IPO Watch Europe Q2 2017

Our latest report reviews IPO activity during Q2 2017. European IPOs end the quarter on a high.

Nasdaq Nordic was Europe's most active exchange in terms of volumes, with increased cross-border IPO activity in London.

Most active quarter since Q4 2015 sees the return of mega-IPOs

The European IPO market ended Q2 2017 with a total value of €15.6bn from 103 IPOs, an increase of €4.7bn (43%) in money raised and an 8% increase in the number of IPOs compared to Q2 2016, when 95 IPOs raised €10.9bn. There was a late rush with three of the Top 5 IPOs pricing in the final two weeks of the quarter.

In mainland Europe,​ the ​Irish Stock Exchange was ​top in terms of values, supported by its only IPO of AIB​, however,​the Nordic Exchanges continue to be active with 41 IPOs raising over €1.6bn this quarter.

The trend of large listings seen in Madrid in Q1, continues into Q2 with Gestamp, the Spanish automotive business, raising €870m, and Unicaja raising €688m.

Decrease in IPO proceeds across Europe
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UK activity most impacted
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In London, 24 IPOs raised €2.2bn this quarter, an 83% increase in the value of IPOs, compared to the 21 IPOs in Q2 2016 which raised €1.2bn.  

The largest IPO in the quarter was the dual listing of Allied Irish Bank in Dublin and London, raising around €3bn with a valuation of €12bn. London also hosted its largest technology IPO since 2015 - Alfa Financial Software raised €321m.

Despite ongoing geopolitical uncertainty, London has shown it is still able to attract cross-border IPOs with ADES International (Dubai) raising €222m, Global Ports (Turkey) raising €184m and DP Eurasia (Turkey) raising €168m.

UK investors are confident about UK company growth prospects over the next three years

A separate PwC study on UK investor sentiment shows that 81% of 275 UK investors are confident about UK company growth prospects over the next three years. There is a feeling among UK investors that the Brexit negotiations will create opportunities despite the uncertainty, underlining the faith international groups have placed in a London IPO in recent weeks. 

The pipeline of overseas issuers looking at a future London listing is encouraging.

Pipeline picking up with encouraging start to Q4
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"With a number of IPOs pricing towards the end of the second quarter, the markets are proving resilient in the face of the forthcoming Brexit negotiations. Investors do remain selective, however, but after the expected summer IPO hiatus, we expect IPO activity across Europe in the second half of the year to be relatively strong."

Mark Hughes, Capital Markets Leader

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Mark Hughes
UK Capital Markets Leader
Tel: +44 (0)20 7804 3824
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Lucy Tarleton
UK Capital Markets Director​
Tel: +44 (0)20 7212 3856
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