services Peripherals Equipment Services
Q1 2017 Q2 2017 Q3 2017


Country and stock exchange detail
Greater China Figure 8: Greater China tech IPOs
The Greater China tech IPO $1,400

$1,204 $1,281
21
$1,196
market continues its rally $1,200 18
with 11 IPOs in Q3 2017, $1,000 15
No. of IPOs
US$ millions
12 16
capturing 55% of the total $800
$822
12
number of tech IPOs $611
11
$600 9
With eleven IPOs and proceeds of US$1.3 9
billion, Greater China (China and Taiwan) led $400 6
the way. Proceeds increased 98% and the $200 2 3
number of IPOs were up 22% year on year.
Sequentially, proceeds increased a more $0 0
modest 6% and the number of IPOs decreased Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
31%.
Total proceeds (US$mn) Number of IPOs
The steady flow of IPOs from Greater China
was supported by the backlog of companies
wishing to list, the governments support to
ease clearances, an improving economy, and
overall positive investor sentiment.
Consistent with our expectation, China tech IPOs slowed slightly in Q3 2017 after several quarters'
escalation. We anticipate that the number of Chinese domestic TMT IPOs will remain stable at a
relatively high level over the fourth quarter of this year. Further, Hong Kong IPOs are becoming
attractive again for Chinese tech companies in view of recent strong market performance.
Jianbin Gao
Technology Industry Leader, PwC China

South Korea Figure 9: Q3 2017 South Korean tech IPOs
South Koreas tech IPO $3,000 5
activity continued in Q3 with $2,500

$2,405
4
three IPOs though proceeds
No. of IPOs
$2,000
US$ millions
declined in the absence of 3 3
billion plus listings $1,500
2
South Korea participated in the tech IPO $1,000 2
market with three IPOs raising US$260
million. Compared to the previous quarter, the 1
$500 $260
number of IPOs grew 50% but proceeds
$0 $0 $0
declined by 89%. $0 - - - 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Looking ahead, the number of IPO
applications in the pipeline indicates that we Total proceeds (US$mn) Number of IPOs
will see more IPOs in the last quarter resulting
in better year-on-year numbers and proceeds.
"Although we saw a poor start to tech IPO activity in Korea in Q1, it picked up in Q2 with companies
in the Internet Software & Services and Semiconductor sectors. While we expect to see this continued
momentum for the remainder of the year, a healthy pipeline, especially with artificial intelligence,
robotics and electric vehicles, is expected to fuel tech IPOs through next year."
Steven Kang
Technology Industry Leader, PwC South Korea

Europe Figure 10: Europe tech IPOs
Europe had its strongest $3,500 5

$2,922
quarter since Q4 2015 for $3,000 $2,835
4
proceeds, led by the two $2,500
3
No. of IPOs
largest offerings of the 3
US$ millions
$2,000 3
quarter 2
$1,500 2 $1,580 2
The European tech IPO market has gathered
momentum in 2017. The region was a no-show $1,000
in Q1 but picked up steam in Q2. The third $331 1
$500
quarter saw the quarters biggest IPO with $0
Landis+Gyr Group AG raising US$2.4 billion. $0 - 0
This was also the largest IPO in Switzerland in Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
11 years.
Q3 2017 tech IPO figures for the region were Total proceeds (US$mn) Number of IPOs
almost on par with the year-ago period, with Source: S&P Capital IQ with analysis by PwC
the number of IPOs declining by a single
listing and proceeds increasing by just 3%.
Increasing stability in the European markets,

low levels of market volatility, stable indices,
strength in equity markets, and an improving
economic outlook led to the improvement in "The tech IPO market in Europe is slowly brightening compared to its initial weakness earlier in the
tech IPO activity. year. In Q2, we already saw the IPO of Delivery Hero in Germany with almost $1 billion raised in
addition to X-FAB Silicon Foundries in Belgium and Alfa Financial Software in the UK which both
reached around $300 million. In Q3, Switzerland claimed the largest single IPO, globally, to the
tune of $2.4 billion with Landis+Gyr, while Rovio Entertainment in Finland raised $500 million.
Looking ahead, with European elections behind us and a healthy pipeline of new entrants, I expect
the renewed momentum to continue through this year and into 2018.
Werner Ballhaus
European Technology, Media and Telecommunications Industry Leader, PwC Germany

