Private equity-backed IPO’s surge 77% to US$14b in Asia

• As indicated by record high PE-related deal volumes, a large portion of private equity/venture capital firms are looking to exit from their investment portfolios through the equity market in 2011. Global Private Equity/Venture Capital backed IPOs have reached an all time high of S$43.7 billion from 171 deals, a significant increase of 84% from the comparable period last year that raised only US$24 billion through 135 deals.

• Specific to the Asia region, the number of IPOs with PE/VC involvement has raised US$14 billion through 89 deals so far this year, up 77% from the same period in 2010; maintaining the highest period of such activity on record. The most active exchanges for PE exits in Asia are Shanghai with US$3.7 billion, Shenzhen ChiNext with US$3.7 billion, and Shenzhen SME with US$3 billion; together accounting for 74% of the region’s PE exits. Hong Kong follows in fourth place with US$2.1 billion from 6 deals.

• The most active sector for Asia’s PE/VC-backed IPOs was the Consumer Staples industry, which recorded 8 IPOs raising US$2.9 billion. Industrials followed closely with 18 IPOs raising US$2.8 billion, an allocation of 21% market share.

•With a shorter timetable from investment to exit and strong evidence of increased valuations, Chinese companies top the deal flow lists as the nation with the most IPO exits---80 in total--- this year, with proceeds of US$12.8 billion, 90% of the regional total, and 29% of the global volume.