Technology IPOs in Europe are lagging behind other markets though the continent is ranked second in all funds raised for IPOs across all other sectors in Q1 2014, says PwC newest study on Global Technology IPO Review.
Rising investor confidence coupled with Chinese stock exchanges led to a very strong quarter for technology IPOs. And year over the total number of technology IPOs saw a 160% growth while its value increased fourfold to $6.8bn (€4.9bn), the study says.
In terms of countries the top performers were China, Japan, Ireland and the US.
In the first quarter of 2014 twelve IPOs were completed in the US against eight completed in Q4 2013. Overall US IPO proceeds went up by 71% y/y to $1.6bn (€1.15bn) with US being the most active country in Tech IPO in Q1 2014. At the same time Europe saw only one tech IPO completion at $500m (€358.9m). According to Raman Chitkara, Technology Industry Leader at PwC, Europe entered into a new aberration pattern after it experienced a very strong Q4 2013.
He says: "Momentum from Q4 2013 led to a very strong start for technology IPOs in 2014. Investors continue to demonstrate a strong appetite for high-growth companies with disruptive technologies. This should lead to continuation of a positive environment for technology IPOs in 2014."
Breakdown by subsectors shows that internet software and services accounted for 42% of deals in Q1 however it was ranked second in terms of the overall value which stood by $1.8bn (€1.3bn). It was overtaken by computer storage and peripherals subsector which raised around $3.8bn (€2.7bn).