IPO Watch Europe Q1 2017

Our latest report reviews IPO activity during Q1 2017. Supportive market conditions build momentum for the rest of the year.

London re​gains its position as Europe's most active exchange, however, the two largest IPOs have been on the BME.

Supportive market conditions help build momentum for European IPOs

The value of European IPOs in Q1 2017 increased by 28% (€1bn) compared to Q1 2016, and average deal size increased by 6% - however, no IPOs raised over €1bn.

Although most activity was driven by the London Stock Exchange, accounting for ​almost half of the value of IPOs across Europe (€2.1bn), the two largest IPOs have been on the Bolsas y Mercados Espanoles (BME)​,​ the Spanish stock exchange: Prosegur Cash SA raised ​​€750m and Neinor Homes SAU raised €709m.

Decrease in IPO proceeds across Europe
UK activity most impacted

The value of London IPOs remained in line with Q1 2016 raising £1.8bn, but volumes ​increased with ​20 IPOs in Q1 2017

The financial sector accounted for 87% of the value of London IPOs​, including BioPharma Credit plc, which raised ​​€7​05m​ and Ocelot Partners Ltd, which raised ​​€​395m​.

Increasing confidence in European IPO markets

Despite continued political uncertainty with the commencement of Brexit negotiations and the forthcoming French and German elections, 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 Europe.​

Pipeline picking up with encouraging start to Q4

"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."

Mark Hughes, Capital Markets Leader

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Mark Hughes
UK Capital Markets Leader
Tel: +44 (0)20 7804 3824

Lucy Tarleton
Tel: +44 (0)20 7212 3856

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