US Figure 11: US tech IPOs
Despite strong capital $5,000

$4,490
8
markets, tech companies 6 6

$4,000
were largely absent from the 6
5
No. of IPOs
US IPO market
US$ millions
$3,000 4
The third quarter marked the second-largest 4
setback for the US tech IPO market since Q1 $2,000
2016, when US tech companies avoided the
IPO market altogether. In Q3 2017 there was 2
$1,000 $764
just one tech IPO, a decline in the number of $627 $479 1
listings by 83% and a decline in proceeds by $252
67% quarter on quarter. However, the nine- $0 0
month year-on-year comparison shows IPO Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
volumes on par with the previous year,
whereas IPO proceeds increased by 317% in Q3 Total proceeds (US$mn) Number of IPOs
2017. Source: S&P Capital IQ with analysis by PwC
Multiple factors impacted the IPO market in
the US in Q3 but likely the greatest issue facing
tech IPOs was the aftermarket
underperformance of two recent Unicorn
IPOs. However, with a promising performance
by Roku, many tech Unicorns with stalled IPO Although activity in the Q3 2017 US Technology IPO market was relatively modest with only a
plans may opt for listings in Q4 2017. single company raising $252 million, the pipeline for the remainder of the year remains robust
with several offerings close to pricing and a strong pipeline of potential IPOs.
Alan Jones
Technology Deals Partner, PwC US

Stock exchange Figure 12: Q3 2017 stock exchange distribution
distribution $3,000 8
The Asian stock exchanges led the global IPO
7 $ 2,422 7
market in Q3 2017 in number of offerings with $2,500
Chinese stock exchanges contributing 55% or 11
6
of 20 deals for the quarter. Of the 11 deals,
Shenzhen Stock Exchange (SZSE) listed seven $2,000
5
IPOs with an increase of one listing compared
US$ millions
to the last quarter. Sequentially tech offerings $1,500 4
No. of IPOs
on the Chinese stock exchanges declined by
27%. 3 3 3
$1,000
Among other Asian exchanges, KOSDAQ listed
$ 661 2
three IPOs with total proceeds of US$260 $ 501 $ 359
$500 1 1
million; Mumbai and Tokyo Stock Exchanges 1 1 1
$ 260 1 1 $ 260 1
each had a single listing during the quarter. $ 382 $ 252 $ 55 $ 70
The SIX Swiss Exchange raised the highest $- -
Shenzhen Shanghai NYSE NASDAQ Tokyo SE OMX Nordic Hong Kong BSE KOSDAQ Swiss SE
proceeds of US$2.4 billion with just a single Stock Stock Exchange SE
Exchange Exchange Helsinki
listing, Landis+Gyr Group AG.
The US stock exchanges had only two listings
in Q3 2017 compared to seven listings in Q2 Total proceeds (US$mn) Number of IPOs
2017, a decline of 71% quarter on quarter. One
of these listings was the cross border offering Source: S&P Capital IQ with analysis by PwC
of Despegar.com, from Argentina. It was the
sole Unicorn of the quarter and listed on the
NYSE.

