IPO Watch Q3 2008

In this short video, Tom Troubridge, head of the PwC Capital Markets group outlines IPO performance in the 3rd quarter, and offers his opinion on what companies looking to IPO in the near future should consider.

European IPOs in freefall reflecting worldwide loss of confidence in the capital markets

October 2008

European IPO activity went into freefall in the July to September quarter, buffeted by the worldwide loss of confidence in the capital markets, according to the findings of the latest PricewaterhouseCoopers IPO Watch Europe survey. The survey, which tracks the volume and value of Initial Public Offerings on Europe’s main stock exchanges, showed that in the third quarter, the total offering value of IPOs on the European markets was €1,635m, massively down on the €12,624m raised in the third quarter of 2007. The fall in the total offering value was due to the decline in the number of IPOs and the average money raised due to  fewer large transactions. The biggest IPO of the quarter, raising €444m, was that of Commercial Bank of Qatar compared with the listing of Tognum AG, raising €1,800m, which was the largest IPO in same quarter last year.

In volume terms there were just 69 IPOs, a major decline from the 183 recorded in the same three months of 2007. The average amount of new money raised also dropped to €33m in the third quarter of 2008 from €80m in the same quarter of 2007; also well down from €82m in the second quarter of 2008. The volume of IPOs also fell compared with the disappointing second quarter of 2008 which saw 133 listings.