IPO activity marches on
Is this the return of the UK domestic IPO?

IPO activity rapidly materialised after the Christmas break, almost taking the markets by surprise as companies moved quickly to take advantage of the uptick in the FTSE index and low volatility.

Quarterly European IPO activity by value
Source: PwC Q1 2013 IPO Watch Europe Survey

Highlights from the quarter

  • IPO proceeds rose by 37% in Q1 2013 compared with the first quarter of 2012 - this increase was driven by LEG Immobilien raising €1.2bn on the Deutsche Börse in the largest IPO of the year so far and a number of floats of domestic and PE-backed companies in London.
  • Increase in PE backed IPOs coming to market - Countrywide and Esure were both PE backed deals in London and raised more than €1bn, they represented two of the top 5 European IPOs of the quarter. These were the first UK PE-backed IPOs on London’s Main Market since AZ Electronic Materials in October 2010 and may pave the way for IPOs of other PE backed companies as the year unfolds
  • Strong aftermarket performance - the offer price of the majority of the major London IPOs was within their published price ranges. Aftermarket performance from the top IPOs has also been positive, with the majority of the top IPOs either improving on or holding the offer price after IPO.