Q3 2017 tech IPOs Offering details
Table 1: Q3 2017 tech IPOs By highest proceeds
Proceeds
Issue date Company Subsector (US$ million) Primary exchange Domicile nation
Q3
07/20/2017 Landis+Gyr Group AG Electronics 2,421.82 SIX Swiss Exchange Switzerland
09/28/2017 Rovio Entertainment Oyj Software 500.67 OMX Nordic Exchange Helsinki Finland
09/20/2017 Despegar.com Corp Internet Software & 381.82 New York Stock Exchange Argentina
Services
07/12/2017 Foxconn Interconnect Technology Limited Electronics 359.31 The Stock Exchange of Hong Kong Taiwan
07/28/2017 Electric Connector Technology Co Ltd Electronics 301.58 Shenzhen Stock Exchange China
09/27/2017 Roku Inc Electronics 252.25 NasdaqGS United Sates
09/13/2017 Pearl Abyss Corp Internet Software & 163.91 KOSDAQ South Korea
Services
09/12/2017 Cashway Technology Co Ltd Computers & 115.15 Shanghai Stock Exchange China
Peripherals
08/09/2017 Changzhou Youon Public Bicycle System Co Software 96.56 Shanghai Stock Exchange China
Ltd
09/06/2017 Wenzhou Yihua Connector Co Ltd Electronics 84.54 Shenzhen Stock Exchange China
09/28/2017 Dongguan Mentech Optical & Magnetic Co Electronics 74.26 Shenzhen Stock Exchange China
Ltd
09/19/2017 Matrimony.com Limited Internet 70.23 Mumbai Stock Exchange India
Software&Services
08/02/2017 Guangzhou Sie Consulting Co Ltd Software 65.88 Shenzhen Stock Exchange China
09/21/2017 Pksha Technology Inc Software 54.91 The Tokyo Stock Exchange Japan
08/10/2017 Union Optech Co Ltd Electronics 51.39 Shenzhen Stock Exchange China
09/15/2017 Sunic System Ltd Semiconductor 49.03 KOSDAQ South Korea
Guangdong Champion Asia Electronics Co
48.20
09/04/2017 Ltd Semiconductors Shanghai Stock Exchange China
09/26/2017 YAS Co Ltd Semiconductors 47.49 KOSDAQ South Korea

Proceeds
Issue date Company Subsector (US$ million) Primary exchange Domicile nation
08/03/2017 Shenzhen CDL Precision Technology Co Ltd Electronics 43.75 Shenzhen Stock Exchange China
Nanyang Senba Optical and Electronic Co
40.09
09/14/2017 Ltd Electronics Shenzhen Stock Exchange China
Source: S&P Capital IQ

Key financials Q3 2017
The total number of IPOs for Q3 2017 was 20 just two of nine companies that had reported net income in Q2 2017.
compared to 29 in Q2 2017, down 31%. The
Electronics led in average LTM revenue, average LTM EBIDTA, average EV, and average total debt. This was due primarily
average proceeds for Q3 2017 increased by
to the contribution of Foxconn Interconnect Technology Ltd.
24% quarter on quarter to US$261 million.
The Software subsector captured second place among the top three subsectors with four listings, equivalent to Q2 2017.
Ninety percent of the 20 IPO listings in the
The Semiconductors subsector reported the lowest average LTM revenue of US$102 million and average EV of US$439
quarter reported net income; last quarters
million in Q3 2017, dropping from its second rank on both fronts in Q2 2017.
share was 72%. The average LTM net income
of US$22 million for the quarter skyrocketed Figure 13: Q3 2017 and Q2 2017 tech IPOs Net income
by 263%, quarter on quarter. All subsectors
except Electronics had companies that Q3 2017 Q2 2017
reported net income. Only 2 of 20 companies
reported LTM net loss for the quarter, both in
the Electronics subsector. 10%
The average LTM revenue for Q3 2017 was 28%

US$385 million, an increase of 72% quarter on
quarter, led by the Electronics subsector,
followed by Internet Software & Services
(US$198 million) and Computers &
Peripherals (US$168 million).
72%
The Electronics subsector led in average LTM
EBIDTA at US$74 million, in average EV at 90%
US$1,655 mllion, and in average total debt at
US$78 million. Internet Software & Services
topped average net income with US$30 Net income Net loss Net income Net loss
million. All the three listings for the subsector
reported net income in Q3 2017, compared to Source: S&P Capital IQ with analysis by PwC

Figure 14: Q3 2017Average LTM revenue by subsector
$800 30
$678
$700
25
$600 20
In US$ millions
20
No. of IPOs
$500
$400 $385 15
9
$300
$198 10
$200 $168
$135
3 $102
1 5
$100
3 4
$0 0
Computers & Electronics Internet Software Semiconductors Software All Sectors
Peripherals and Services
LTM revenue No. of IPOs
Figure 15: Q3 2017 Average LTM EBITDA by subsector

$80 $74 30
$70
25
$60 $50
In US$ millions
No. of IPOs
20
$50 $43
20
$40 15
9 $28
$30
$19 $19 10
$20
3 3 4 5
$10 1
$0 0
LTM EBITDA No. of IPOs


