Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY

 
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Big vs agile?
      Global IPO trends: Q4 2018
      Mega and unicorn IPOs characterize
      2018 deal landscape; trend to
      continue in 2019

The better the question. The better the answer.
The better the world works.
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Contents
Global IPO market                                              3
Americas                                                       7
Asia-Pacific                                                  11
Europe, Middle East, India and Africa                         21
Appendix                                                      30
About this report
EY Global IPO trends report is released every quarter and looks
at the IPO markets, trends and outlook for the Americas, Asia-
Pacific, Japan and EMEIA regions.
The report provides insights, facts and figures on the 2018
IPO market year-to-date and analyzes the implications for
companies planning to go public in the short and medium term.
You will find this report at the EY Global IPO website. You can
also follow the report on LinkedIn or Twitter.

All values are US$ unless otherwise noted.
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Global IPO market
2018 IPO activity charts a steady course
forward, despite waves of volatility
“Through a fog of uncertainty, IPO markets around the world found a
 clear path forward and investment opportunities ultimately delivered
 returns in 2018, as investor confidence, mega IPOs and the rise of the
 unicorn companies helped provide assurance for IPO investors. While
 the fourth quarter was weak, the year ended as expected, with 2018
 activity held back toward the end of the year by geopolitical tensions,
 trade issues between the US, China and the EU, and the looming exit of
 the UK from the EU. Looking ahead to 2019, we expect a cautious
 start, followed by rays of hope that should brighten IPO activity in the
 second half of the year. In the meantime, it is more important than
 ever for IPO candidates to remain flexible and be well-prepared to
 move when the fog begins to lift.”
 Dr. Martin Steinbach
 EY Global and EY EMEIA IPO Leader
                                                                            Global IPO trends: Q4 2018 | Page 3
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Global IPO market

Highlights from the market                                                                                    Markets                                                                                                                Activity Q4 2018
►   Through a fog of uncertainty, IPO candidates have found a clear                                                                                  Change on
                                                                                                                                                                                                              Change on
                                                                                                               2018                                                      Q4 2018                              prior year
    path to market in 2018, supported primarily by investor                                                                                          prior year
                                                                                                                                                                                                              quarter                    Stock                 Sectors             IPOs
    confidence, large pools of liquidity, strong valuations and low                                                                                                                                                                      exchanges
    interest rates, despite equity market volatility, geopolitical tensions                                    1,359                                      21%            326                                        34%                  by highest total
                                                                                                                                                                                                                                                               by highest
                                                                                                                                                                                                                                                               number of IPOs
                                                                                                                                                                                                                                                                                    largest by
                                                                                                                                                                                                                                                                                    proceeds
    and ongoing trade issues between the US, the EU and China.                                                 IPOs globally                                             IPOs globally                                                   proceeds
    While 2018 global IPO volumes declined by 21% from 2017,
                                                                                                               $204.8b                                                   $53.7b
►
                                                                                                                                                            6%                                                      10%
    proceeds are up by 6%. This can be largely attributed to a number
    of unicorns (40 IPOs, raising US$32.2b in total) and mega IPOs                                             proceeds                                                  proceeds             All amounts in table are in US$
    that went public.
    Asia-Pacific continued to be a beacon across the global IPO
                                                                                                                                                                                                                                         Tokyo (TSE),          Technology          SoftBank
►
    landscape in 2018, accounting for 49% of deal number and 48% by                                               IPO activity                                             M&A activity                                                  MOTHERS               64 IPOs             Corp.
    proceeds. While 2018 deal numbers were 31% lower than 2017,
                                                                                                                                                                                                                                         and JASDAQ                                $21.1b
                                                                                                                2,000                                        $300
                                                                                                                                                                         40,000                                       $4,000                                   $4.3b
    proceeds were up 28% year-over-year in 2018.                                                                                                             $250                                                                        $21.6b                                     Telecommunications
                                                                                                                1,500
                                                                                                                                                                                                                                                                                    Japan
►   EMEIA exchanges saw a 16% drop in deal volume and 26%                                                                                                    $200
                                                                                                                                                                         30,000                                       $3,000
                                                                                                                                                                                                                                         30 IPOs                                    Tokyo (TSE)
    decline by proceeds in 2018 compared with 2017. An unclear                                                  1,000                                        $150        20,000                                       $2,000
    path to Brexit, political changes in Germany and Italy, and US trade
                                                                                                                                                             $100
    and tariff uncertainties have directly impacted European and EMEIA                                                                                                   10,000                                       $1,000
                                                                                                                                                                                                                                         Deutsche              Health care         Knorr-
                                                                                                                  500
    economies and muted IPO activity.                                                                                                                        $50

►   America’s share of global IPOs continued to improve in 2018 by                                                  0                                        $0
                                                                                                                                                                              0
                                                                                                                                                                                   2014 2015 2016 2017 2018
                                                                                                                                                                                                                      $0
                                                                                                                                                                                                                                         Börse (Main           61 IPOs             Bremse AG
                                                                                                                                                                                                                                         and Scale)                                $4.4b
                                                                                                                         2014 2015 2016 2017 2018
    deal number and proceeds. The region saw its 2018 volume and                                                                                                                                                                                               $5.1b
                                                                                                                          Number of IPOs            Proceeds US$b                   Number of M&A           Deal value US$b
    proceeds exceeded that of 2017. The US dominated IPO activity,                                                                                                                                                                       $4.6b                                      Industrials
    representing 79% of the region’s deal number and 88% by proceeds.                                                                                                                                                                                                               Germany
                                                                                                               Sources of IPOs                                                                                                           3 IPOs                                     Deutsche Börse
►   Technology, industrials and health care were the most prolific
    sectors by deal numbers in 2018, while technology,                                                         2018                                 Percentage
    telecommunications and financials led by proceeds. This suggests                                                                                of proceeds            72%         82%       87%       89%       90%
                                                                                                                                              16%
    that investors are striking a balance between growth and value
                                                                                                              Percentage                 9%
                                                                                                                                                    3%
                                                                                                                                                                                                                                         Hong Kong             Industrials         Tencent Music
    investments.
                                                                                                              of IPOs                                                                                                                    (Main and             49 IPOs             Entertainment
    The proportion of cross-border IPOs increased in 2018 by deal                                                                                                                                                                        GEM)                                      Group
                                                                                                                                                                                                                                                               $9.4b
►                                                                                                                                          1%
                                                                                                                                                                            1%
    number, compared with 2017. The US, Hong Kong and London                                                                                                                            1%
    continue to be the favored destinations of cross-border IPOs.                                                                  90%                                     27%
                                                                                                                                                                                                 1%         1%        1%                 $4.4b                                     $1.4b
                                                                                                                                                                                       17%                                                                                          Media and
►   Non-financial sponsored companies are an increasingly dominant                                                           81%
                                                                                                                                                                                                 13%       10%        9%
                                                                                                                                                                                                                                         42 IPOs                                    Entertainment
                                                                                                                                                                           2014       2015      2016      2017       2018
    source of IPOs in all markets. Moreover, ongoing uncertainties and                                                                                                                                                                                                              China
    volatility in global equity markets has pushed an increasing number                                                  Financial sponsor-backed  Former state-owned enterprises  Non-financial sponsor-backed                                                                  New York (NYSE)
    of financial sponsors to consider M&A as the preferred exit route.                                                                                                            Figures may not total 100% due to rounding                                                        All amounts in table are in US$

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover            Global IPO trends: Q4 2018 | Page 4
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Global IPO market

   Regional performance and trends
                                                                                                                                                                                                                                                               Cross-border IPOs
                                                                                                                                                                                                                                                               Percentage by number of IPOs globally
            Although positive post-IPO performance has receded from previous years, first-day IPO                                                                                                                                                              2018         10%
            returns continue to outperform IPO offer pricing by at least 10%. These encouraging                                                                                                                                                                2017         7%
            returns continue to feed investor appetite, particularly for technology, industrials and                                                                                                                                                           2016         6%
            health care IPOs. The rise of the unicorns and mega IPOs have also helped to push 2018
                                                                                                                                                                                                                                                               2015         8%
            proceeds beyond 2017 levels.
                                                                                                                                                                                                                                                               2014         10%

     Regional share by number of IPOs                                                                                            Regional share by proceeds                                                                                                    Top countries of origin 2018
                                                                                                                                                                                                                                                               By number of IPOs outside home country
                                                                                                                                                                                                                                                               •   China (3)
       2018             19%                        32%                                       49%                                   2018                  29%                        23%                                  48%                                   •   Singapore (15)
                                                                                                                                                                                                                                                               •   UK (12)
                                                                                                                                                                                                                                                               •   US (10)
       2017          13%                    30%                                          57%                                       2017                 27%                            34%                                   39%                               •   Australia (6)
                                                                                                                                                                                                                                                               Top IPO destinations* 2018
       2016         12%                  29%                                           59%                                         2016            17%                     28%                                       54%                                       By number of IPOs
                                                                                                                                                                                                                                                               •   NASDAQ (33)
                                                                                                                                                                                                                                                               •   NYSE (27)
       2015           16%                     30%                                         54%                                      2015             19%                         36%                                       45%
                                                                                                                                                                                                                                                               •   Hong Kong (23)
                                                                                                                                                                                                                                                               •   London (14)
       2014                25%                          30%                                    45%                                 2014                       38%                                31%                             31%                           •   Australia (9)

                                                                                                             Americas  EMEIA  Asia-Pacific
       or or — = increase or decrease or remain constant for full year 2018 compared with the full year of 2017
    Figures may not total 100% due to rounding.                                                                                                                                                                                                                *IPO destinations refer to stock exchanges (main and junior markets).

