European IPO proceeds reached new highs in 2015

Peter D'hondt Partner Feb 02, 2016


 
  • European IPOs finished 2015 on a high with total annual proceeds up 16% (to €57.4bn) and average offering value* up 27% (to €248m) year on year
  • London IPO proceeds decreased by 16% as the London market was impacted by general election fears, Chinese contagion and tumbling oil prices
  • PwC’s London outlook remains cautious and less optimistic than this time last year, with overall proceeds expected to fall in 2016 

 

               

Peter D’hondt, Partner at PwC in Belgium, said:

“As we start 2016, a cold chill has descended across pretty much every market globally – this is certainly a more complex climate to that of 2015 and indeed 2014. We rounded off last year with six bumper IPOs, which really saved the day from an annual IPO proceeds standpoint and actually took us to the highest IPO proceeds since 2007. But that statistic really does mask the fact that overall it was not a particularly memorable year for London IPOs."

"This year, we expect to see the number of companies coming to market to marginally decline, as investors continue to scrutinise investment opportunities and those that can wait, will wait. Having said that, I think 2016 proceeds will be bolstered by the continuing trend of mega deals -the too-big-to-miss-out sentiment - and that we will see a recovery towards the middle of the year. The effect on Europe of the expected election paralysis in the US market remains to be seen.”

Volatility compared to IPO proceeds

IPO watch 2015 volatility compared to ipo proceeds

“As the curtains closed on 2015, it was really the giant IPOs of Aena, ABN AMRO and Worldpay, all raising €3bn plus and with good after market performance, which made headlines.”

adds Peter D’hondt, Partner at PwC Belgium

 

“These larger IPOs will continue to be a dominant feature in 2016’s London IPO market, with Clydesdale Bank the first bigger listing of this year. Looking ahead, 2016 will feature companies demonstrating strong and predictable growth stories with more focus than ever before on the longer term outlook."

"Technology and financial sectors will be strongly evident, but the IPO market will have to overcome the adversity of rock bottom oil prices, increasing interest rates and continued exchange rate volatility. While we remain optimistic about UK growth, we are living in complicated times and it remains to be seen if the market can recover from its current bout of indigestion.”

 

Number of €1bn+ IPOs per year

number of 1bn+ ipos per year

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Peter D'hondt
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