Figure 16: Q3 2017Average LTM net income by subsector
$35 $30 30
$30 $25 20 25
In US$ millions
$25 $21 $22 20
No. of IPOs
$20
$14 15
$15 9 $13
$10 10
3 3 4
$5 1 5
$0 0
Computers & Electronics Internet Software and Semiconductors Software All Sectors
Peripherals Services
LTM Net income No. of IPOs
Figure 17: Q3 2017Average total debt by subsector

$90 30
$78
$80
25
$70
20
In US$ millions
$60 20
No. of IPOs
$50 $42
$39 15
$40
$30 9 10
$14 $12
$20 3 5
$10 1
$5 3 4
$0 0
LTM debt No. of IPOs


Figure 18: Q3 2017 Average enterprise value by subsector
$1,800 30
$1,590 $1,655
$1,600
25
$1,400 $1,315
$1,200 $1,173 20
No. of IPOs
$1,027 20
$1,000
In US$ millions
15
$800
$600 $439 10
$400 9
5
$200 1
3 3 4
$0 0
Enterprise value No. of IPOs

Q3 2017 Technology IPO listings Valuation
metrics
Both the EV/LTM revenue (3.4x) and the Figure 19: Q3 2017 EV/LTM revenue by subsector
EV/LTM EBIDTA (26.2x) multiple declined
compared to the previous quarter. 10.0x 9.4x 30
Computers & Peripherals reported the highest 9.0x

7.6x 25
EV/LTM revenue 9.4x and EV/LTM EBIDTA 8.0x
83.7x for the quarter. 20
7.0x
5.9x 20
No. of IPOs
Computers & Peripherals was followed by the 6.0x
Software subsector with an EV/LTM revenue In multiples
5.0x 4.3x 15
of 7.6x and EV/LTM EBIDTA of 36.5x.
Electronics reported the lowest valuation 4.0x 3.4x
2.4x 10
metrics of 2.4x for EV/LTM revenue and 22.4x 3.0x
for EV/LTM EBIDTA.
2.0x 3 3
9 5
1.0x 1
4
0.0x 0
Computers & Electronics Internet Semiconductors Software All Sectors
Peripherals Software and
Services
EV/LTM revenue No. of IPOs


Figure 20: Q3 2017 EV/LTM EBITDA by subsector
90.0x 25
83.7x
80.0x
20
20
70.0x
60.0x
No. of IPOs
15
50.0x
In multiples
40.0x 9 36.5x
10
27.4x 26.2x
30.0x
22.4x 22.7x
20.0x 4 5
3 3
10.0x 1
0.0x 0
EV/ LTM EBITDA No. of IPOs

Top three subsectors in Q3 2017
Electronics Figure 21: Electronics LTM revenue
With nine IPOs in the quarter, Electronics $900 12
figured among the top three subsectors for the
first time since 2010 when we began tracking $800 $765 9
global tech IPOs. The average LTM revenue in 10
$700 $678
the third quarter was US$678 million. This
was up 511% quarter on quarter and a massive
1580% year on year. This increase was $600 8
No. of IPOs
In US$ millions
primarily driven by Foxconn Interconnect
$500
Technology Ltd. (US$3,218 million) and
6
Landis+Gyr Group AG (US$1,659 million).
$400
This subsector reported the highest average EV
of US$1,655 million in Q3 2017, a 165% $300 4
increase quarter on quarter. Average LTM
EBIDTA rose 697% year on year to US$74 $200
2 $111 2
million, whereas average LTM net income was
$100 2
US$25 million, up 201% year on year. $40 $0 3
0
Despite having the highest average LTM $0 0
revenue for the quarter, the subsector reported Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
the lowest EV/LTM revenue of 22.4x. The
subsector recorded 6 out of 11 Greater China LTM revenue No. of IPOs
tech IPO offerings for Q3 2017, with all of Source: S&P Capital IQ with analysis by PwC
them being listed on the SZSE.

