European IPOs raised €3.9bn in Q3 2018, down by 53% from Q3 2017 when €8.3bn was raised, according to PwC’s latest IPO Watch Europe. A lack of mega-IPOs contributed to the low values raised in Q3, with SIG Combibloc Group on the SIX Swiss exchange the only listing larger than €1bn at €1.7bn. This was the second largest IPO of 2018, behind Siemens Healthineers AG in Q1 2018 which raised €3.7bn.
Sofia is one of the top four exchanges this quarter, behind London, Euronext and Borsa Italiana. The IPO of poultry producer Gradus in August was the largest at the Bulgarian Stock Exchange since 2007, when First Investment Bank raised €42m - and the first listing in Sofia since Q4 2016.
The London Stock Exchange remained the most active exchange in Europe in Q3 by volume and values for the second quarter in a row, with 16 IPOs raising €1.9bn (£1.7bn). IPO volumes and values, however, are down by 41% and 29% respectively compared to Q3 2017 when 27 IPOs raised €2.7bn (£2.4bn). Four out of the top five IPOs in Europe in Q3 2018 listed on the London Stock Exchange, with the largest IPO this quarter being Amigo Holdings, the provider of guarantor loans in the UK, which raised €407m (£359m).
Mark Hughes, capital markets partner at PwC, said:
“Geopolitical headwinds and the summer hiatus muted activity in Q3, with European IPO values at their lowest levels for 2 years. The pipeline going into Q4 looks relatively healthy as volatility continues to be low and there a number of mega-IPOs expected.
"That said, the weak aftermarket performance of a number of recent IPOs and the wider uncertainty around the Brexit negotiations may deter prospective IPO candidates from completing a transaction on the public markets before the end of the year.”
Lucy Tarleton, capital markets director at PwC, added:
“The financial sector dominates once again in London, accounting for over 80% of London values with ASA International Group, the African and Asian focused global microfinance provider, showing the strongest share price performance post-IPO this quarter.
"With Brexit around the corner and negotiations still ongoing, it is promising to see a number of international issuers in the IPO pipeline, continuing to see London as ‘open for business’ and a key financial centre in Europe.”
Notes to editors.
IPO Watch Europe surveys all new primary market equity IPOs on Europe’s principal stock markets and market segments (including exchanges in Austria, Belgium, Croatia, Denmark, France, Germany, Greece, the Netherlands, Ireland, Italy, Luxembourg, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, Turkey and the UK) on a quarterly basis. Movements between markets on the same exchange are excluded.
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