Continued vigour in the European IPO market has seen 145 IPOs raise €22.3bn in Europe in Q2 2014, almost twice the amount raised in Q1 2014 and more than four times the proceeds year on year.
The surge in floats seen in the second half of 2013 has now approached record levels as Q2 2014 posted the best second quarter performance since the financial crisis hit the capital markets.
Mark Hughes, capital markets partner at PwC, said:
“It’s been over a year since the markets re-opened to IPOs, the longest run in recent years. We’re now confident that we’ve entered a new era for companies wanting to go public and so as long as deals continue to perform, we see this positive trend set fair to continue."
“Given the continued strength of the IPO pipeline, the prospects for Q3 remain strong and are likely to continue rebound towards pre-crisis levels.”
Vivienne Machlachlan, capital markets director at PwC, said:
“There’s definitely a feeling of markets getting tougher, with investors rigorously testing equity stories and trickier pricing discussions. Given the number of companies looking to go public at the moment, we’re bound to see some deals having to work harder to attract interest. It will take prime candidates to convince canny investors that they are “must-have deals”
|Top five IPOs|
|Five largest IPOs||Offering value €m||Sector||Market||Country of origin||PE backed|
|B&M European Value Retail||1,336||Consumer Services||London||UK||Yes|
Sources: IPO Watch Europe 2014