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                          Global IPO trends: Q4 2018 | Page 5
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Global IPO market

    Outlook                                                                                                        EY IPO sentiment radar
    ►   Given market volatilities and geopolitical uncertainties, the                                              The radar contains a variety of market
        strong decline in quarter-over-quarter IPO activity in all                                                 factors that may impact investor                                                                                                  Interest
        regions in Q4 2018 sends signals for a cautious start in                                                                                                                                                                                     rate hikes
        2019. However, companies that do come to the public                                                        sentiment for IPOs.
        markets will be of higher quality as investors become more                                                 Pre-IPO companies should analyze how
        selective. The best option for IPO candidates is to ride the                                               these factors may affect their business
        wave, take the additional time to further improve their IPO
        readiness and consider a multitrack approach.                                                              and valuations. These factors can ultimately
        Although 2019 IPO deal numbers could be below that of                                                      have an impact on the timing and value
                                                                                                                                                                                                                                                                 Implications from
    ►
        2018 (1,150 to 1,300 IPOs), it is likely that global proceeds                                              of their transaction in view of their
        could meet or exceed the high 2018 levels.
        Asia-Pacific: Heading into 2019, we expect the decline in IPO
                                                                                                                   chosen IPO destination.                                                                                   Oil prices                          changes in US
                                                                                                                                                                                                                                                                 trade policies
    ►
        activity to continue by deal numbers and proceeds. However,
        if geopolitical uncertainties and market volatility stabilize, IPO
        activity levels could improve in the second half of the year.                                                                                                                                                     Brexit
    ►   EMEIA: US-China-EU trade tensions, Brexit, uncertainty with
        respect to the stability of selected European economies, and
        the potential of rising interest rates will likely continue to                                              Potential impact                                                                                 Short-term
        dampen IPO activity in the first half of 2019. However, with
        strong fundamentals and investor confidence, EMEIA IPO                                                      ►    Consider a number of                                                                        volatility                                                Geopolitical
        markets will remain a dominant force globally in 2019.                                                           alternative funding or                                                                                                                                tensions
    ►   Americas: Healthy performance in 2018 creates a supportive                                                       exit options (multitrack)                                                    Currency
        backdrop for continued Americas IPO activity. The number of
        companies, including multiple unicorns, considering the public                                              ►    Preserve optionality                                                                                                                              Economic growth
        markets in 2019 suggests that the Americas IPO market has                                                        with early IPO readiness
        much to look forward to in the year ahead.
    ►   Sectors: Technology, industrials, health care and consumer                                                       preparations
        products sectors will remain particularly active as investors                                               ►    Prepare early to complete
        look to balance high returns potential, with more traditional,                                                                                                                                                                                         Stronger regulatory
        less risky investments.                                                                                          your IPO quickly in narrow                                                                                                            requirements
    ►   Cross-border: We expect cross-border activity to maintain its                                                    IPO windows
        momentum well into 2019, with the US, Hong Kong and                                                         ►    Be flexible in timing
        London continuing to be the top destinations.
                                                                                                                         and pricing

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                 Global IPO trends: Q4 2018 | Page 6
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Americas
Despite market volatility, 2018 Americas
IPO activity continued full-steam ahead
“Despite muted IPO activity on Central and South
 America exchanges in the second half of 2018, the
 IPO pipeline continues to build in the Americas. We
 expect issuers that are well prepared will be able to
 manage through periods of market instability.”
 Jackie Kelley
 EY Americas IPO Markets Leader

                                                         Global IPO trends: Q4 2018 | Page 7
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Americas

Highlights from the markets                                                                                                                                                Brazil‘s B3 2018
                                                                                                                                                                                                                                                                                                    All amounts in table are in US$

►    Despite the volatility, Americas IPO markets are ending on a high as year-over-year deal volumes and                                                                                                                               Change on prior year   12                                                               $7

     proceeds from 2018 exceeded 2017 numbers by 14% and 16%, respectively.
                                                                                                                                                                            3 IPOs                                                                             10                                                               $6
                                                                                                                                                                                                                                                     70%        8                                                               $5
►    The US exchanges accounted for 79% of Americas IPO deal numbers and 88% by proceeds.                                                                                                                                                                                                                                       $4

                                                                                                                                                                            $2.0b proceeds
                                                                                                                                                                                                                                                                6
                                                                                                                                                                                                                                                                                                                                $3
►    Besides the US, Canada’s Toronto Stock Exchange and Venture Exchange saw 17 IPOs, which raised                                                                                                                                                  65%        4                                                               $2
     US$1.1b in 2018, accounting for 7% of Americas IPOs and 2% by proceeds. There were no significant                                                                                                                                                          2

                                                                                                                                                                            $801m median deal size
                                                                                                                                                                                                                                                                                                                                $1

     IPOs on Brazil’s or Mexico’s markets in the second half of 2018.                                                                                                                                                                              102%         0                                                               $0
                                                                                                                                                                                                                                                                     2014      2015      2016            2017        2018
►    Cross-border deals accounted for 25% (65 IPOs) of 2018 Americas IPOs. 60 foreign issuers listed in                                                                                                                                                                     Number of IPOs                    Proceeds US$b
     the US and 5 listed on Canada’s Toronto Main and Venture Exchanges and CNQ. This signaled continued

►
     confidence in Americas exchanges.
     Health care, technology and financials sectors saw the highest level of IPO activity in 2018, with
                                                                                                                                                                           Canada‘s Toronto Stock Exchange and TSX Venture Exchange 2018
     health care alone contributing to 35% of deal volume, while technology and financials accounted for 22%                                                                                                                            Change on prior year   25                                                               $4

                                                                                                                                                                            17 IPOs
                                                                                                                                                                                                                                                               20
     and 10%, respectively. These sectors accounted for 17%, 28% and 13% of proceeds, respectively.                                                                                                                                                                                                                             $3
                                                                                                                                                                                                                                                     19%       15
                                                                                                                                                                                                                                                                                                                                $2

                                                                                                                                                                            $1.1b proceeds
                                                                                                                                                                                                                                                               10
                                                                                                                                                                                                                                                     59%
    Markets 2018
                                                                                                                                 All amounts in table are in US$                                                                                                5                                                               $1

                                                               Change on prior year         400
                                                                                            300
                                                                                                                                                           $120
                                                                                                                                                                            $15m median deal size                                                    80%
                                                                                                                                                                                                                                                                0
                                                                                                                                                                                                                                                                     2014      2015      2016            2017        2018
                                                                                                                                                                                                                                                                                                                                $0

    261 IPOs
                                                                                                                                                           $80
                                                                                            200                                                                             IPO activity of Canadian Securities Exchange is excluded.                                       Number of IPOs                    Proceeds US$b
                                                                            14%             100
                                                                                                                                                           $40

    $60.0b proceeds                                                         16%
                                                                                                                                                                           Mexico‘s Mexican Stock Exchange 2018
                                                                                               0                                                           $0
                                                                                                    2014       2015       2016        2017       2018
    $99m median deal size                                                   13%                            Number of IPOs                    Proceeds US$b                                                                              Change on prior year    8                                                               $4

                                                                                                                                                                            6 IPOs                                                                   20%
                                                                                                                                                                                                                                                                6                                                               $3

    Activity Q4 2018
                                                                                                                                 All amounts in table are in US$                                                                                                4                                                               $2

                                                                                                                                                                            $3.2b proceeds                                                           24%        2                                                               $1

      Stock exchanges                                      Sectors                                             IPOs                                                         $387m median deal size                                                   20%
                                                                                                                                                                                                                                                                0
                                                                                                                                                                                                                                                                     2014      2015      2016            2017        2018
                                                                                                                                                                                                                                                                                                                                $0

       by highest total proceeds                           by highest number of IPOs                           largest by proceeds                                                                                                                                          Number of IPOs                    Proceeds US$b

      NASDAQ                                               Health care                                         Tencent Music Entertain-
      $4.3b | 27 IPOs US                                   23 IPOs | $2.4b
                                                                                                               ment Group $1.4b Media and                                  US‘ NASDAQ and NYSE 2018
                                                                                                               entertainment, New York, China                                                                                                                  300                                                              $100
                                                                                                                                                                                                                                        Change on prior year
      NYSE                                                 Technology                                          StoneCo Ltd.
                                                                                                                                                                                                                                                                                                                                $80

      $3.7b | 11 IPOs US                                   14 IPOs | $2.8b                                     $1.4b Technology, NASDAQ, Brazil                             205 IPOs                                                                 14%
                                                                                                                                                                                                                                                               200
                                                                                                                                                                                                                                                                                                                                $60
                                                                                                                                                                                                                                                                                                                                $40

                                                                                                                                                                            $52.8b proceeds
                                                                                                                                                                                                                                                               100
      Toronto TSX and Venture                              Materials                                                                                                                                                                                 31%                                                                        $20

      $235m | 5 IPOs Canada                                                                                    Moderna Inc.
                                                           7 IPOs | $395m
                                                                                                                                                                            $111m median deal size
                                                                                                                                                                                                                                                                0                                                               $0

                                                                                                               $500m Health care, NASDAQ, US                                                                                                           4%            2014      2015          2016        2017        2018
                                                                                                                                                                            IPO activity in 2016 includes one IPO on BATS exchange.                                         Number of IPOs                    Proceeds US$b

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                   Global IPO trends: Q4 2018 | Page 8
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Americas — US IPO market insight
2018 US IPO markets surpass 2017
deal volume and proceeds
“The US IPO markets will finish the year strong, with both
 volume and proceeds surpassing 2017 levels. A number of
 unicorn companies brought IPOs to market in 2018, with
 more on record stating that they will be conducting IPOs in
 2019. As we head into the new year, we expect IPO volumes
 to remain steady, driven by a number of high quality issuers
 that have kicked off IPO processes.”
 Jackie Kelley
 EY Americas IPO Markets Leader

                                                                Global IPO trends: Q4 2018 | Page 9
Big vs agile? Global IPO trends: Q4 2018 - Mega and unicorn IPOs characterize 2018 deal landscape; trend to continue in 2019 - EY
Americas — US IPO market insight

Highlights from the market                                                                                           Activity Q4 2018
                                                                                                                                                                                                    All amounts in table are in US$

                                                                                                                                                                                                                                               Trends                                                                    Change on
►    Despite market volatility, US IPO activity saw 205 IPOs raising a                                                                                                                                                                                                            2018                                   prior year
     total of US$52.8b in 2018, a year-on-year rise of 14% by volume and
     31% by proceeds.                                                                                                   Sectors                                    IPOs                                                                        Median deal size                      $111.1m                                       4%
                                                                                                                        by highest number of IPOs                  largest by proceeds
►    Health care and technology sectors continue to dominate the US                                                                                                                                                                            Median post-IPO
     exchanges in 2018 by deal number and proceeds.                                                                                                                                                                                                                                  $515.6m                                       1%
                                                                                                                        Health care                                Tencent Music Entertainment Group                                           market cap
►    Twenty-six unicorns (with total proceeds of US$15.0b) came to the                                                  19 IPOs | $2.3b                            $1.4b Media and entertainment, NYSE, China                                 Median post-IPO market cap is calculated for IPOs that were priced by 29 November.
     public market in 2018, a trend we expect will continue into 2019.
►    US exchanges continue to be the destination of choice for foreign                                                  Technology                                 StoneCo Ltd.
     companies. Cross-border IPOs accounted for 29% of US IPOs, with 60                                                 9 IPOs | $2.8b                             $1.4b Technology, NASDAQ, Brazil                                            Cross-border IPOs: top countries/regions of origin 2018
     companies choosing to list in the US from 15 countries during 2018.                                                Media and                                  Moderna Inc.                                                                                                      China 33 IPOs ($9.4b)
►    Positive post-IPO price performance is keeping investors engaged                                                   Entertainment                              $500m Health care, NASDAQ, US