Figure 22: Electronics LTM EBITDA
$80 12
$74
$70 $66
10
9
$60
No. of IPOs
$50
In US$ millions
$40 6
$30
4
3
$20
2 2
$14 2
$10 $9
$0
$0 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 23: Electronics LTM net income
$70 12
$60 $58
9 10
$50
8
No. of IPOs
In US$ millions
$40
6
$30
$25
4
$20 3
2 2 $13
$8 2
$10
$0
$0 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
LTM Net income No. of IPOs

Figure 24: Electronics EV
$3,000 12
$2,848
$2,500 10
9
$2,000 8
No. of IPOs
$1,655
In US$ millions
$1,500 6
$1,000 4
$773 3
2
$624
$500 2
2
$0
$0 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 25: Electronics Total debt
$90 12
$80 $78
10
$70
$60 9 8
In US$ millions
No. of IPOs
$50
6
$40
$30 4
3
$20 2 2
2
$10 $7
0 $4
$0 $0 $0 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Total debt No. of IPOs


Figure 26: Electronics EV/LTM revenue
25.0x 12
10
20.0x 19.2x
9
8
15.0x
No. of IPOs
In multiples
10.0x
4
5.6x
5.0x 3.7x 3
2
2 2 2.4x
0.0x
0.0x 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 27: Electronics EV/LTM EBITDA
90.0x 12
83.6x
80.0x
9 10
70.0x
60.0x 8
No. of IPOs
50.0x 46.1x
43.1x 6
In multiples
40.0x
30.0x 4
22.4x
20.0x 2
3 2
10.0x 2
0.0x
0.0x 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
EV/LTM EBITDA No. of IPOs

Software Figure 28: Software LTM revenue
Software reported average revenue of US$135 $300 12
million with four IPOs in Q3 2017, an increase
of 20% quarter on quarter. On the number of $253
$250 10
deals, the subsector was on par with the last
10
quarter; however, the year-on-year decline was
60%. The sectors average LTM EBIDTA $200 8
US$ millions
improved remarkably, up 571% year on year
No. of IPOs
and 307% quarter on quarter. This increase
was mainly due to positive LTM EBIDTA $150 $135 6
reported by the companies in the subsector. $112
$100 4
The subsectors average LTM net income also $100 $86 4
improved with 175% increase year on year and 4 4
171% increase quarter on quarter. The average
$50 2
EV for the quarter is US$1,027 million, an
increase of 51% quarter on quarter.
1
$0 0
EV/LTM EBIDTA is 36.5x compared to that of
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
97.9x for Q2 2017.

Figure 29: Software LTM EBITDA
$40 12
$30 $28
10 10
$20
8
No. of IPOs
$10
$7
$4 6
US$ millions
$0
4
4 4 4
($10) ($7)
2
($20)
1
($21)
($30) 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 30: Software LTM net income
$20 12
10 $14
$15
10
$10
$5 8
$5
6
$0
No. of IPOs
US$ millions
4
($5) 4
4 4
($10)
1 2
($15)
0
($20) ($18)
($19)
-2
($25)
($24)
($30) -4
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
LTM net income No. of IPOs

Figure 31: Software EV
$3,000 18
16
$2,500 $2,468
14
$2,000 12
No. of IPOs
10
US$ millions
$1,500 10
8
$1,004 $1,027
$1,000 6
$756 $678
4
$500 4 4 4
2
1
$0 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 32: Software Total debt
$70 16
$65
$60 14
12
$50
10
No. of IPOs
10
$40
US$ millions
$30 8
$30
6
$20 4
4 4 4
$11 $12
$10 2
1
$0
$0 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 33: Software EV/LTM revenue
14.0x 14
12.0x 11.7x 12
9.8x
10.0x 10
10
No. of IPOs
8.0x 7.5x 7.6x 8
In multiples
6.0x
6.0x 6
4 4 4
4.0x 4
2.0x 1 2
0.0x 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 34: Software EV/LTM EBITDA
700.0x 12
600.0x 587.6x
10
10
500.0x
8
No. of IPOs
400.0x
In multiples
6
300.0x
4 4 4
4
200.0x
97.9x 2
100.0x 1
36.5x
0.0x NM NM 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Internet Software Figure 35: Internet Software & Services LTM revenue
& Services $500 $472 15
With three IPO listings in Q3 2017, Internet $450
Software & Services failed to maintain the top
position it held for many quarters. $400 12
$350 $312
The subsector reported a 67% decline in
No. of IPOs
US$ millions
number of deals and a 59% decline in average $300 9
proceeds, quarter on quarter.
$250 9
$204 $198
Average LTM revenue for the quarter declined
$200 6
by 36% quarter on quarter whereas average
LTM EBIDTA and average LTM net income $150 $131
5 3
increased by 201% and 138%, respectively. 2
$100 3
EV/LTM EBIDTA multiple for the quarter was 3
$50
27.4x compared to a nonmaterial figure for the
last quarter. The EV/LTM revenue multiple $0 0
was 5.9x for Q3 2017. Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017


