IPO Masterclass Tuesday, 13 April 2021 Deloitte IPO Masterclass Agenda Welcome London Stock J.P. Morgan Deloitte DWF Q&A Exchange and closing Simon Olsen Marcus Stuttard Barry Meyers Az Ajam-Hassani Chris Stefani Simon Olsen © 2021 Deloitte LLP. All rights reserved. Deloitte IPO MasterClass – 13 April 2021 2 Deloitte IPO Masterclass You are in good company Attended Listed Attended Listed 2013 2015 2015 2015 2013 2014 2015 2015 2013 2015 2015 2015 2013 2015 2016 2018 2013 2014 2016 2018 2014 2016 2016 2018 2014 2015 2016 2019 2014 2015 2017 2018 2014 2015 2017 2018 2014 2014 2018 2021 2014 2015 2019 2021 ITF 2015 2016 © 2021 Deloitte LLP. All rights reserved. Deloitte IPO MasterClass – 13 April 2021 3 A pick up in global Equity Capital Markets activity Global IPO activity has been above the three-year average for the past three quarters Quarterly issuance value and volume – globally since 2017 200 1000 180 900 160 800 140 700 120 600 100 500 80 400 Deal value (£bn) value Deal Number of deals of Number 60 300 40 200 20 100 0 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Value Volume Follow-On IPO Follow-on IPO Source: Dealogic. All IPOs and Follow-Ons with a deal value greater than or equal to £10m % increase Global stockmarket indices performance since January 2020 from trough 130 83.1% 79.5% • There has been a resurgence in global ECM activity 120 following a period of slight decline from early 2017. 110 • As a market sell off caused global stock market indices to 56.2% crash in March 2020, corporates were forced to tap their 33.7% 100 investors for cash through secondary raises. • Since March, stock markets have gradually recovered, albeit 90 39.0% at different speeds, with an increase in the speed of Price (indexed to 100) (indexed Price 80 recovery evident on the back of positive vaccine trial results and subsequent immunisation programmes. 70 • As investors gain confidence in the market’s recovery, IPOs have returned in force. Global IPO deal value exceeded 60 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Follow-On deal value in Q1 2021. FTSE 100 S&P 500 STOXX Europe 600 Hang Seng Index Japan Nikkei 225 Source: FactSet, as at 9 April 2021 © 2021 Deloitte LLP. All rights reserved. Deloitte IPO MasterClass – 13 April 2021 4 The UK IPO market has returned since Q3 2020 No UK IPOs priced in Q2 2020, as corporates focussed on secondary raises Quarterly issuance value and volume – UK since 2017 20 120 Spike in activity driven by 18 COVID-19 related capital raises and relaxation of regulations 100 16 14 80 12 10 60 8 Deal value (£bn) value Deal 40 deals of Number 6 4 20 2 0 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Value Volume Follow-On IPO Follow-On IPO Source: Dealogic. All IPOs and Follow-Ons with a deal value greater than or equal to £10m • The UK IPO window was closed from late February 2020 until late summer 2020, with The Hut Group IPO effectively UK ECM deal value since 2020 - key sectors UK ECM number of deals since 2020 - key sectors reopening the market. • Since then, IPO value and volume has been climbing quarter by 19% quarter. 25% • Q1 2021 was a bumper quarter with several high profile 10% 4% technology IPOs pricing. 57% 61% 10% Priced since Sep-20 14% Tech Healthcare Finance Other Tech Healthcare Finance Other Source: Dealogic. All IPOs and Follow-Ons with a deal value greater than or equal to £10m Live Announced Pipeline © 2021 Deloitte LLP. All rights reserved. Deloitte IPO MasterClass – 13 April 2021 5 IPO Hot Topics Key themes in the UK IPO and capital markets Lord Hill proposed reforms for London listings SPACs Dual class share structures © 2021 Deloitte LLP. All rights reserved. Deloitte IPO MasterClass – 13 April 2021 6 What this session covers 1 Why should I list in London? 2 Considering a dual listing 3 How does the City work? 4 What is the IPO process? 5 Life as a UK public company © 2021 Deloitte LLP. All rights reserved. Deloitte IPO MasterClass – 13 April 2021 7 Ask questions at any time during the webinar © 2021 Deloitte LLP. All rights reserved. Deloitte IPO MasterClass – 13 April 2021 8 Deloitte IPO Masterclass Agenda Welcome London Stock J.P. Morgan Deloitte DWF Q&A Exchange and closing Simon Olsen Marcus Stuttard Barry Meyers Az Ajam-Hassani Chris Stefani Simon Olsen © 2021 Deloitte LLP. All rights reserved. Deloitte IPO MasterClass – 13 April 2021 9 London Stock Exchange Q1 Equity Market Update April 2021 Deloitte IPO MasterClass – 13 April 2021 Markets that Support Growth Our choice of equity markets The Group supports businesses at every stage of growth, shining a spotlight on the companies of tomorrow. ➢ Unearthing the most inspiring companies across the globe ➢ Routes