Q3 2017 European IPO proceeds more than doubled from €3.8bn in 2016 to €8.2bn in Q3 2017.
London was the most active European exchange hosting 36% of all European IPOs (compared to 17% in Q3 2016) and accounting for 33% of all proceeds raised (compared to 8% in Q3 2016).
The largest European IPO was Landis & Gyr Holding AG, which raised €2.1bn on the SIX Swiss Exchange.
European IPO pipeline looks healthy across all industries and markets.
Q3 2017 started with a flurry of IPOs in July, including four of the quarter’s five largest IPOs. The IPO of the Swiss smart meter-maker, Landis & Gyr Holding AG, was the largest Swiss IPO in 11 years, and the second largest in Europe this year after the Allied Irish Banks plc IPO in June.
London was the most active exchange in terms of both IPO values and volumes, as 27 IPOs raised €2.7bn. The financials sector continued to dominate in London, accounting for 60% of London IPO values, the largest of which was the IPO of the activist investment fund, Sherborne Investors (Guernsey) C Ltd which raised £700m in July.
London IPO trends by offering value
London demonstrated its attraction as an overseas listing destination, as the Russian gold maker Polyus raised £551m on its return to the London Main Market in July. This follows on from the Q2 IPOs of ADES International from Dubai and DP Eurasia and Global Ports Holding from Turkey, underlining London’s leading status for cross border IPOs in Europe.
Lucy Tarleton, UK capital markets director at PwC, said:
“London bounced back from the disappointing performance in Q3 2016 which was affected by the uncertainty and volatility arising from the UK’s EU referendum outcome. Q3 2017 was London’s most active third quarter by volume since 2011 when 29 IPOs raised €1.1bn.
“Looking ahead, the pipeline looks promising for London IPOs, which includes a number of international companies. If favourable conditions continue, Q4 should deliver a strong end to the year.”
The second largest European IPO of Q3 2017 was also a record breaker – the Polish telecoms company Play Communications SA IPO raised €1.0bn on the Warsaw Stock Exchange and was the largest ever Polish IPO by a private company, and the largest European telecoms IPO since 2012.
Keeping the spotlight on Eastern Europe, the Budapest Stock Exchange hosted its largest IPO for over a decade, with the IPO of haulage company Waberer’s International which raised €73m.
Quarterly European IPO activity since 2013
European IPO activity since 2007 (YTD and full year)
Mark Hughes, UK capital markets leader at PwC, concluded:
“We have seen European IPOs gathering momentum this year with money raised to date already above the €27.9bn raised in the whole of 2016. The year is set to finish on a high note with a number of high profile large IPOs set to launch in the coming weeks. However, with a number of companies undertaking dual-track processes, inevitably some of these companies may opt for a private sale process given the attractive valuations on offer.”
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.
This survey was conducted between 1 April and 30 September 2017 and captures introductions as well as IPOs based on their first trading date. All market data is sourced from the stock markets themselves and has not been independently verified by PricewaterhouseCoopers LLP.
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