                                                                                                                                                                                                                                                               60
     and encouraging more IPO candidates to come to the market. US IPOs                                                 2 IPOs | $1.8b                                                                                                                                               Europe 13 IPOs ($3.8b)
     have posted average first-day returns of around 15% and average                                                    Consumer products                          Studio City International Holdings Ltd.                                                                           Israel 4 IPOs ($158m)
     current share price post-IPO is up by around 11%.                                                                                                             $413m Media and entertainment, NYSE, Macau
                                                                                                                        2 IPOs | $318m                                                                                                                                               Brazil 3 IPOs ($4.2b)
                                                                                                                                                                                                                                                                 IPOs
                                                                                                                        Financials                                 Livent Corp.                                                                                                      Argentina 2 IPOs ($865m)
                                                                                                                                                                   $391m Materials, NYSE, US
                                                                                                                        2 IPOs | $283m                                                                                                         All amounts in table are in US$

    Markets 2018                                                                      Change on prior year

                                                                                                                     Performance 2018
                                                                                                                                                                                                    All amounts in table are in US$
                                                                                                                                                                                                                                                Outlook
    205 IPOs                                                                                      14%
                                                                                                                                                                                                                                                ►    Although there is limited visibility into the IPO pipeline due
    $52.8b proceeds                                                                               31%                   IPO pricing and performance                                                                                                  to confidential filings, there continues to be rumblings of
                                                                                                                                                                                                                                                     significant IPO activity set to take place during the
    27% of IPOs are financial sponsor-backed                                                      23%                   US
                                                                                                                                               First-day
                                                                                                                                               average return
                                                                                                                                                                                    Share price performance since
                                                                                                                                                                                    IPO (aka offer-to-current)
                                                                                                                                                                                                                                                     first half of 2019 behind the scenes.
                                                                                                                        markets                                                                                                                 ►    Unicorn technology companies garner the majority of the
    300                                           $100        Q4 2018
                                                                                                                     + or – indicates          +15.1%                               +10.6%                                                           headlines, but the IPO pipeline includes industry and
    250                                           $80                                                                change compared           First-day and current average returns are mean returns of issuers who started                         geographical diversity as well as financial sponsor-
    200
                                                  $60          NASDAQ                 NYSE                           with offer price at IPO   trading by 29 November.                                                                               backed companies, signaling continued strength in the US
                                                               $4.3b                  $3.7b                                                                                                                                                          IPO market.
    150

    100
                                                  $40                                                                 Equity indices                                            Volatility index
                                                  $20          27 IPOs                11 IPOs                                                                                                                                                   ►    As markets digest geopolitical developments and increased
     50
                                                                                                                                                                                CBOE VIX®                                                            uncertainty, IPO windows may narrow and issuers that
      0                                           $0                                                                  DJIA                        S&P 500
          2014    2015    2016   2017    2018                                                                                                                                   +87.9% | 20.7 index level                                            are prepared to move nimbly will be rewarded.
                                                                                                                      +1.2%                       +1.0%                         YTD
              Number of IPOs            Proceeds US$b                                                                 US                          US                              + indicates a increase in expected volatility as of
                                                                                                                                                                                  4 December 2018 compared with 29 December
    IPO activity in 2016 includes one IPO on BATS exchange.               All amounts in table are in US$            + or – indicates change since 29 December 2017               2017 for year-to-date (YTD).

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                           Global IPO trends: Q4 2018 | Page 10
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Asia-Pacific
Asia-Pacific IPO markets have reached
crossroads heading into 2019
“Despite a slowdown in Q4 2018 quarter-on-quarter, Asia-
 Pacific IPO markets continued to be a beacon across the
 global IPO landscape in 2018. However, as we head into
 2019, the Asia-Pacific IPO market has reached crossroads. If
 fundamental factors improve, such as greater geopolitical
 certainty, better trade relations or an increase in liquidity, we
 may see improvements in IPO activity as early as the first
 half of 2019. However, if fundamentals remain as they are,
 we may see a short burst of activity in the first half of 2019,
 but sustained improvement in IPO activity may not be
 realized until the second half of the year.”
 Ringo Choi
 EY Asia-Pacific IPO Leader

                                                                     Global IPO trends: Q4 2018 | Page 11
Asia-Pacific

Highlights from the market                                                                                    Markets                                                                                                                   Activity Q4 2018
►    Asia-Pacific continued to dominate global IPO activity in                                                                                                                                                Change on
                                                                                                                                                  Change on
     2018, despite a slowdown in Q4 2018. This region accounted                                                2018                               prior year            Q4 2018                               prior year
                                                                                                                                                                                                                                            Stock              Sectors            IPOs
                                                                                                                                                                                                              quarter
     for six of the top ten exchanges globally by deal number and
     five exchanges by proceeds. 2018 deal volumes were down by                                                                                                                                                                             exchanges          by highest         largest by proceeds
     31% versus 2017, while proceeds were up by 28% due to a                                                   666                                        31%           190                                          30%
                                                                                                                                                                                                                                            by highest total
                                                                                                                                                                                                                                            proceeds
                                                                                                                                                                                                                                                               number of
                                                                                                                                                                                                                                                               IPOs
     number of mega IPOs in this region.                                                                       IPOs                                                     IPOs
►    In Q4 2018, a number of Asia-Pacific IPO candidates,
     particularly in the technology sector, saw their valuations
     decline as liquidity dried up and investors look to deleverage.
                                                                                                               $97.1b                                     28%           $33.4b                                       50%
                                                                                                               proceeds                                                 proceeds
     Poor post-IPO stock price performance over the last several                                                                                                                                                                            Tokyo (TSE),       Technology         SoftBank
     quarters was partly to blame. The good news is that the                                                                                                                                   All amounts in table are in US$              MOTHERS
     number of IPO candidates bringing their companies to                                                                                                                                                                                                      34 IPOs            Corp.
                                                                                                                                                                                                                                            and JASDAQ
     market remain high, despite investor sentiment, largely                                                                                                                                                                                                   $1.0b              $21.1b
     because the cost of capital is set to rise. However, it may take                                                                                                                                                                       $21.6b                                Telecommunications
     some time before IPO pricing rebounds.                                                                   Main markets                                              Junior markets                                                      30 IPOs                               Japan
     In Greater China, the IPO market remains a bright spot                                                                                       Change on                                                   Change on Q4                                                        Tokyo (TSE)
►                                                                                                             Q4 2018                             Q4 2017
                                                                                                                                                                        Q4 2018                               2017                          Japan
     among global IPO markets. Hong Kong exchanges saw higher

                                                                                                              103                                                       87
     levels of IPO activity in 2018 whereas Mainland China saw
     lower levels of activity compared with 2017.                                                                                                         40%                                                        14%                    Hong Kong          Industrials        Thailand
                                                                                                              IPOs                                                      IPOs
                                                                                                                                                                                                                                            (Main and          33 IPOs            Future Fund
►    In Japan, the big story in 2018 was the rise of the unicorns                                                                                                                                                                           GEM)
     (two IPOs raising US$1.5b together). In Q4 2018, technology                                                                                                                                                                                               $2.5b              $1.4b
     giant SoftBank Corp. went public, making it Japan’s largest
     IPOs ever to date and the largest IPO in 2018 globally.
                                                                                                              $30.9b                                      59%
                                                                                                                                                                        $2.5b                                        14%                    $4.4b                                 Industrials
                                                                                                                                                                                                                                                                                  Thailand
                                                                                                              proceeds                                                  Proceeds                                                            42 IPOs                               Thailand (SET)
►    Australia hoped for a strong finish to 2018, but poor                                                                                                                                                                                  Hong Kong
     performance of global stock markets caused many IPO                                                        700                                            $100      400                                               $14

     candidates to rethink their listings. Overall, 2018 volumes                                                                                                                                                                            Thailand
     declined 11% by volume but increased 129% by proceeds
                                                                                                                600
                                                                                                                                                               $90
                                                                                                                                                               $80
                                                                                                                                                                         350                                               $12
                                                                                                                                                                                                                                                               Materials          People's
                                                                                                                500
                                                                                                                                                                         300
                                                                                                                                                                                                                           $10              (SET + MAI)        29 IPOs            Insurance Co.
     versus 2017.                                                                                                                                              $70
                                                                                                                                                                         250
                                                                                                                400                                            $60                                                         $8               $2.1b              $1.7b              (Group) of
►    In Southeast Asia, geopolitical uncertainties, trade tensions                                                                                             $50       200

                                                                                                                                                                                                                                            10 IPOs
                                                                                                                                                                                                                           $6
                                                                                                                                                                                                                                                                                  China Ltd.
                                                                                                                300
     and macroeconomic conditions in the region resulted in a                                                                                                  $40
                                                                                                                                                               $30
                                                                                                                                                                         150
                                                                                                                200                                                                                                        $4
     decline in IPO volume of 7%, while proceeds fell by 34%.
                                                                                                                100
                                                                                                                                                               $20
                                                                                                                                                                         100

                                                                                                                                                                          50                                               $2
                                                                                                                                                                                                                                            Thailand                              $872m
►    By deal volume, industrials, technology and materials                                                                                                     $10
                                                                                                                                                                                                                                                                                  Financials
                                                                                                                  0                                            $0          0                                               $0
     topped the list in Asia-Pacific IPO activity in 2018; while                                                      2014    2015    2016   2017    2018                       2014 2015 2016 2017 2018
                                                                                                                                                                                                                                                                                  China
     telecommunications, technology and financials led by proceeds.                                                                                                                                                                                                               Shanghai (SSE)
                                                                                                                                                    Number of IPOs             Proceeds US$b
►    In 2018 the proportion of cross-border IPO activity by Asia-
                                                                                                                                                                                               All amounts in table are in US$                                                      All amounts in table are in US$
     Pacific companies rose by deal number, compared with 2017.

