IPO Watch Europe Q2 2011

 

 

Companies in the mining and oil and gas sectors have dominated the initial public offerings (IPO) market in Europe.

 

Hostile market conditions have dented the price and number of flotations, but there was still a 48% increase in the value of IPOs in Europe in the second quarter this year compared to the same quarter of 2010.

 

Investor demand for resources-driven growth has seen the IPOs of Glencore and Vallares prop up the Q2 figures. The two London-based deals accounted for over €8bn of the €13.4bn raised. London remains a key destination for primary IPO listings but is experiencing fierce competition especially from Hong Kong.

 

European exchanges have continued to endure the fallout from concerns over Greece and elsewhere, with more reports of delays and postponements in the IPO pipeline. These concerns have fed into IPO pricing discussions, contributing to a reported fraying in relationships between companies’ advisers and investors.