European IPO activity on a high

Stock market flotations and capital raisings got off to a solid start in Europe during the first three months of 2018, new figures today reveal.

Initial public offerings (IPOS) raised some €12.5 billion (£10.9bn) in the first three months of the year, well over double the €4.6bn raised in the first quarter of 2017, according to Pwc’s latest IPO watch.

This was largely due to the major IPOS of Siemens’ Healthineers and Deutsche Bank’s DWS Group, which raised €3.7bn and €1.3bn respectively, boosting European IPO values towards the end of the quarter.

The London Stock Exchange remains the number one exchange in Europe in terms of volume, although IPO proceeds are down from last year with 16 IPOS raising £1.3bn compared to £1.8bn from 20 IPOS in Q1 2017.

Lucy Tarleton, capital markets director at PWC, said: “Q1 is typically a quieter quarter in terms of UK IPO activity, and last year it was boosted by a backlog of IPOS after a pause in activity following the EU referendum.

“With the public markets frequently in competition with valuations from the private sector and the prospect of selling shareholders retaining a significant stake following IPO, dual-track processes are increasingly common.

“Issuers continue to be attracted to the UK market with a number of cross-border IPOS set to launch in London.”