IPO Watch Europe 2016 Annual Review

Our latest report reviews IPO activity during 2016. The year ended on a subdued note with annual proceeds down by almost a half.

There is continued uncertainty going into 2017, but the market is still open with liquidity available for the right companies and at the right price.

European IPO volumes and values at their lowest level since 2009

​The value of ​European IPO​s ​in 2016 decreased 51% ​(​€29.5bn) ​compared to 2015, and average deal size decreased by 26% - only five raised over ​​€1bn. 

Most activity was driven by the continental exchanges - Germany hosted the largest IPO of the year​, innogy SE, the renewable energy spin off of RWE - accounting for 16% of t​he ​total ​value of ​European IPO​s​ for the year.

Most European exchanges recorded a decrease on 2015, with Nasdaq Nordic being the notable exception, increasing by 33%.

Decrease in IPO proceeds across Europe
Share
UK activity most impacted
Share

​​The value of London IPO​s​ decreased by 59% ​(​​€​9.7bn) ​and volumes by 27%​ (​67)​, representing its worst year since 2009

The London IPO market in 2016 faced a series of challenges, from general unfavourable market conditions to the result of the EU referendum​. This resulted in​ a number of IPO cancellations and postponements, as well as some deals pricing at the bottom of their range.

However, AIM seemed to be sheltered from this and continued to perform well, with 39 IPOs raising over €1.3bn.

Continued uncertainty across Europe into 2017

Despite of the global political volatility impacting markets, the European IPO pipeline looks healthy, as investors seek out investment opportunities with compelling and well-supported equity stories.

Pipeline picking up with encouraging start to Q4
Share

"As a result of the current economic and political outlook, investors will continue to be more selective, backing IPO candidates with an attractive valuation, a differentiated product and an equity story which is underpinned by strong performance.”

Mark Hughes, Capital Markets Leader

Contact us

Mark Hughes
UK Capital Markets Leader
Tel: +44 (0)20 7804 3824
Email

Lucy Tarleton
Director
Tel: +44 (0)20 7212 3856
Email

Follow us