Figure 36: Internet Software & Services LTM EBITDA
$60 15
$43
$40
12
$20
$1 9
$0
No. of IPOs
9
($20)
US$ millions
6
($40)
($42)
5
($60) ($54)
3 3
2
($80) 3
($92)
($100) 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 37: Internet Software & Services LTM net income
$100 15
$30
$0
($14) 12
($100) ($77)
($92)
No. of IPOs
9
($200)
9
US$ millions
($300)
5 6
($400)
2 3
3
($500) 3
($479)
($600) 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
LTM net income No. of IPOs

Figure 38: Internet Software & Services Enterprise value
$6,000 $5,674 15
$5,000
$4,587 12
$4,000 9
No. of IPOs
9
$3,015
$3,000
US$ millions
6
$2,000
3 $1,173
5
3
$1,000
$686 3
2
$0 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 39: Internet Software & Services Total debt
$35 15
$31
$30 $28
12
$25
9
9
No. of IPOs
$20
$18
US$ millions
$15
6
$11
$10
3 5 3
2 3
$5
$5
$0 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 40: Internet Software & Services EV/LTM revenue
30.0x 15
27.9x
25.0x
12
20.0x 9
In multiples
No. of IPOs
9
15.0x
5 6
9.7x 9.7x
10.0x 3
5.2x 5.9x
3
5.0x
3
2
0.0x 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Figure 41: Internet Software & Services EV/LTM EBITDA
1200.0x 15
1,083.7 x
1000.0x
12
800.0x 9
In multiples
No. of IPOs
9
600.0x
5 6
400.0x
3
2 3
200.0x 3
27.4 x
NM NM NM
0.0x 0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017


Methodology
The Global Technology IPO Review for Q2 2017 is based on PwCs analysis of transaction data extracted from S&P Capital IQ. The analysis considers IPOs
across all countries worldwide during the period 1 April 2017 to 30 June 2017 (Q2), financial data was also obtained from S&P Capital IQ.
The definition of the Technology sector is based on the S&P Capital IQ database industry classifications and includes the following subsectors:
Internet Software & Services
IT Consulting & Services
Professional Services (e.g., Application Software, Software Solutions)
Semiconductors
Software
Computers & Peripherals
Computers, Computers Peripheral Equipment
Computers, Storage Device Manufacturing
Electronic Computer Manufacturing (Electronics)
Communications Equipment
Only IPOs with issue size greater than US$40 million were included in the analysis.
All monetary amounts are in US dollars unless otherwise indicated.
LTM Last 12 months
Most figures are rounded to one decimal, except where comparisons require more.

For more information
If you would like to discuss how these findings might impact your business or your future strategy, please reach out to any of our technology industry leaders listed below.
Raman Chitkara Sandeep Ladda India Mark McCaffrey US

Global Technology Leader Phone: 91 22 6689 1444 Phone: 1 408 817 4199
Phone: 1 408 817 3746 Email: sandeep.ladda@in.pwc.com Email: mark.mccaffrey@pwc.com
Email: raman.chitkara@pwc.com
Masahiro Ozaki Japan Alan Jones US (Deals partner)
Rod Dring Australia Phone: 81 3 5326 9090 Phone: 1 415 498 7398
Phone: 61 2 8266 7865 Email: masahiro.ozaki@jp.pwc.com Email: alan.jones@pwc.com
Email: rod.dring@au.pwc.com
Steven Kang Korea
Estela Vieira Brazil Phone: 82 2 709 0201
Phone: 55 1 3674 3802 Email: steven.c.kang@kr.pwc.com
Email: estela.vieira@br.pwc.com
Ilja Linnemeijer The Netherlands
Christopher Dulny Canada Phone: 31 88 792 4956
Phone: 1 416 869 2355 Email: ilja.linnemeijer@nl.pwc.com
Email: christopher.dulny@pwc.com
Yury Pukha Russia
Jianbin Gao China Phone: 7 495 223 5177
Phone: 86 21 2323 3362 Email: yury.pukha@ru.pwc.com
Email: gao.jianbin@cn.pwc.com
Mark Jansen Singapore
Pierre Marty France Phone: 65 6236 7388
Phone: 33 1 5657 58 15 Email: mark.jansen@sg.pwc.com
Email: pierre.marty@fr.pwc.com
Jass Sarai UK
Werner Ballhaus Germany Phone: 44 0 1895 52 2206
Phone: 49 211 981 5848 Email: jass.sarai@pwc.com
Email: werner.ballhaus@pwc.com

