IPO Watch Europe Q3 2019

European IPO markets quiet in Q3 2019, save for two mega-IPOs

IPOs of TeamViewer and EQT at the end of Q3 2019 boost a thin quarter of IPO activity.

After a busy Q2, markets were supportive, but Brexit and broader geopolitcal uncertainty continued

A combination of the summer break and Brexit uncertainty led to a quiet quarter in Q3 2019, with volumes falling by 52% when compared to last year. Uncertainty around the Brexit negotiations and global economic growth concerns may deter prospective IPO candidates from completing a transaction on the public markets before the end of the year.

Following a number of significant IPOs pricing at the end of June, total proceeds finished the quarter up by 24% on the same period last year in which 69 IPOs raised €9.2bn.

The increase in Q2 over Q1 2019 was largely driven by several mega-IPOs, including Nexi SpA, Network International Holdings, Trainline plc, Traton SE and Stadler Rail AG, which raised a combined €7.4bn.
Following a number of significant IPOs pricing at the end of June, total proceeds finished the quarter up by 24% on the same period last year in which 69 IPOs raised €9.2bn.

The increase in Q2 over Q1 2019 was largely driven by several mega-IPOs, including Nexi SpA, Network International Holdings, Trainline plc, Traton SE and Stadler Rail AG, which raised a combined €7.4bn.
UK IPO activity

Three companies listed in London in Q3 2019 raising £332m - the lowest Q3 value since 2016

Despite being the third most active exchange in Europe by value during Q3 2019, with three IPOs raising £0.3bn (€0.4bn), IPO volumes and values for London were down by 77% and 80% respectively compared to Q3 2018 when 13 IPOs raised €1.9bn (£1.7bn).

However, going into Q4 it is of note that London appears to retain its position as an international listing venue of choice, with companies such as Helios Towers, the African telecom tower infrastructure company, in process to list in London in October.

European IPOs raised €3.8bn in Q3 2019 - a marginal increase on the same period last year

European IPOs raised a total of €3.8bn in Q3 2019 - a marginal increase on the same period last year in which €3.7bn was raised. This was largely due to two IPOs, the German software company TeamViewer AG on the Deutsche Börse, which raised €2.0bn, and Swedish private-equity group EQT Partners AB on the Nasdaq Stockholm, which raised €1.2bn. Together, these IPOs raised over three quarters out of the total €3.8bn raised this quarter.

Two of the top three IPOs were payments providers helping to ensure that Financials remained the largest sector in Q2, accounting for 43% of H1 2019 value. In the UK, seven of the 13 listings were from the Financials sector, raising a total of £2.0bn.
Two of the top three IPOs were payments providers helping to ensure that Financials remained the largest sector in Q2, accounting for 43% of H1 2019 value. In the UK, seven of the 13 listings were from the Financials sector, raising a total of £2.0bn.
European IPO activity

"Q3 2019 has been a thin quarter for IPOs with issuance amounting to €3.8bn. This is marginally ahead of the same quarter last year, due primarily to the IPOs of TeamViewer at €2.0bn in Germany and EQT Partners at €1.2bn in Stockholm. However, volumes have been low, even taking account of the fact that Q3 bridges the summer break in July and August, with 16 IPOs in the period compared to 33 in Q3 2018. It was a revealing insight that the third largest IPO in Europe was JPMorgan Global Core Real Assets at €169m."

Peter Whelan, UK IPO Lead at PwC

Contact us

Peter Whelan

Partner, UK IPO Lead, PwC United Kingdom

Tel: +44 (0)7770 977 937

Chris Ersser

Director , PwC United Kingdom

Tel: +44 (0)7808 035662

John Reilly

Director, PwC United Kingdom

Tel: +44 (0)7738 311137

Simon Williams

Director, PwC United Kingdom

Tel: +44 (0)7808 107167

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