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European IPO markets rebounded in the second quarter from a dismal start to the year. The region saw 45 IPOs with a combined offering size of €12.69bn during the second quarter of 2019. Here are 5 trends that emerged during H1 2019.
1. Low pricing
In the first half of 2019, overall European bookbuild IPOs were priced towards to the low end of the price range. This represents a tougher final pricing environment with a similar picture of IPOs’ final pricing based on proceeds raised from IPOs.
2. London Stock Exchange sees highest value of IPOs
The London Stock Exchange ranked as the most active stock exchange in terms of values despite the never-ending Brexit rhetoric. The LSE accounted for €5.49bn by value, 42% of the region’s total, up from €2.92bn a year earlier.
3. Technology IPOs top deal count
There were 19 technology listings (30% of total listings) for a combined offer size of €5.5bn across the region. Among the largest sector floats were the Trainline and Nexi.
4. Demergers will continue
Corporate simplification deals such as Volkswagen’s demerger and listing of Traton look set to continue. Among potential demerger IPOs, Deutsche Banh said it will consider a sale or IPO of UK based subsidiary Arriva.
5. The buyside favour large, liquid transactions
Demand for liquid investments with secondary markets and index inclusions were in favour during the first half of 2019. The buyside will likely remain selective and focused on large, liquid transactions.
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