PwC expects surge in European IPOs to continue

India Infoline News Service | Mumbai |

London tripled the proceeds raised on its exchanges in Q1 2014, posting close to €5.9bn compared to €1.9bn in the same quarter of 2013.

Renewed vigour in the European IPO market has meant cash raised by companies going public in the first quarter of 2014 has exceeded Q1 values for the previous four years in aggregate, generating €11.4bn, says PwC’s IPO Watch report, published today. This comes in the wake of 2013 European IPO proceeds increasing by 135% to €26.5bn. -Renewed vigour in the European IPO market has meant cash raised by companies going public in the first quarter of 2014 has exceeded Q1 values for the previous four years in aggregate, generating €11.4bn, says PwC’s IPO Watch report, published today. This comes in the wake of 2013 European IPO proceeds increasing by 135% to €26.5bn.

The Euronext exchanges generated €2.1bn as telecoms group Altice raised €1.3bn in
Amsterdam and OMX, the Nordic exchange, posted €1.9bn in Q1, largely attributable to the float of service company ISS which generated almost €1.1bn. In a clear example of improving economic conditions, the comparative period in 2013 saw less than €5 million being raised by IPOs on either exchange. Spain also hosted two of the top 10 floats by value this quarter, the first sizeable IPOs in Madrid since the summer of 2011.

London tripled the proceeds raised on its exchanges in Q1 2014, posting close to €5.9bn compared to €1.9bn in the same quarter of 2013. Of the €5.9bn raised, the Main Market hosted 14 IPOs, raising €4.6bn while the remaining €1.3bn was generated on the resurgent AIM market.

AIM has increased from six IPOs raising €43m in Q1 2013 to 18 IPOs generating €1.3bn. These included Boohoo – €364m (retail); DX Group – €244m (transportation); Manx Telecom - €189m (telecoms); and RM2 International - €166m (logistics).

Across the London exchanges, eight retail IPOs, in the Consumer Services sector, raised €2.8bn, including Lenta, the largest retail IPO in Europe in Q1 2014. The largest London IPO came from the property sub sector when Kennedy Wilson Europe Real Estate raised €1.0bn.

Mark Hughes, capital markets partner at PwC, said: “Retail has been the story of the quarter, especially in London. We are seeing a number of mixed technologies coming to market that have attracted significant investor interest. This is particularly relevant for retail companies with a defined online growth strategy and we expect to see more retail stories listing before summer.”

 

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