Europe IPO market up 5pc in first half

THE European IPO market posted a 5pc increase in money raised in the first half of 2018, with total proceeds of €21.8bn.

The number of initial public offerings was up 4pc at 168.

The figures are contained in a new report from PwC, which said that after a strong first quarter activity had become subdued in the second quarter – with a 43pc decrease in money raised and a 7pc decrease in IPO numbers compared to the same quarter last year.

Activity this year was boosted by large offerings from health care business Siemens Healthineers, which raised €4.2bn, and Deutsche Bank’s asset manager DWS Group, which raised €1.3bn).

Both of those companies listed on the Deutsche Borse in Frankfurt.

Activity was strong in Dublin in the first half also, where the Irish Stock Exchange was acquired by Euronext and rebranded as Euronext Dublin.

Edtech business, virtual reality education and property investor Yew Grove Reit completed flotations, while Glenveagh Properties and Greencoat Renewables raised fresh capital.

But with geopolitical matters ranging from trade disputes to Brexit posing uncertainty, PwC warned that the market could become more difficult.

“Volatility could well creep back into the markets, potentially unsettling the IPO markets across Europe,” said Denis O’Connor, from PwC Ireland’s transaction services arm.

“Pricing will likely remain a challenge and investors are increasingly selective. That said, we expect to see the volume of IPO activity picking up again in the second half of the year.

“Despite a more subdued second quarter, and the current economic and political outlook, the market is open and deals are being done.”