IPO Watch Europe Q2 2016

Our latest IPO Watch predicts European IPO proceeds are unlikely to reach €25bn by the end of 2016 following the UK’s vote to leave the EU, however, an uptick in activity towards the end of the year is expected if conditions improve.

  • European IPO proceeds dropped 26% compared to Q2 last year, affected by the uncertainty surrounding the EU referendum.
  • London was especially impacted, down 75% to €1.2bn (£0.9bn) and representing only 11% of European activity.
  • The rest of Europe fared better with IPO proceeds only down 6% to €9.7bn.
  • Following the outcome of the EU referendum in the UK, PwC expects IPO candidates to return gradually to the market towards the end of the year and early 2017, provided investor confidence improves and market uncertainties subsides.

"Improved political stability and greater clarity over the UK’s progress on negotiations with the EU will be key to IPO activity picking up again post the traditional quiet summer period. Provided this is the case, the successful completion of the first IPOs coming to market post-summer will set the tone for the remainder of the year.”

Mark Hughes, Capital Markets leader, PwC