IPO Watch Q3 2015

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Europe's IPO pipeline looks promising for the rest of the year and may still match proceeds raised in 2014 despite the slow start back after the summer as we saw increased volatility and falling equity indices hit the equity markets.

53 European IPOs raised €4.6bn in Q3, 30% less than the proceeds raised in the same period last year (when 76 IPOs raised €6.6bn). The majority of the IPOs priced in the first few weeks of the quarter and activity is yet to pick up after the summer lull. The only IPO raising more than €100m after the summer is the €132m (£96m) IPO of On The Beach Group in London.

European IPO activity (Q1 and full year) since 2007*

IPO Watch Europe

Quarterly European IPO activity since 2012

IPO Watch Europe

Top three stock exchanges in Europe, Q3 2015

IPO Watch Europe
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Key highlights:

  • Q3 2015 activity was subdued – with 53 IPOs (down 30% from Q3 2014) raising €4.6bn (down nearly a third on Q3 2014). 94% of the quarters proceeds was raised in July before increased volatility impacted market conditions
  • Year-to-date activity remains strong with 258 IPOs raising €35.7bn, only 11% below the blockbuster levels of 2014 which saw €40.3bn being raised YTD Q3 2014
  • PwC predicts a promising outlook for the remainder of 2015 with increased activity occurring on continental European exchanges
  • We expect the return of the €1bn+ IPOs in Q4 2015 and 2016 with a number of large IPOs in the pipeline including Worldpay, Poste Italiane and ABN Amro
  • If the markets stabilise and in light of the burgeoning pipeline, 2015 may match the €50bn proceeds raised in 2014

Mark Hughes, Capital Markets Partner, PwC said:

“We await the final quarter of 2015 with interest. On one hand there is a promising European IPO pipeline made up of companies from varying sectors seeking to IPO across Europe's exchanges whilst on the other hand the markets remain challenging with investors wary of falling equity indices and continued concern over China's growth prospects. The question for companies is whether they are better keeping their powder dry and waiting for more stable markets. However, based on recent announcements it seems companies and bankers remain confident that the markets will be open in Q4.”

Top 10 IPOs
Ten largest IPOs in Q3 2015 €m (excl. greenshoe) €m (incl. greenshoe) Sector Market Country of origin PE backed
Deutsche Pfandbriefbank 1,086 1,157 Financials Deutsche Börse Germany No
Euskaltel 764 840 Telecommunications BME Spain Yes
Flow Traders 521 599 Financials Euronext Netherlands Yes
ADO Properties 415 415 Financials Deutsche Börse Germany No
UK Mortgages 350 350 Financials London United Kingdom No
Space2 300 300 Financials Borsa Italiana Italy No
Cassiopea 157 169 Health Care SIX Swiss Italy No
Banca Sistema 146 162 Financials Borsa Italiana Italy Yes
On The Beach Group 132 132 Consumer Services London United Kingdom Yes
Menhaden Capital 112 112 Financials London United Kingdom Yes
Total 3,983 4,235        

Sources: IPO Watch Europe Survey Q3 2015