Global IPO Market INTRODUCTION

Global Stock Exchanges (in terms of market capitalization in 2012) Source: World Federation of Exchanges (as at December 2012) Hong Kong Exchanges and Clearing Limited London (4th: USD 3,396.5bn ) London (4th: USD 3,396.5bn ) New York (1st: USD 14,085.9bn ) New York (1st: USD 14,085.9bn ) NASDAQ (2nd: USD 4,582.4bn) NASDAQ (2nd: USD 4,582.4bn) Shanghai (7th: USD 2,547.2bn ) Shanghai (7th: USD 2,547.2bn ) Singapore (21st: USD 765.1bn ) Singapore (21st: USD 765.1bn ) Tokyo (3rd: USD 3,478.3bn ) Tokyo (3rd: USD 3,478.3bn ) Shenzhen (16th: USD 1,150.2bn ) Shenzhen (16th: USD 1,150.2bn ) Hong Kong (6th: USD2,831.9bn) Hong Kong (6th: USD2,831.9bn)

Equity Markets 2012 Source: World Federation of Exchanges Performance indicatorValue/unit % difference (comparing to 2011) Market capitalisationUSD 55 trillion+ 15.1% Number of listings46, % Value of share tradingUSD 49 trillion- 22.5% Number of Electronic Order Book (EOB) trades 9780 million- 14.3%

Average Value of Trades Source: World Federation of Exchanges

Global Funds Raised in 2012 Source: Hong Kong Exchanges and Clearing Limited (US$ million)

Trends in the Global IPO Market  Global IPO market is expected to pick up in 2013, due to: Strengthening US economy Anticipated economic recovery in Europe and Asia in the second half of 2013 Reduced stock market volatility Assertive actions from central banks Brighter earning outlook  Rising investors’ confidence Four in every five institutional investors interviewed by Ernst & Yong in November and December 2012 invested in pre-IPO or IPO stocks in the past 12 months (In contrast, only one in five during the past 2 or 3 years) Source: Ernst & Young, “Right team, right story, right price” Inside Investor Relations

Trends in the Global IPO Market Source: Ernst & Young, “Right team, right story, right price” Top 5 preferred investment destinations 1.United States 2.Mainland China and Hong Kong 3.Brazil 4.Other Asia-Pacific countries 5.United Kingdom Top 5 preferred investment sectors% of investors* Financial services51% Consumer retail35% Consumer products27% Oil and gas27% Technology21% * Featured most often in investors’ top three in the survey conducted by Ernst & Young

Benefits of an IPO Benefits a successful IPO can bring to a company include:  Source of long-term capital  Creation of liquidity  Raised company profile and positive public image  Attraction of foreign partnerships  Enhanced employee morale and loyalty  Improved efficiency of the business  A potential exit strategy for the current owners

Factors for a successful IPO Factors affecting IPO success include:  Attractive pricing  Compelling equity story  Confidence in management  Right timing  Readiness to provide transparency and good corporate governance  Size of transaction  Reputation of the banking syndicate  Listing venue selection Source: Ernst & Young, “Right team, right story, right price”

Procedures to IPO  To go public, companies are required to fulfill certain listing requirements set by the stock exchange of the jurisdiction in which the company wishes to be listed  To know more about listing procedure and requirements in various jurisdictions, please refer to the IPO guides prepared by Legalink