Supportive market conditions have helped European IPOs raise €4.5bn in Q1 2017. London regained its position as Europe’s most active exchange, building momentum for the rest of 2017 with 20 IPOs raising a total of £1.8bn matching the £1.8bn raised in Q1 2016. This is according to latest figures by PwC, published today.
The financial sector accounted for 87% of London proceeds, including BioPharma Credit, which raised £610m (€705m) and Ocelot Partners, which raised £342m (€395m).
Quarterly European IPO activity since 2013
Mark Hughes, Capital Markets partner at PwC, said:
“Q1 2017 numbers combined with a strong medium term pipeline of both domestic and foreign issuers, suggest that London is well placed to continue as Europe’s premier exchange as the UK negotiates its exit from the EU. Issuers will continue to be attracted to London by the liquidity of the financial markets, the depth and breadth of the investor base and the regulatory and business framework.”
Bolsas y Mercados Espanoles (BME) the Spanish stock exchange, hosted the two largest European IPOs of the quarter, security services group, Prosegur Cash raised €750m and Spanish home builder Neinor Homes raised €709m.
To give some indication of investors’ appetite, the Neinor Homes IPO was oversubscribed in just one day, which for a Spanish property company would have been unthinkable until recently. The recent uptick in Spanish activity has been supported by the general improvement in market conditions and political stability. The forthcoming BME IPOs of Gestamp and Unicaja look to continue this trend into Q2 2017.
Lucy Tarleton, Capital Markets director at PwC, said:
“While Q1 2016 was affected by political uncertainty and concerns over global economic growth, conditions this year have been more favourable for IPOs. Despite the lead up to the UK invoking Article 50 and the Dutch elections this quarter, the VSTOXX50 index, measuring market volatility, has remained low throughout the period. This combined with the low interest rate environment, and investors being keen to seek out and back IPOs with well supported compelling equity stories, means that a healthy pipeline of IPOs is beginning to emerge across the European continent.”
Five largest IPOs of Q1 2017
|Mar-17||Prosegur Cash SA||750||Industrials||BME|
|Mar-17||Neinor Homes SAU||709||Financials||BME|
|Mar-17||BioPharma Credit plc||705||Financials||London|
|Mar-17||Ocelot Partners Ltd||395||Financials||London|
|Mar-17||Aumann GmbH||218||Industrials||Deutsche Börse|
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