Chinese companies accounted for 93 percent of the USD24.8 billion raised in tech IPOs in the third quarter, according to PwC’s latest research. It also had more than half of the world’s 18 tech IPOs completed during the third quarter, specifically 10 of them were Chinese companies. A record amount was raised by technology companies exceeding the USD17.8 billion raised in the second quarter of 2012 when Facebook completed its IPO. Driving the overall increase was a continued economic recovery and underlying optimism prevailing around the world. The final quarter of the year has rising market volatility, but investor “faith” in the future of the technology sector remains strong, even “exceeding historical norms”, according to the report.
It was Internet Software & Services and Software companies that dominated IPO volume. The Semiconductor subsector had four IPOs, again all in China, which was an increase compared to one in the same quarter of 2013. Proceeds increased to USD533 million from USD71 million the previous year.