PwC: Healthy pipeline of IPOs emerging in Europe

London performs well as Ireland shows strong improvement

The Irish Stock Exchange, Dublin: Irish companies have been active in IPO activity in the first three months of 2017. Photograph: Dara Mac Dónaill

The Irish Stock Exchange, Dublin: Irish companies have been active in IPO activity in the first three months of 2017. Photograph: Dara Mac Dónaill

 

A healthy pipeline of IPOs is beginning to emerge across Europe according to PwC’s IPO watch Europe survey.

The survey notes that Irish companies have been active in IPO activity in the first three months of 2017 with glass and metal container giant Ardagh Group floating on the New York Stock Exchange in March and AIB expected to list on the Irish Stock Exchange in the second quarter of this year.

“While Q1 2016 was affected by political uncertainty and concerns over global economic growth, conditions this year have been more favourable for IPOs,” said Denis O’Connor, transaction services partner at PwC Ireland.

The five largest European IPOs in the first quarter of 2017 came in March and two of those were hosted on the Spanish stock exchange. Security services group Posegur cash raised €750 million while Spanish home builder Neinor Homes raised €709 million.

Top performer

London was the top performer, regaining its position as Europe’s most active exchange with 20 IPOs that raised a total of £1.8 billion, matching its pre-Brexit performance in the first quarter of 2016. The financial sector accounted for 87 per cent of London proceeds, including BioPharma Credit, which raised £610 million, and Ocelot Partners, which raised £342 million.

In total there were 53 European IPOs in the first quarter of this year which raised €4.5 billion, an increase of 28 per cent compared with the same period in 2016.

Mr O’Connor added: “Despite the lead up to the UK invoking article 50 and the Dutch elections this quarter, the VSTOXX 50 index, measuring market volatility, has remained low throughout the period.”