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover           Global IPO trends: Q4 2018 | Page 12
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Asia-Pacific

   Trends
       Cross-border activity 2018                                                                                                                                                                       Transaction sizes
                                                                                                                                                                                                                                      Main markets                                        Junior markets
    Asia-Pacific issuers’
                                                                                                                                                                                                                                      2018                      Change on prior year      2018                        Change on prior year
    cross-border activity
    Percentage of all Asia-Pacific issuers                                                                                                                                                              Median post-
                                                                                                                                                                                                        IPO market cap                $138.3m                                27%          $40.3m                                   54%

                                                                                 Cross-border                                                                      24
        8%                                            9%

                                                                                                                                                                                                                                      $37.3m                                              $9.9m
                                           6%
                    5%         6%                                                                                                                                                                       Median                                                               20%                                                   51%
                                                                                                                                                                                                        deal size
                                                                                 3.4% of all Asia-Pacific issuers* listed                                            IPOs                                                               $300                                               $100
                                                                                 abroad but within the Asia-Pacific region                                                                              Trends
                                                                                                                                                                                                                                                                                            $80
       2014       2015        2016       2017        2018
                                                                                                                                                                                                                                        $200
                                                                                                                                                                                                             Median post-IPO                                                                $60
                                                                                                                                                                                                             market cap US$m
                                                                                                                                                                                                                                                                                            $40

                                                                                 Outbound
                                                                                                                                                                                                                                        $100

                                                                                                                                                                   41
                                                                                                                                                                                                             Median deal size                                                               $20
                                                                                                                                                                                                             US$m
                                                                                                                                                                                                                                         $0                                                  $0

             Despite declines in
                                                                                                                                                                                                                                               2014   2015     2016   2017   2018                  2014    2015    2016     2017    2018
                                                                                 5.9% of all Asia-Pacific issuers* listed                                             IPOs
             most IPO markets                                                    outside Asia-Pacific
             across the region                                                                                                                                                                          Sources of IPOs
             during 2018, Asia-
                                                                                                                                                                                                        2018
             Pacific exchanges
                                                                                 Inbound
                                                                                                                                                                                                                                                  Percentage
                                                                                                                                                                                                                                  3.7%     2.3%                                 86%         93%         95.5%        95%           94%
                                                                                                                                                                                                                                                  of proceeds

                                                                                                                                                                   10
             represented six of the                                                                                                                                                                                              5.8%
             top ten exchanges                                                                                                                                                                             Percentage
                                                                                                                                                                                                                                          0.6%
                                                                                 7.8% of cross-border IPOs globally**
             globally by volume in                                               listed in Asia-Pacific but came from                                                 IPOs
                                                                                                                                                                                                           of IPOs
             2018, and five of the                                               outside the region                                                                                                                             93.6%
             top ten by proceeds.                                                                                                                                                                                                                                                1%
                                                                                                                                                                                                                                                                                             1%           0.3%       0.3%          0%
                                                                                                                                                                                                                          94.0%                                                 13%          6%                       5%           6%
                                                                                 *There were 688 IPOs by Asia-Pacific issuers in YTD 2018. This analysis is based on the listed
                                                                                                                                                                                                                                                                                                          4.2%
                                                                                 company domicile, regardless of the listed company exchange.                                                                                                                                  2014         2015          2016       2017          2018
                                                                                 ** There were 130 cross-border IPOs globally in YTD 2018.                                                                              Financial sponsor-backed  Former state-owned enterprises  Non-financial sponsor-backed

                                                                                                                                                                                                                                                                  All amounts in table are in US$. Figures may not total 100% due to rounding.

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                             Global IPO trends: Q4 2018 | Page 13
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Asia-Pacific

    Performance
      IPO pricing and performance 2018                                                                              Equity indices 2018                                                                                                                        Volatility index
                                                                  Share price
                                    First-day                                                                       Hang Seng                             Nikkei 225                                        ASX 200                                            Hang Seng Volatility
                                                                  performance since
                                    average return
                                                                  IPO                                               -8.9%                                 -3.2%                                             -5.8%                                              24.83 index level
                                                                                                                    Hong Kong                             Japan                                             Australia                                          +36.6%
                                    +17.0% +9.1%
                                                                                                                                                                                                                                                               YTD
      Main markets
                                                                                                                    Shanghai                              FTSE Straits Times                                KOSPI                                              +10.2%
                                                                                                                    Composite                             -1.4%                                             -14.3%                                             Q4 2018
      Junior markets                +40.3% +97.2%                                                                   -19.4%                                Singapore                                         South Korea
                                                                                                                    Mainland China
                                                                                                                                                                                                                                                               + indicates an increase in volatility as at 4 December 2018 compared
                                                                                                                                                                                                                                                               with 29 December 2017 for year-to-date (YTD) and 28 September
                                                                                                                                                                                                                                                               2018 for end of Q3 2018. Whereas - indicates a decrease in volatility
    + or – indicates change compared with offer price at IPO                                                      + or – indicates change since 29 December 2017                                                                                               over the same time period.

Outlook
►    As we head into 2019, the Asia-Pacific IPO markets have reached                                              ►    Mainland China continues to see lower levels of IPO activity as the                                               substantial investor capital away from the IPO market, making it
     crossroads. If there is a turnaround in economic fundamentals                                                     regulator continues to slow the pace of reviews and delay listing                                                 more difficult for small- to mid-size IPOs to achieve higher valuations
     (greater geopolitical certainty, better trade relations and an increase                                           approvals. However, the IPO pipeline remains strong. Although mega                                                in Q1 2019.
     in liquidity), we expect higher levels of IPO activity in 2019.                                                   IPOs with strong fundamentals may wait for the IPO window to                                                 ►    In Australia, investors will continue to be selective in which larger
     However, if the fundamentals remain as they are, we may see a                                                     reopen to avoid a huge IPO discount, we expect stable IPO activity in                                             IPOs (by deal size) they support, restricting IPO volumes at the top
     short burst of activity in Q1 2019, but may have to wait until the                                                the region going into 2019.                                                                                       end of the market in 2019. IPO activity instead will focus on smaller-
     second half of 2019 for a sustained improvement in IPO activity.                                             ►    In Hong Kong, despite ongoing geopolitical and trade issues, the IPO                                              cap issuers, mining and metals and technology companies.
►    Several sectors are expected to remain active. Technology and                                                     pipeline remains strong going into 2019. The number of companies                                             ►    Southeast Asia will remain relatively quiet in the first half of 2019.
     media and entertainment issuers will continue to drive Asia-Pacific                                               filing to go public in Hong Kong has jumped almost three-fold this                                                If geopolitical and trade uncertainties stabilize globally, then this
     IPO markets in 2019. At the other end of the spectrum, traditional                                                year, driven in part by China’s burgeoning technology sector and                                                  region may see an uptick in IPO activity in the second half of 2019.
     sectors such natural resources may be looking to increase their                                                   listing reforms designed to attract high-growth technology and                                                    During the second half of 2018, the Thai and Indonesian exchanges
     IPO presence as persistent trade issues with the US make oil and gas                                              biotechnology companies. However, there could be headwinds in the                                                 experienced higher IPO activity, while other emerging markets were
     IPOs more attractive, and some investors are looking to go back to                                                form of weaker secondary markets, which could impact IPO activity.                                                marred by volatility in equity markets. We expect this trend to
     the basics. In the short term, we expect investor appetite will trend                                        ►    The outlook for the Japan IPO market remains strong as we go into                                                 continue into 2019.
     toward more traditional IPOs as investors look to limit their risk.                                               2019. However, the SoftBank Corp. IPO may have absorbed

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                     Global IPO trends: Q4 2018 | Page 14
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Asia-Pacific — Greater China market insight
Early preparation remains key to
capturing the IPO window in 2019
“Despite the geopolitical issues, which created market volatility
 during Q4 2018, Greater China exchanges posted a modest
 increase in IPO proceeds in 2018 compared with 2017. New
 listing rules on weighted voting rights and pre-revenue biotech
 companies have attracted high-profile technology and biotech
 companies to list in Hong Kong. In Mainland China, a new science
 and technology innovation board will fast-track the listing of
 quality high-tech and advanced manufacturing companies. With
 volatility set to continue in 2019, successful issuers will be those
 that are well-prepared and ready to capture the IPO window when
 it opens.”
 Terence Ho
 EY Greater China IPO Leader

                                                                        Global IPO trends: Q4 2018 | Page 15
Asia-Pacific — Greater China market insight

Highlights from the markets                                                                                    Markets                                                                                                                  Activity Q4 2018
►    As a whole, the Greater China IPO market remains a bright
     spot in the global IPO market. Hong Kong markets saw higher                                               2018
                                                                                                                                                   Change on
                                                                                                                                                                          Q4 2018
                                                                                                                                                                                                             Change on
                                                                                                                                                                                                             prior year
                                                                                                                                                                                                                                         Hong Kong Main Market
                                                                                                                                                   prior year
     deal numbers and proceeds. Meanwhile, Mainland China saw a                                                                                                                                              quarter

     slow down in IPO activity during 2018 compared with 2017.                                                                                                                                                                              Sectors                       IPOs
►    The Hong Kong Main Market and Growth Enterprise Market                                                    307                                        49%             62                                        56%                     by highest number of IPOs     largest by proceeds
     (GEM) was the most active stock exchange globally by both                                                 IPOs                                                       IPOs
                                                                                                                                                                                                                                                                          Fosun Tourism Group
     deal number and proceeds in 2018 (197 IPOs, US$35.4b).                                                                                                                                                                                 Real estate
►    Hong Kong markets saw a rise of 24% and 120% by volume                                                    $56.7b                                     13%             $7.7                                      42%                     7 IPOs | $812m
                                                                                                                                                                                                                                                                          $486m
                                                                                                                                                                                                                                                                          Media and entertainment
     and proceeds, respectively, in 2018 compared with 2017.                                                   proceeds                                                   proceeds
                                                                                                                                                                                                                                                                          Innovent Biologics Inc.
     New listing rules for new economy companies that became                                                                                                                                 All amounts in table are in US$
                                                                                                                                                                                                                                            Materials
     effective in April 2018, as well as a couple of mega and unicorn
                                                                                                                                                                                                                                            6 IPOs | $691m                $485m
     IPOs, were largely responsible for higher activity levels. But                                                                                                                                                                                                       Health care
     investor sentiment began to waver in Q4 2018 as the average                                               Hong Kong Main Market                                      Shanghai and Shenzhen                                                                           Xinyi Energy Holdings Ltd.
     oversubscription rates levelled off at 80% compared with 100%                                                                                                                                                                          Industrials
     in the first half of 2018.                                                                                Q4 2018
                                                                                                                                                   Change on
                                                                                                                                                   Q4 2017                Q4 2018
                                                                                                                                                                                                             Change on
                                                                                                                                                                                                             Q4 2017
                                                                                                                                                                                                                                            5 IPOs | $187m                $450m
                                                                                                                                                                                                                                                                          Energy
►    Hong Kong equity market appears to have underestimated both
     the consequences and duration of the geopolitical uncertainty.
                                                                                                               34                                           7%            18                                        80%

