PART 4: CAPITAL STRUCTURE AND PAYOUT POLICY
welcoming IPO market has been a key building block of American success in high-technology industries.
In Australia, the IPO market has been particularly important in promoting the growth of sectors like
biotechnology, healthcare and information technology, as well as providing funding options for the
resources and mining sector.
For at least the past 20 years, IPO markets have been growing around the world; but as can be seen
from Figure 12.5, they have encountered significant volatility since 2007, a phenomenon closely linkedFIGURE 12.5 GLOBAL IPO ACTIVITYGlobal IPO and M&A by deal numbersGlobal IPO and M&A by deal value0
100
200
300
400
500
600
700
0
2,000
1Q 20072Q 20073Q 20074Q 20071Q 20082Q 20083Q 20084Q 20081Q 20092Q 20093Q 20094Q 20091Q 20102Q 20103Q 20104Q 20101Q 20112Q 20113Q 20114Q 20111Q 2012
2Q 12
3Q 20124Q 20121Q 20132Q 20133Q 20134Q 20131Q 20142Q 20143Q 20144Q 20141Q 20152Q 2015*
1Q 20072Q 20073Q 20074Q 20071Q 20082Q 20083Q 20084Q 20081Q 20092Q 20093Q 20094Q 20091Q 20102Q 20103Q 20104Q 20101Q 20112Q 20113Q 20114Q 20111Q 20122Q 20123Q 20124Q 20121Q 20132Q 20133Q 20134Q 20131Q 20142Q 20143Q 20144Q 20141Q 20152Q 2015*
4,000
6,000
8,000
10,000
12,000
Number of M&A deals Number of IPO deals0
20
40
60
80
100
120
140
0
200
400
600
800
1,000
1,200
1,400
IPO deal value (US$b)
M&A deal value (US$b)M&A deals IPO dealsM&A deals IPO dealsNote: 2Q 2015 M&A activity in these graphs is based on announced M&A deals from April and May 2015, and 2Q 2015 IPO activity is based on priced IPOs
from April and May 2015.
Source: EY Global IPO Trends 2015 Q2, Ernst & Young, 2015. Used with permission.