The Chinese technology industry maintained its leading position globally in terms of the volume of IPOs in Q1 2015, with eight listings earning $1.1 billion in proceeds, according to PwC’s Global Technology IPO Review Q1 2015.
However, the number of Chinese tech IPOs declined by 27% and total proceeds fell by 26%.
The number of Chinese tech IPOs in Q1 2015 was lower compared with Q1 2014, which recorded 11 IPOs with a total of $987 million raised. However, average proceeds increased from $89.7 million per IPO in Q1 2014 to $131.9 million in Q1 2015.
In Q1 2015, all the Chinese tech companies chose to list on Chinese exchanges. The Chinese regulator’s shift from an approval-based to a registration-based system for IPO listings is believed to have simplified the IPO process and enhanced the attractiveness of going public in China.
“While there are a number of Chinese technology companies in the US IPO pipeline, we anticipate significant growth in technology listings on domestic exchanges as a result of both the new registration based system and increase in valuations," said Jianbin Gao, Technology Industry Leader, PwC China.