     This change in market expectations may have a negative                                                    IPOs                                                       IPOs                                                           Shanghai and Shenzhen
     impact on IPOs coming to the market in the next few
     months as well as those in the pipeline.                                                                  $4.4b                                      23%             $3.2b                                     63%                     Sectors                       IPOs
                                                                                                               proceeds                                                   proceeds                                                          by highest number of IPOs     largest by proceeds
►    In Mainland China, a sluggish stock market, pessimistic
     market sentiment and increasing trade tensions took their                                                                                                                                                                                                            People's Insurance Company (Group)
     toll on the equity and IPO markets. Shanghai and Shenzhen
                                                                                                                140                                             $35      450
                                                                                                                                                                         400
                                                                                                                                                                                                                       $40
                                                                                                                                                                                                                                            Industrials                   of China Ltd.
                                                                                                                                                                                                                                                                          $872m
                                                                                                                120                                             $30                                                    $35
     Exchanges posted 105 IPOs with proceeds of US$21.2b in
                                                                                                                100                                             $25
                                                                                                                                                                         350                                           $30                  7 IPOs | $581m
     2018, a decline of 76% by volume and 38% by proceeds                                                                                                                300
                                                                                                                                                                                                                       $25
                                                                                                                                                                                                                                                                          Financials, Shanghai
                                                                                                                 80                                             $20
     compared with 2017.                                                                                                                                                 250
                                                                                                                                                                                                                       $20                                                Shenzhen Mindray Bio-Medical

►    Given the poor post-IPO performance of some recent IPOs, it
                                                                                                                 60                                             $15      200
                                                                                                                                                                                                                       $15                  Financials                    Electronics Co. Ltd.
                                                                                                                                                                                                                                                                          $864m
                                                                                                                                                                         150

                                                                                                                                                                                                                                            4 IPOs | $1,459m
                                                                                                                 40                                             $10
                                                                                                                                                                                                                       $10
     may be some time before a rebound in IPO valuations. At the                                                                                                         100
                                                                                                                 20                                             $5
                                                                                                                                                                          50                                           $5                                                 Health care, Shenzhen-Chinext
     same time, the pipeline of IPO candidates and investor                                                       0                                             $0         0                                           $0
     sentiment for A-share IPOs remain strong, with almost all                                                                                                                                                                                                            China Great Wall Securities Co. Ltd.
                                                                                                                      2014 2015 2016 2017 2018                                 2014 2015 2016 2017 2018
                                                                                                                                                                                                                                            Health care
     companies achieving the maximum first-day returns of 44%.                                                                                                                                                                                                            $286m
►    By proceeds, technology, telecommunications and financials
                                                                                                                                                      Number of IPOs            Proceeds US$b
                                                                                                                                                                                                                                            3 IPOs | $985m                Financials, Shenzhen
     were the most active sectors in Greater China. By volume,                                                             Shenzhen includes both listings on the Mainboard, Small and Medium Enterprise board and ChiNext
                                                                                                                                                                                             All amounts in table are in US$                                                            All amounts in table are in US$
     industrials dominated, followed by technology and consumer
     products.
All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover            Global IPO trends: Q4 2018 | Page 16
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Asia-Pacific — Greater China market insight

   Trends
       Cross-border activity 2018                                                                                                                                                                       Transaction sizes
                                                                                                                                                                                                                                      Hong Kong Main Market                               Shanghai and Shenzhen
      Greater China issuers’                                                        To which destination?                                                                   2018                                                      2018                      Change on prior year      2018                        Change on prior year
      cross-border activity
      Percentage of all China issuers                                                  35 IPOs to US exchanges                                                                                          Median post-
                                                                                                                                                                                                        IPO market cap                $127.9m                                14%          $467.5m                                110%

                                                                                       1 IPO to South Korea’s KOSDAQ
                                                                11%
                                                                                                                                                                                                        Median
                                                                                                                                                                                                                                      $32.1m                                              $90.4m
         10%
                                                                                                                                                                                                                                                                             18%                                                   70%
                                     6%            5%
                                                                                                                                                                                                        deal size
                       4%

                                                                                                                                                                                                        Trends                         $500                                                 $500

                                                                                                                                                                                                                                       $400                                                 $400
        2014          2015          2016         2017          2018
                                                                                                                                                                                                             Median post-IPO
                                                                                                                                                                            2018                             market cap US$m
                                                                                                                                                                                                                                       $300                                                 $300

                                                                                                                                                                                                                                       $200                                                 $200

            Although Hong Kong                                                      Leaving Greater China                                                                                                    Median deal size          $100                                                 $100

                                                                                                                                                                   36
                                                                                                                                                                                                             US$m

                                                                                    Outbound
                                                                                                                                                                                                                                         $0                                                   $0
            saw a slowdown in both                                                                                                                                                                                                             2014    2015    2016   2017   2018                   2014    2015    2016    2017     2018

            deal number and funds                                                                                                                                     IPOs
            raised in Q4 2018                                                       11.3% of Greater China issuers* listed abroad
                                                                                                                                                                                                        Sources of IPOs
            compared with Q3
            2018, which was                                                                                                                                                                             2018
                                                                                    Coming to Greater China                                                                                                                         2%
                                                                                                                                                                                                                                                 Percentage                    90%          94%        99.1%         99%        99.6%
            impacted by lagged                                                                                                                                                                                                                   of proceeds
            market reflection on
            China-US trade dispute,                                                 Inbound                                                                        21                                     Percentage
                                                                                                                                                                                                          of IPOs
                                                                                                                                                                                                                                  0.3%

                                                                                    16.4% of cross-border IPOs globally**                                             IPOs
            it ranks first in terms of
                                                                                    were listed on HKEx and GEM                                                                                                                   99.4                                          1%
            both deal number and                                                                                                                                                                                         97%       %
                                                                                                                                                                                                                                                                                9%
                                                                                                                                                                                                                                                                                             1%
                                                                                                                                                                                                                                                                                                        0.3%
                                                                                                                                                                                                                                                                                             5%
            funds raised in 2018.                                                   *There were 314 IPOs by Greater China issuers in YTD 2018. This analysis is based on the                                                                                                   2014         2015
                                                                                                                                                                                                                                                                                                        0.6%
                                                                                                                                                                                                                                                                                                        2016
                                                                                                                                                                                                                                                                                                                    0.7%
                                                                                                                                                                                                                                                                                                                    2017
                                                                                                                                                                                                                                                                                                                                 0.3%
                                                                                                                                                                                                                                                                                                                                 2018
                                                                                    listed company domicile, regardless of the listed company exchange.
                                                                                    ** There were 130 cross-border IPOs globally in YTD 2018.                                                                               Financial sponsor-backed  Former state-owned enterprises  Non-financial sponsor-backed

                                                                                                                                                                                                                                                                  All amounts in table are in US$. Figures may not total 100% due to rounding.

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                             Global IPO trends: Q4 2018 | Page 17
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Asia-Pacific — Greater China market insight

    Performance                                                                                                                                                                                                                                                IPO pipeline
      IPO pricing and performance 2018                                                             Equity indices 2018 Mainland China                                                                                                                          More than                    More than

                                                                                                                                                                                                                                                               270 227
                                                               Share price                         Shanghai Composite                               Shenzhen Composite                                Shenzhen SME
                             First-day
                                                               performance
                             average return
                                                               since IPO                           -19.4%                                           -27.0%                                            -33.7%
      Hong                                                                                                                                                                                                                                                     companies are               companies
      Kong Main
      Market
                             +1.2%                             -12.6%                              Equity indices 2018 Hong Kong                                                                    Volatility index                                           in the China                have
                                                                                                   Hang Seng                   Hang Seng                      Hang Seng                             Hang Seng Volatility                                       Securities                  submitted
      Shanghai
      and
      Shenzhen
                             +44.0%                            +61.5%                              -8.9%                       China                          China Affiliated                      20.0 index level                                           Regulatory
                                                                                                                                                                                                                                                               Commission
                                                                                                                                                                                                                                                                                           public filings
                                                                                                                                                                                                                                                                                           with HKEx.
                                                                                                                               Enterprises                    Corporations                          +36.6% YTD
                                                                                                                               -6.9%                          -0.4%                                 +10.2% Q3 2018                                             (CSRC) pipeline.

                                                                                                                                                     + indicates an increase in volatility as at 4 December 2018 compared with 29 December 2017 for year-to-
    + or – indicates change compared with offer price at IPO                                      + or – indicates change since 29 December 2017     date (YTD) and 28 September 2018 for end of Q3 2018. Whereas - indicates a decrease in volatility.

Outlook
►    The extent and duration of the geopolitical uncertainty and trade                                                 under a new registration system. This should speed up IPO                                                     ►    In Hong Kong, we expect quality IPO candidates will continue to find
     tensions will create headwinds for IPO activity in 2019. That said,                                               approvals and improve the pace of IPO activity for 2019 and beyond,                                                the right windows to issue IPOs even as investors deal with stricter
     more unicorn companies in the technology, education, consumer                                                     particularly for advanced manufacturing and high-tech issuers.                                                     requirements on a company’s quality and valuation. Overall, HKEx
     products and health care sectors are expected to come to the public                                          ►    China has also modified regulations around the lockup period for IPO                                               regulatory reforms will continue to play a positive role in attracting IPO
     capital markets in 2019.                                                                                          rejected companies to improve the quality of listed companies, and                                                 candidates. As we look ahead, companies remain optimistic in their
►    In Mainland China, the regulator China Securities Regulatory                                                      tightened rules for delisting as a precursor to the implementation of                                              desire to go public, with more than 225 companies having issued
     Commission (CSRC) continues to control IPO approvals. As such, IPO                                                the IPO registration system.                                                                                       application proofs. We anticipate that telecommunications, media and
     reviews will continue to be strict. However, we anticipate that IPO                                                                                                                                                                  entertainment, technology and consumer products to be the most active
                                                                                                                  ►    In addition, in December 2018, China and the UK will likely
     activity will be more active in 2019 compared with 2018,                                                                                                                                                                             sectors on the Hong Kong market.
                                                                                                                       announce the new Stock Connect program between Shanghai and
     particularly as the CSRC pipeline continues to decline.                                                           London that will see companies from the UK and Mainland China                                                 ►    However, Hong Kong investors will want to be cautious of new
►    In November, the Mainland China Government announced its decision                                                 listing and trading on each other’s exchanges.                                                                     share listings. Geopolitical uncertainty, trade issues and a likely
     to launch the science and technology innovation board at the                                                                                                                                                                         increase in interest rates could impact the capital markets, and, by
     Shanghai Stock Exchange in 2019. This new board will operate                                                                                                                                                                         extension, investor sentiment for IPOs.

