Even as the 2016 IPO market lags the prior year by deal count (34 IPOs; -53%), proceeds ($5.5B raised; -58%) and filings (49 submissions; -54%), US IPO activity of China-based companies has kept pace with 2015. Including Thursday's China Online Education (51Talk; COE), the three Chinese companies listing in the US have raised more proceeds ($204 million) than the entire class of 2015. A look at all China ADR listings since 2012 shows general safety on the first day: Only 3 of the 28 IPOs (11%) to raise more than $40 million had a negative first-day return, compared to 25% for their non-Chinese counterparts. However, first-day pops have trended down over the past two years: The five deals since 2015 have an average first-day of +5% (compared to +13% for non-China). Ahead of 51Talk's $46 million offering, it is also worth noting that the four Chinese companies that raised less than $70 million currently trade below their offer price.
| US IPOs from Chinese Companies* | |||||
| Year | # IPOs | Median Deal Size |
# Down on First Day |
Avg. First-Day Return |
Avg. Total Return |
| 2016 | 2 | $130 |
0 | +9% | +13% |
| 2015 |
3 | $75 |
1 | +2% | +8% |
| 2014 | 14 | $145 |
1 | +13% | -5% |
| 2013 | 7 | $79 |
0 | +47% | +53% |
| 2012 | 2 | $77 |
1 | -4% | +1,093% |