to growth Private Equity £1bn Venture Capital £150m £1m £500k Seed Capital £100k Business Angels Funding requirement Funding Friends & Family £50k Concept & seed stage Start - Up Early Stage Expansion Consolidation & Diversification of investors, M&A further capital raising and International Expansion Strategic consideration 11 Equity Market Performance Globally Markets exhibit steady growth in 2021 to date Major indices price return YTD Price performance (%) YTD 5Y 1Y 115 113 FTSE 100 3.9 8.7 18.4 111 109 FTSE 250 5.0 27.1 42.5 107 FTSE All-Share 4.3 12.8 23.3 105 103 FTSE AIM All-Share 3.5 68.5 75.6 101 99 STOXX 600 7.7 27.3 34.2 97 95 S&P 500 5.8 92.9 53.7 1-Jan 15-Jan 29-Jan 12-Feb 26-Feb 12-Mar 26-Mar FTSE 100 FTSE 250 FTSE All-Share Hang Seng 4.2 36.6 20.2 FTSE AIM All-Share STOXX 600 S&P 500 Hang Seng SSE Composite SSE Composite -0.9 14.8 25.2 UK’s 5 Best Performing Sectors, Q1-2021 UK’s 5 Worst Performing Sectors, Q1-2021 Medical Investment Real Estate +26.2% Equipment & Banking & Investment & +22.2% Personal Goods Leisure Goods Services Brokerage Services Services +15.1% +13.9% +11.9% -2.7% -2.1% -5.1% -10.2% Industrial Industrial Metals & Banks Life Insurance Travel & Leisure -13.7% Transport Mining Source: Refintiv, April 2021 12 Europe’s Most Active Equity Market £16.3bn has been raised in London through IPOs & FOs in Q1 2021 London was the most active equity market in Europe in Q1 2021, with: ⎯ 2.8x more transactions (185 IPOs & FOs) than the next most active exchange, Oslo (66 IPOs & FOs) ⎯ 1.7x more in IPO and FO proceeds (£16.3bn) than the next exchange, Frankfurt (£9.8bn) Top 10 European Exchanges by IPO & FO Capital Raised in Q1 2021 Top 5 deals in Q1 2021 on London Deal Capital Top Global Exchanges by IPO & FO Capital Raised 18 Stock Exchange Type raised (£m) 180 120 104 16 Deliveroo IPO 1,500 87 160 80 14 Dr Martens IPO 1,489 140 12 Fix Price Group IPO 1,248 40 25 120 16 13 12 No. of Deals London Stock Exchange Group FO 751 Capital Total (£bn) Raised 10 0 100 Nasdaq NYSE HKSE LSE Shenzhen Shanghai Moonpig Group IPO 540 8 80 6 60 Capital Capital Raised (£bn) 4 40 2 20 0 0 London Frankfurt Copenhagen Euronext Stockholm Oslo Lisbon Moscow Madrid Euronext Paris Amsterdam IPO Capital Raised (£bn) FO Capital Raised (£bn) No. of IPOs No. of FOs Source: Dealogic, April 2021 13 All calculations are based on a deal pricing date Largest Q1 for IPO Proceeds Since 2006 £7.2bn raised in Q1 2021, highest since 2006 Largest 15 IPOs in Q1 2021 Capital raised Market cap at IPO Company Market 25 £7.2bn (£m) (£m) Deliveroo 1,500 7,055 No. of IPOs in London in IPO proceeds in Q1 2021, Q1 2021 (16 on Main highest since 2006 Dr Martens 1,489 3,700 Market, 9 on AIM) Fix Price Group 1,248 5,946 Q1 2021 IPO Proceeds by sector Moonpig Group 540 1,197 Trustpilot Group 473 1,084 Main Telecommunications Market Cordiant Digital Infrastructure 370 370 4% Other 2% Financial Services Digital 9 Infrastructure 300 300 12% Auction Technology Group 300 600 VH Global Sustainable Energy Technology 243 243 44% Opportunities Foresight Group Holdings 227 455 Retail tinyBuild 154 341 17% ActiveOps 76 120 Supreme AIM 68 156 Consumer Products In The Style Group 60 105 and Services 21% Virgin Wines UK 48 110 Source: London Stock Exchange, Dealogic, April 2021 14 IPO Aftermarket Performance 71% of Main Market IPOs have traded above offer price Aftermarket Performance, London IPOs Q1 2021 Relative (%) performance of FTSE ICB Industries, Q1 2021 Telecomms 10.5 Main Market 71% 7% 21% Energy 9.8 Basic Materials 8.9 Cons. Discretionary 6.4 Financials 5.2 FTSE All-Share 4.3 Industrials 4.1 AIM 89% 11% Technology 3.7 Utilities 0.7 Cons. Staples 0.2 -2.4 0% 25% 50% 75% 100% Healthcare Trading Up Trading Flat Trading Down -10 0 10 20 Absolute Relative to FTSE All-Share London Best Performing IPOs, Q1 2021* Small caps (sub £100m) Mid/Large caps (above £100m) Company MGC Pharmaceuticals Cellular Goods Company Auction Technology Group tinyBuild Market Main Market - Standard Main Market - Standard Market Main Market - Premium AIM Market cap at IPO £32m £25m Market cap at IPO 600m 341m Current market cap £78m £49m Current market cap 820m 459m % price change 141% 95% % price change 37% 35% Source: London Stock Exchange, Refintiv, Dealogic, April 2021 15 *Note: IPOs with a market capitalisation of below £20m excluded from best performing IPOs Sector Focus: Tech & Consumer Internet Strong momentum with 10 IPOs in Q1 2021 ‒ Tech and Consumer Internet IPOs have raised £3.2bn this year via 10 IPOs – the fastest start to the year over the last decade ‒ This follows recent momentum seen in Q3-Q4 2020, with £3.1bn raised via 8 IPOs 2020 Q1 2021 IPO Date 02-Sep-20 16-Sep-20 02-Oct-20