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                 Global IPO trends: Q4 2018 | Page 18
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Asia-Pacific — Japan market insight
Steady growth and blockbuster IPOs
set Japan on a strong course for 2019
“Japan saw a variety of IPOs came to the public markets in 2018,
 from a giant telecommunications company, to two unicorn
 startups and numerous technology and consumer product
 companies. As the country’s IPO market steadily grows, and the
 flow of foreign investments into Japan’s markets continues to
 rise, we expect a new and interesting mix of IPOs to emerge in
 2019.”
 Shinichiro Suzuki
 EY Japan IPO Leader

                                                                   Global IPO trends: Q4 2018 | Page 19
Asia-Pacific — Japan market insight

Highlights from the market                                                                                    Markets                                                                                                                    Activity Q4 2018
►    Japan ends 2018 on a high note with 31 IPOs in Q4 2018                                                                                         Change on
                                                                                                                                                                                                             Change on
                                                                                                               2018                                                      Q4 2018                             prior year
     with total proceeds of US$21.6b. Overall, Japan posted 97                                                                                      prior year
                                                                                                                                                                                                             quarter                        Sectors                            IPOs                               Tokyo Main
     IPOs in 2018, a modest 2% increase in terms of volume, but                                                                                                                                                                                                                                                   Market
     representing a massive 333% increase over 2017 proceeds.                                                  97                                                 2%     31                                        16%
                                                                                                                                                                                                                                            by highest
                                                                                                                                                                                                                                            number of IPOs
                                                                                                                                                                                                                                                                               largest by
                                                                                                                                                                                                                                                                               proceeds                           IPO pricing and
     This can be attributed to the listing of telecommunications                                               IPOs                                                      IPOs                                                                                                                                     performance
     giant SoftBank Corp. (a subsidiary of SoftBank Group Corp.
     (SBG)) on the Tokyo Stock Exchange in the second half of                                                  $26.4b                                      333%          $21.6b                                  698%
     December, with expected proceeds of US$21.1b to                                                           Proceeds                                                  proceeds
     US$23.5b, making it Japan’s largest IPOs ever.
►    Strong Abenomics reform policies, combined with Japan’s                                                   $10.3m                                        15%         $7.1m                                     40%                      Technology                         SoftBank                           First-day
     hosting of the Rugby World Cup in 2019 and the Olympics in                                                median deal size                                          median deal size                                                   11 IPOs                            Corp.                              average return
     2020 are contributing to Japan’s strong economy. Meanwhile,                                                                                                                                                                            $61m                               $21.1b
     the performance and profitable growth of the country’s larger                                             Tokyo Main Market                                         JASDAQ and MOTHERS
                                                                                                                                                                                                                                                                                                                  +1.6%
                                                                                                                                                                                                                                                                               Telecoms
     companies have exceeded 2017 levels in 2018. Japan’s                                                                                           Change on                                                Change on                                                         Tokyo (TSE)
                                                                                                               Q4 2018                              prior year           Q4 2018                             prior year
     favorable relationship with China has allowed Japan to sidestep                                                                                quarter                                                  quarter
     the trade tensions that have impacted economies in other parts
     of the world. These positive economic and financial factors                                               4                                          64%            27                                        17%
                                                                                                                                                                                                                                                                                                                  Share price
     are feeding investor confidence and maintaining their                                                     IPOs                                                      IPOs                                                               Consumer                           ARTERIA                            performance
                                                                                                                                                                                                                                            products                           Networks                           since IPO
     appetite to invest in major companies, startups and IPOs.
     In 2018, technology was the primary driver of IPOs as Japan
                                                                                                               $21.3b                                   808%             $0.3b                                     14%                      5 IPOs                             Corp.
                                                                                                                                                                                                                                                                                                                  -12.5%
►
     entered the unicorn era, with Mercari, Inc. and MTG Co. Ltd.                                              proceeds                                                  proceeds
                                                                                                                                                                                                                                            $42m                               $204m
     leading the way. However, the biggest story of the year, was the
     mega IPO by telecommunications company SoftBank Corp.
                                                                                                               $101.5m                                      5%           $6.7m                                     39%
                                                                                                                                                                                                                                                                               Telecoms
                                                                                                                                                                                                                                                                               Tokyo (TSE)                        + or – indicates change
                                                                                                               median deal size                                          median deal size                                                                                                                         compared with offer price
                                                                                                                                                                                                                                                                                                                  at IPO
►    Following Prime Minister Abe’s recent re-election, he is expected                                          30                                               $26    90                                             $3.0
     to lead Japan until 2021. This ongoing political stability                                                                                                                                                        $2.8
                                                                                                                                                                                                                                            Industrials                        Autonomous
                                                                                                                                                                 $22    80                                             $2.6
                                                                                                                25
     create favorable conditions for Japan’s economy and IPO                                                                                                            70                                             $2.4
                                                                                                                                                                                                                       $2.2                                                                                       Equity
                                                                                                                                                                                                                                                                               Control
                                                                                                                                                                 $18
     markets.
                                                                                                                20
                                                                                                                                                                 $14
                                                                                                                                                                        60                                             $2.0
                                                                                                                                                                                                                       $1.8                 3 IPOs                                                                index
                                                                                                                                                                                                                                                                               Systems
                                                                                                                                                                        50
                                                                                                                                                                                                                                            $87m
                                                                                                                15                                                                                                     $1.6
►    Looking ahead to 2019, we expect Japan to launch around 90                                                                                                  $10    40                                             $1.4
                                                                                                                                                                                                                       $1.2
     to 100 IPOs next year, similar to 2018 deal volume. However,                                                                                                                                                                                                              Laboratory
                                                                                                                                                                                                                                                                                                                  Nikkei 225
                                                                                                                10                                                      30                                             $1.0
                                                                                                                                                                 $6                                                    $0.8
                                                                                                                                                                                                                                                                               Ltd.
                                                                                                                                                                        20
     the SoftBank Corp. IPO may absorb substantial amount of                                                     5
                                                                                                                                                                                                                       $0.6

                                                                                                                                                                                                                                                                                                                  -3.2%
                                                                                                                                                                 $2                                                    $0.4
                                                                                                                                                                        10
     investors’ funds from the IPO market. We expect more small- to                                                                                                                                                                                                            $73m
                                                                                                                                                                                                                       $0.2
                                                                                                                 0                                               -$2      0                                            $0.0
     mid-size IPOs to come in Q1 2019, but these issuers may face                                                    2014    2015    2016    2017    2018                     2014    2015    2016    2017    2018                                                                                                Japan
                                                                                                                                                                                                                                                                               Industrials
     lower IPO valuations. The good news, however, is that the ratio                                                                                  Number of IPOs           Proceeds US$b                                                                                   MOTHERS
     of overseas investors continues to rise, bringing new                                                                                                                                   All amounts in table are in US$                                   All amounts in table are in US$. + or – indicates change since 29 December 2017
     investment funds into the Japan IPO markets.

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                               Global IPO trends: Q4 2018 | Page 20
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Europe, Middle East, India and Africa
EMEIA IPO markets buoyed by strong
fundamentals and investor confidence
“The EMEIA IPO market continues to be buffeted by waves of
 uncertainty owing to geopolitical tensions, trade issues between
 the US, EU and China, and the looming exit of the UK from the
 EU. However, the region increased its global market share and
 hosted two of the five largest IPOs globally during 2018. While
 the flow of IPO activity may remain slower than usual in Q1
 2019, with strong economic fundamentals and the backing of
 investors, we expect EMEIA IPO markets will remain a dominant
 force globally in 2019. We expect to see IPOs from a diversified
 group of IPO bound companies from unicorns, family businesses,
 carve-outs and high growth businesses.”
 Dr. Martin Steinbach
 EY Global and EY EMEIA IPO Leader

                                                                    Global IPO trends: Q4 2018 | Page 21
Europe, Middle East, India and Africa

 Highlights from the markets                                                                                  Markets                                                                                                                   Activity Q4 2018
 ►   Geopolitical tensions had a clear impact on EMEIA IPO activity in                                                                             Change on
                                                                                                                                                                                                            Change on
                                                                                                               2018                                                      Q4 2018                            prior year
     2018, as deal volume dropped 16% compared with 2017. An                                                                                       prior year
                                                                                                                                                                                                            quarter                         Stock              Sectors               IPOs
     unclear path to Brexit, political changes in Germany and                                                                                                                                                                               exchanges
     Italy, and US trade and tariff uncertainties all had a direct                                             432                                        16%            79                                       47%                       By highest
                                                                                                                                                                                                                                                               by highest
                                                                                                                                                                                                                                                               number of IPOs
                                                                                                                                                                                                                                                                                     largest by
                                                                                                                                                                                                                                                                                     proceeds
     impact on EMEIA economies and IPO activity.                                                               IPOs                                                      IPOs                                                               proceeds
 ►   Despite these challenges, EMEIA exchanges remained strong
     as the world’s second-largest IPO market. EMEIA accounted                                                 $47.7b                                     26%            $12.0b                                   43%
     for 32% of global volume and 23% by proceeds in 2018. EMEIA                                               proceeds                                                  proceeds
                                                                                                                                                                                            All amounts in table are in US$
     accounted for three of the top ten exchanges by proceeds
     (Germany, UK and India) and one by volume (India).                                                                                                                                                                                     Deutsche           Technology            Knorr-
 ►   In Europe, Northern EU economies remain stable and interest                                                                                                                                                                            Börse              16 IPOs               Bremse AG
     rates remain low. However, geopolitical issues and trade                                                  Main markets                                              Junior markets                                                     (Main+Scale)       $485m                 $4.4b
     tensions continue to mute investor confidence. 2018 IPO deal
                                                                                                               Q4 2018
                                                                                                                                                   Change on
                                                                                                                                                   prior year            Q4 2018
                                                                                                                                                                                                            Change on
                                                                                                                                                                                                            prior year
                                                                                                                                                                                                                                            $4.6b                                    Germany
     volumes fell by 16% and proceeds fell by 17%, versus 2017.                                                                                    quarter                                                  quarter                         3 IPOs                                   Industrials
                                                                                                                                                                                                                                                                                     Deutsche Börse
 ►   UK markets remain active, despite the Brexit turmoil. The
     London Main Market and AIM ranked seventh place within the                                                39                                         37%            40                                       54%
                                                                                                                                                                                                                                            Germany