About PwCs technology institute
The Technology Institute is PwCs global research network that studies the business of technology and the technology of business with the purpose of creating thought leadership that offers both
fact-based analysis and experience-based perspectives. Technology Institute insights and viewpoints originate from active collaboration between our professionals across the globe and their first-
hand experiences working in and with the technology industry.
About PwC
At PwC, our purpose is to build trust in society and solve important problems. Were a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in
assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at http://www.pwc.com/
This content is for general information purposes only and should not be used as a substitute for consultation with professional advisors.
2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further
details.

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PwC | Global Technology IPO Review Q3 2017 2

Country and stock exchange detail .......................................................................................................................................... 9

Key financials Q3 2017 ......................................................................................................................................................... 16

Q3 2017 Technology IPO listings Valuation metrics ......................................................................................................... 20

Top three subsectors in Q3 2017............................................................................................................................................. 22

For more information ............................................................................................................................................................. 44

PwC | Global Technology IPO Review Q2 2017

Tech IPOs picked up steam in the latter part of

PwC | Global Technology IPO Review Q3 2017 4

PwC | Global Technology IPO Review Q3 2017 5

tech IPOs in Q3 2017 10

PwC | Global Technology IPO Review Q3 2017 6

Greater China (China and Taiwan) recorded 11, $1,000

PwC | Global Technology IPO Review Q3 2017 7

three IPOs and proceeds of US$616 million.

Semiconductors reported three IPOs with

Q1 2017 Q2 2017 Q3 2017

PwC | Global Technology IPO Review Q3 2017 8

The Greater China tech IPO $1,400

PwC | Global Technology IPO Review Q3 2017 9

South Koreas tech IPO $3,000 5

activity continued in Q3 with $2,500

PwC | Global Technology IPO Review Q3 2017 10

Europe had its strongest $3,500 5

Increasing stability in the European markets,

PwC | Global Technology IPO Review Q3 2017 11

Despite strong capital $5,000

markets, tech companies 6 6

PwC | Global Technology IPO Review Q3 2017 12

PwC | Global Technology IPO Review Q3 2017 13

PwC | Global Technology IPO Review Q3 2017 14

Source: S&P Capital IQ

PwC | Global Technology IPO Review Q3 2017 15

The average LTM revenue for Q3 2017 was 28%

PwC | Global Technology IPO Review Q3 2017 16

LTM revenue No. of IPOs

Figure 15: Q3 2017 Average LTM EBITDA by subsector

LTM EBITDA No. of IPOs

PwC | Global Technology IPO Review Q3 2017 17

$25 $21 $22 20

Figure 17: Q3 2017Average total debt by subsector

LTM debt No. of IPOs

PwC | Global Technology IPO Review Q3 2017 18

Enterprise value No. of IPOs

Source: S&P Capital IQ with analysis by PwC

PwC | Global Technology IPO Review Q3 2017 19

Computers & Peripherals reported the highest 9.0x

EV/LTM revenue No. of IPOs

PwC | Global Technology IPO Review Q3 2017 20

EV/ LTM EBITDA No. of IPOs

Source: S&P Capital IQ with analysis by PwC

PwC | Global Technology IPO Review Q3 2017 21

PwC | Global Technology IPO Review Q3 2017 22

LTM EBITDA No. of IPOs

Source: S&P Capital IQ with analysis by PwC

PwC | Global Technology IPO Review Q3 2017 23

LTM Net income No. of IPOs

Source: S&P Capital IQ with analysis by PwC

PwC | Global Technology IPO Review Q3 2017 24

Enterprise value No. of IPOs

Source: S&P Capital IQ with analysis by PwC

PwC | Global Technology IPO Review Q3 2017 25

Total debt No. of IPOs