IPO Watch Europe - Review for the year 2009

 

In this short video, Richard Weaver and Mark Hughes, partners in the PwC Capital Markets Group discuss recent IPO performance and offer their views on when the IPO markets may show signs of recovery.

 

 

PricewaterhouseCoopers IPO Watch Europe - Review of the year 2009  is compiled by the Capital Markets Group and collates and builds on the findings of our quarterly surveys tracking the volume and value of IPOs on Europe's main stock exchanges.

 

IPO activity across the European exchanges has continued to suffer in 2009 largely due to the worldwide loss of investor confidence and global economic crisis. As a result the IPO markets experienced further significant declines in both value and volume compared to 2008 which was already a dismal year. The fourth quarter of 2009 did show some early signs of recovery, with a distinct upturn in IPO volume and value compared to the first three quarters.

 

The European exchanges continued to be outperformed by both those in the US and in Greater China for the second consecutive year, illustrating the fact that investor confidence in the European markets is lagging behind those two regions.  NYSE Euronext became the most successful European market in 2009 with a market share by offering value of 27%, despite a fall in both the volume and value of IPO activity.

 

The current economic background across the European markets remains fragile making it difficult to firmly predict when the IPO market will fully reopen for business. Our prediction of the IPO market reopening in the second quarter of 2010 may have to be put back six months unless confidence returns and market conditions improve shortly. In any event, it is likely to remain a buyer's market for some time as investors look carefully for good quality companies which are sensibly priced.

 

If you would like to speak to one of our listings experts please get in touch with one of the Capital Markets contacts listed at the back of the publication.