     top ten exchanges globally by proceeds in 2018. UK IPOs raised                                            IPOs                                                      IPOs
                                                                                                                                                                                                                                            London             Industrials           Aston Martin
 ►
     US$8.5b from 51 IPOs.
     In India, a liquidity crisis among non-bank lenders caused a
                                                                                                               $11.6b                                     41%
                                                                                                                                                                         $0.3b                                    76%
                                                                                                                                                                                                                                            (Main and          14 IPOs               Lagonda Global
                                                                                                               proceeds                                                  proceeds
     correction in the Indian stock market in Q4 2018. At the same                                                                                                                                                                          AIM)               $6,792m               Holdings plc
     time, foreign investors continue to be net sellers of equity, which                                                                                                                                                                    $2.7b                                    $1.4b
     has triggered in a drop in the Indian rupee. In 2018, Indian                                               250                                             $80     350                                           $7.0
                                                                                                                                                                                                                                            13 IPOs                                  UK
     exchanges saw 161 IPOs, raising US$5.5b in capital.                                                                                                                300                                           $6.0                  UK                                       Industrials
                                                                                                                200
 ►   In the Middle East and North Africa (MENA), volatility in oil                                                                                              $60                                                                                                                  London (LSE)
                                                                                                                                                                        250                                           $5.0
     prices, coupled with geopolitical tensions in the region and                                               150
     volatility in global equity markets have caused investors in                                                                                               $40
                                                                                                                                                                        200                                           $4.0
                                                                                                                                                                                                                                            Euronext &         Consumer              Neoen SA
     MENA IPO markets to press pause. As a result, IPO candidates                                               100                                                     150                                           $3.0
                                                                                                                                                                                                                                            Alternext          products              $807m
     have put their transactions on hold until favorable conditions                                                                                                                                                                         $1.5b
     return in the region.                                                                                       50
                                                                                                                                                                $20
                                                                                                                                                                        100                                           $2.0
                                                                                                                                                                                                                                                               12 IPOs               France
                                                                                                                                                                                                                                                                                     Energy
                                                                                                                                                                          50                                          $1.0
                                                                                                                                                                                                                                            5 IPOs             $617m                 Euronext (Paris)
 ►   Technology and industrials posted the highest deal numbers                                                   0                                             $0         0                                          $0.0                  Netherlands,
     in EMEIA in Q4 2018, while industrials overwhelmingly drove                                                      2014 2015 2016 2017 2018                                 2014 2015 2016 2017 2018                                     Belgium, Paris,
     proceeds. For 2018, technology, industrials and consumer                                                                                                                                                                               Lisbon
                                                                                                                                                      Number of IPOs           Proceeds US$b
     products sectors saw the highest number of IPOs.
                                                                                                                                                                                            All amounts in table are in US$
 ►   Cross-border activity of EMEIA issuers rose during 2018                                                                                                                                                                                                                       All amounts in table are in US$

     (9.6% of IPOs), moving toward the historical average of 10%.
All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover          Global IPO trends: Q4 2018 | Page 22
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Europe, Middle East, India and Africa

   Trends
       Cross-border activity 2018                                                                                                                                                                       Transaction sizes 2018
                                                                                                                                                                                                                                      Main markets                                        Junior markets
    EMEIA issuers’                                                                                                                                                          2018                                                      2018                      Change on prior year      2018                        Change on prior year
    cross-border activity
    Percentage of all EMEIA issuers                                                                                                                                                                     Median post-
                                                                                                                                                                                                        IPO market cap                $255.6m                                 2%          $11.3m                                    15%

                                                                                 Cross-border                                                                      43
       16%
                   12%
                               8%         8%
                                                     10%
                                                                                                                                                                                                        Median
                                                                                                                                                                                                        deal size                     $83.2m                                 12%          $2.9m                                     13%

                                                                                 9.6% of all EMEIA issuers* listed abroad                                             IPOs                                                             $300
                                                                                                                                                                                                        Trends                                                                             $40

                                                                                                                                                                                                                                                                                           $30
       2014       2015       2016        2017       2018                                                                                                                                                     Median post-IPO           $200

                                                                                                                                                                                                             market cap US$m                                                               $20

                                                                                                                                                                                                                                       $100

                                                                                 Outbound                                                                          21
                                                                                                                                                                                                             Median deal size                                                              $10
                                                                                                                                                                                                             US$m

             IPOs that launched in                                                                                                                                                                                                       $0
                                                                                                                                                                                                                                                2014   2015    2016   2017   2018
                                                                                                                                                                                                                                                                                            $0
                                                                                                                                                                                                                                                                                                  2014    2015    2016      2017    2018

             2018 posted first-day                                               4.7% of all EMEIA issuers* listed outside EMEIA                                      IPOs
             returns of nearly 10%                                                                                                                                                                      Sources of IPOs
             and have outperformed                                                                                                                                                                                                                Percentage

                                                                                 Inbound
                                                                                                                                                                                                        2018
             most main market                                                                                                                                                                                                                     of proceeds                  78%          80%          83%         89%           90%

                                                                                                                                                                      7
                                                                                                                                                                                                                                                21%
             indices in 2018,                                                                                                                                                                                                         7%
                                                                                                                                                                                                                                           3%
                                                                                 5.4% of cross-border IPOs globally** listed                                                                              Percentage
             solidifying investor                                                on EMEIA exchanges but came from                                                                                         of IPOs                                       8%
                                                                                                                                                                      IPOs
             confidence in the                                                   outside the region                                                                                                               71%           90%
                                                                                                                                                                                                                                                                                1%          1%
                                                                                                                                                                                                                                                                                                         2%           1%
             EMEIA IPO market.                                                                                                                                                                                                                                                 21%          19%          15%
                                                                                                                                                                                                                                                                                                                                   3%
                                                                                                                                                                                                                                                                                                                     10%           7%
                                                                                 *There were 446 IPOs by EMEIA issuers in YTD 2018. This analysis is based on the listed                                                                                                       2014         2015         2016        2017          2018
                                                                                 company domicile, regardless of the listed company exchange.
                                                                                 ** There were 130 cross-border IPOs globally in YTD 2018.                                                                                 Financial sponsor-backed  Former state-owned enterprises  Non-financial sponsor-backed

                                                                                                                                                                                                                                                                  All amounts in table are in US$. Figures may not total 100% due to rounding.

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                             Global IPO trends: Q4 2018 | Page 23
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Europe, Middle East, India and Africa

    Performance
      IPO pricing and performance 2018                                                                Equity indices 2018                                                                                                                           Volatility indices

                              First-day
                                                                Share price                           BSE                               CAC 40                             DAX 30                            Euro                                   VSTOXX®                       VDAX®                          VFTSE 100
                                                                performance
                              average return
                                                                since IPO
                                                                                                      SENSEX                            -5.6%                              -12.3%                            STOXX 50                               17.20                         18.36                          16.83
                                                                                                      +6.1%                             France                             Germany                           -9.2%                                  index level                   index level                    index level
                                                                                                      India                                                                                                  Europe                                 +27.4%                        +29.7%                         +76.3%
      Main
      markets                 +9.6%                             +9.0%                                                                                                                                                                               YTD
                                                                                                                                                                                                                                                    +16.6%
                                                                                                                                                                                                                                                                                  YTD
                                                                                                                                                                                                                                                                                  +21.0%
                                                                                                                                                                                                                                                                                                                 YTD
                                                                                                                                                                                                                                                                                                                 +43.3%
                                                                                                      FTSE 100                          JSE All Share                      MICEX                             Tadawul
                                                                                                                                                                                                                                                    Q3 2018                       Q3 2018                        Q3 2018
                                                                                                      -8.7%                             -12.2%                             +15.8%                            All Share
      Junior
      markets                 +7.6%                             -2.2%                                 UK                                South Africa                       Russian Federation                +6.4%
                                                                                                                                                                                                             Saudi Arabia
                                                                                                                                                                                                                                                    -+ indicates a increase in volatility as at 4 December 2018 compared with 29 December
                                                                                                                                                                                                                                                    2017 for year-to-date (YTD) and 28 September 2018 for end of Q3 2018. Whereas -
    + or – indicates change compared with offer price at IPO                                       + or – indicates change since 29 December 2017                                                                                                   indicates an decrease in volatility over the same time period.

Outlook
►    Looking ahead to 2019, a number of uncertainties prevail,                                                    ►    In the UK, Brexit will likely find resolution in Q1 2019. In Q1 2019,                                        ►     Across MENA, while pipelines remain robust, companies may
     including the US-China-EU trade tensions, Brexit and uncertainty with                                             we anticipate that foreign IPO candidates will dominate IPO activity                                               continue to put their IPO plans on hold, at least in Q1 2019, in
     respect to the stability of selected European country economies. At                                               as domestic companies delay their IPO plans and wait to see how                                                    response to fluctuating oil prices and geopolitical uncertainty.
     the same time, with interest rates expected to rise in the US, it’s only                                          markets react post-Brexit. In the second half of 2019, the UK IPO                                                  However, there are positive opportunities ahead for MENA IPO
     a matter of time before the European Central Bank feels the pressure                                              markets are expected to kick back into gear as domestic IPO                                                        markets: the Abu Dhabi Securities Exchange plans to roll out futures
     to follow suit. These issues will likely continue to influence IPO                                                candidates look to launch when the timing is right.                                                                trading in 2019 to boost investments; the Morgan Stanley Capital
     activity in the quarters to come. However, with strong economic                                              ►    In India, the results of a series of upcoming state elections may                                                  International (MSCI) may reclassify the Kuwait Stock Exchange as an
     fundamentals and investor confidence, EMEIA IPO markets are                                                       impact macroeconomic stability in 2019. If the results are favorable,                                              emerging market; and the Egyptian Government looks to list state-
     expected to remain a dominant force globally in 2019.                                                             we expect Indian stock markets to rally and provide momentum to                                                    owned enterprises on its stock exchange.
►    In Europe, all eyes will be on the four largest economies (France,                                                IPO activity, at least in Q1 2019. Overall, we expect IPO candidates                                         ►     Given the ongoing political and economic instability in many key
     Germany, Italy and the UK). If one falters, it could challenge capital and                                        to take a “wait and watch” approach, until the stock market                                                        African markets, we continue to anticipate that African IPO activity
     IPO markets. Meanwhile, Brexit will be an issue until the UK and EU                                               correction, low rupee exchange rate, and other domestic and                                                        will remain slow for the first half of 2019.
     Governments finalize a plan no later than Q1 2019. European IPO                                                   geopolitical uncertainties reach resolution.
     deal activity could remain sluggish until the second half of 2019.

