Renewed vigour in the European IPO market has meant cash raised by companies going public in the first quarter 2014 has exceeded Q1 values for the previous four years combined, generating €10.6bn.
This follows a busy final quarter of 2013 which saw over 100 companies successfully float and accounted for more than half the total proceeds raised for the whole year.
Mark Hughes, capital markets partner at PwC, said:
“The high levels of activity in recent months across Europe had not been observed since 2007. Interestingly, we are also seeing more companies with a tech component going to market and these are the ones getting the higher multiples from investors. This is especially noticeable for retail companies with an online growth plan.”
Richard Weaver, capital markets partner at PwC added:
“In the last two quarters we’ve seen larger deals, high subscription levels and good aftermarket performance and these are definitely signs of a wide-open IPO window. It doesn’t however relieve IPO candidates from presenting a clear and well substantiated equity story if they want to be must-own deals in an increasingly busy market.”
|Top five IPOs|
|Five largest IPOs||Offering value €m||Sector||Market||Country of origin||PE backed|
|Kennedy Wilson Europe Real estate plc||1,017||Finance||London||UK||No|
|Lenta Ltd||696||Consumer services||London||Russia||Yes|
|Gaztransport&Technigaz SA - GTT||621||Industrials||Euronext||France||Yes|
Sources: IPO Watch Europe 2014