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                              Global IPO trends: Q4 2018 | Page 24
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
Europe snapshot

   Markets                                                                                                              Activity Q4 2018                                             Trends 2018
                                                                                                  Change on                                                                         Transaction sizes
    2018
                                        Change on
                                        prior year            Q4 2018                             prior year              Sectors
                                                                                                  quarter
                                                                                                                           by highest number of IPOs                                                                                   Main markets              Change on prior year      Junior markets              Change on prior year

    228                                        16%            61                                       35%                Technology                                                   Median post-IPO market cap                      $240.2m                                16%          $28.8m                                     8%
    IPOs                                                      IPOs                                                        15 IPOs | $484m
                                                                                                                                                                                       Median deal size                                $89.0m                                 45%          $6.8m                                      11%
    $38.6b                                     17%            $10.6b                                   14%                Health care
                                                                                                                          11 IPOs | $252m
    Proceeds                                                  proceeds                                                                                                                                                                              *There were 234 IPOs by European issuers in 2018. This analysis is based on the

    10% of IPOs are                                           5% of IPOs are                                              Industrials
                                                                                                                                                                                     Cross-border IPOs: top IPO issuers                             listed company domicile, regardless of the listed company exchange.
                                                                                                                                                                                                                                                    ** There were 130 cross-border IPOs globally in 2018.
    financial sponsor-                                        financial sponsor-                                          9 IPOs | $6,704m
    backed                                                    backed
                                                                                                                                                                                     Cross-border                                     Outbound                                  Inbound
                                                                               All amounts in table are in US$            IPOs                                                       15% of all Europe
                                                                                                                                                                                     issuers* listed
                                                                                                                                                                                                                        35            7.3% of all Europe
                                                                                                                                                                                                                                      issuers* listed
                                                                                                                                                                                                                                                                  17            7.7% of cross-border IPOs globally**
                                                                                                                                                                                                                                                                                listed on European exchanges but
                                                                                                                                                                                                                                                                                                                                      10
                                                                                                                           largest by proceeds                                       abroad                             IPOs          outside Europe               IPOs         came from outside Europe                              IPOs
    Main markets                                             Junior markets
                                       Change on                                                  Change on               Knorr-Bremse AG
    Q4 2018                            prior year
                                       quarter
                                                             Q4 2018                              prior year
                                                                                                  quarter
                                                                                                                          $4.4b Industrials, Deutsche Börse

                                                                                                                                                                                     Performance 2018
                                                                                                                          Aston Martin Lagonda Global
    29                                         26%           32                                        42%                Holdings plc $1.4b Industrials,
    IPOs                                                     IPOs                                                         London (LSE)

    $10.1b                                       7%          $0.3b                                     73%
                                                                                                                          Neoen SA $807m Energy,
                                                                                                                          Euronext (Paris)
                                                                                                                                                                                      Equity indices                                          Volatility index                                IPO pricing and
                                                                                                                                                                                                                                                                                              performance
    proceeds                                                 proceeds
                                                            160                                                $6
                                                                                                                           Stock exchanges                                            CAC 40                       DAX 30                     VSTOXX®
    180                                          $70
                                                                                                                           by highest total proceeds                                  -5.6%                        -12.3%                                                                     First-day average return
    160
                                                 $60
                                                            140
                                                                                                               $5                                                                     France                       Germany                    +27.4% | 17.2 index level
    140
                                                 $50
                                                            120                                                            Deutsche Börse (Main and                                                                                           YTD                                             Main markets                +9.5%
    120                                                     100
                                                                                                               $4
                                                                                                                           Scale)
    100                                          $40         80                                                $3          $4.6b | 3 IPOs Germany                                                                                                                                             Junior markets              +10.3%
     80                                          $30         60
     60
                                                             40
                                                                                                               $2
                                                                                                                           London (Main and AIM)                                      Euro STOXX 50                FTSE 100                   VFTSE 100                                       Share price performance since IPO
                                                 $20
                                                                                                                                                                                      -9.2%                        -8.7%
                                                                                                                                                                                                                                              +76.3% | 16.8 index level                                                   +12.2%
     40
                                                 $10
                                                             20
                                                                                                               $1
                                                                                                                           $2.7b | 13 IPOs UK                                                                                                                                                 Main markets
     20                                                                                                                                                                               Europe                       UK
      0                                          $0
                                                              0                                                $0                                                                                                                             YTD
          2014 2015 2016 2017 2018
                                                                  2014    2015     2016    2017    2018                    Euronext and Alternext                                                                                                                                             Junior markets              -0.5%
                                         Number of IPOs            Proceeds US$b                                           $1.5b | 5 IPOs France, Belgium,                                                                                 + indicates a increase in volatility as at
                                                                                                                           Portugal                                                                                                        4 December 2018 compared with                    + or – indicates change compared with offer
                                                                                 All amounts in table are in US$                             All amounts in table are in US$         + or – indicates change since 29 December 2017        29 December 2017 for year-to-date (YTD).         price at IPO

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                               Global IPO trends: Q4 2018 | Page 25
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
EMEIA — UK IPO market insight
Brexit uncertainty gives IPO candidates
more time to prepare for 2019
“Despite the uncertainty that Brexit has created, London
 exchanges continue to rank among the top 10 exchanges globally
 by proceeds. Moreover, we’ve seen some significant companies
 successfully complete their IPOs, proving that IPOs remain a
 viable option. Without a firm Brexit plan, we expect a slow start
 to H1 2019. However, once we have clarity, we believe the IPO
 window will reopen rapidly, so IPO candidates should now take the
 time to prepare in order to be ready to launch and take advantage
 of pent-up investor demand.”
 Scott McCubbin
 EY UK and Ireland IPO Leader

                                                                     Global IPO trends: Q4 2018 | Page 26
EMEIA — UK IPO market insight

Highlights from the markets                                                                                   Markets                                                                                                                Activity Q4 2018
►    The Brexit story continues to play out as 2018 draws to a                                                                                                                                               Change on
                                                                                                                                                    Change on
     close. As of 7 December 2018, a Brexit plan has yet to be                                                 2018                                 prior year           Q4 2018                             prior year
                                                                                                                                                                                                             quarter
                                                                                                                                                                                                                                        Sectors                IPOs on                    IPOs on AIM
     finalized. As a result, it is difficult to predict the 2019 UK IPO                                                                                                                                                                 by highest             Main Market                largest by
     market with any certainty. As it has in previous quarters, the
     shadow of Brexit continues to create uncertainty.
                                                                                                               51                                         35%            13                                        48%                  number of IPOs         largest by                 proceeds
                                                                                                               IPOs                                                      IPOs                                                                                  proceeds
     Year-on-year, 2018 UK IPO deal volumes declined 35%, while
                                                                                                               $8.5b                                                     $2.7b
►
     proceeds fell by 43% compared with 2017. Lower deal volumes                                                                                          43%                                                      43%
     and proceeds largely reflect investor hesitation to back IPOs                                             proceeds                                                  proceeds
     in a volatile and uncertain market.                                                                                                                                                     All amounts in table are in US$
                                                                                                                                                                                                                                        Materials              Aston Martin               Manolete
►    Nevertheless, London Main Market and AIM remain a key                                                                                                                                                                                                                                Partners plc
     listing destination, ranking seventh within the top ten                                                                                                                                                                            3 IPOs                 Lagonda
     exchanges globally by proceeds during 2018.                                                               London Main Market                                        London AIM                                                     $437m                  Global                     $38m
                                                                                                                                                                                                                                                                                          Consumer products
►    Despite the slowdown in transactions because of Brexit, the Q4                                            Q4 2018                              Change on
                                                                                                                                                                         Q4 2018                             Change on                                         Holdings plc               UK
     2018 deals that have moved forward have been sizeable. The
                                                                                                                                                    Q4 2017                                                  Q4 2017
                                                                                                                                                                                                                                                               $1.4b
     Aston Martin Lagonda Global Holdings plc listing in October
     ranked as the fourth biggest IPO globally in Q4 2018, posting
                                                                                                               8                                          20%            5                                         67%
                                                                                                                                                                                                                                                               Industrials
                                                                                                                                                                                                                                                               UK
                                                                                                               IPOs                                                      IPOs
     US$1.4b in proceeds.                                                                                                                                                                                                                                                                 Kropz plc
                                                                                                                                                                                                                                        Technology             National
►    Due to the Aston Martin deal, industrials led UK IPO activity by
     proceeds in Q4 2018. By deal number, materials and technology
                                                                                                               $2.6b                                      37%            $119m                                     82%                  3 IPOs                 Atomic                     $35m
                                                                                                                                                                                                                                                                                          Materials
     each saw three IPOs, while consumer products and financials saw
                                                                                                               proceeds                                                  proceeds                                                       $235m                  Company                    South Africa
     two IPO each.                                                                                                                                                                                                                                             Kazatomprom
►    Cross-border activity in the UK market in Q4 2018 included                                                 45                                               $25    80                                                $8
                                                                                                                                                                                                                                                               JSC
     companies from Kazakhstan, Cuba and South Africa with one IPO                                              40                                                      70                                                                                     $401m
     each. In 2018 as a whole, UK exchanges hosted 14 inbound deals                                             35                                               $20
                                                                                                                                                                        60                                                $6                                   Materials
     with proceeds totalling US$3.1b, accounting for 27% of UK IPOs                                             30
                                                                                                                                                                        50
                                                                                                                                                                                                                                                               Kazakhstan
                                                                                                                                                                 $15
     and 37% by total proceeds.                                                                                 25
                                                                                                                                                                                                                                        Consumer                                          Renalytix AI
                                                                                                                20
                                                                                                                                                                        40                                                $4
                                                                                                                                                                                                                                                               Global
     Although 2018 deal volumes and proceeds saw a decline from
                                                                                                                                                                 $10    30
                                                                                                                                                                                                                                        products                                          plc
►                                                                                                               15
                                                                                                                                                                                                                                                               Sustainability
     2017 levels, the UK IPO pipeline remains robust. A pause in                                                                                                        20                                                $2
                                                                                                                                                                                                                                        2 IPOs                                            $32m
                                                                                                                                                                                                                                                               Trust plc
                                                                                                                10                                               $5
     the UK IPO market is giving IPO candidates additional time to                                               5                                                      10
                                                                                                                                                                                                                                                                                          Health care
     prepare so that they are well-positioned to take advantage of the                                           0                                               $0       0                                               $0            $288m                  $262m                      UK
                                                                                                                     2014    2015    2016    2017    2018                     2014    2015     2016    2017     2018                                           Financials
     reopening of the UK IPO window later in 2019.
                                                                                                                                                                                                                                                               UK
                                                                                                                                                      Number of IPOs           Proceeds US$b

                                                                                                                                                                                             All amounts in table are in US$                                                              All amounts in table are in US$

All values are US$ unless otherwise noted. | Q4 2018 and Q4 18 refer to the fourth quarter of 2018 and cover priced IPOs from 1 October to 5 December 2018 plus expected IPOs by end of December. YTD 2018 and 2018 refer to the full year of 2018 and cover                 Global IPO trends: Q4 2018 | Page 27
priced IPOs from 1 January to 5 December 2018 plus expected IPOs by end of December.
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