IPO Watch Europe Q3 2016
European IPO market looks set to shrug off uncertainty to reach €25bn in 2016
Despite some post-EU referendum jitters, signs point to an uptick in activity for the IPO market towards the end of 2016 and into 2017, according to PwC’s latest IPO Watch Europe report.
The subdued start to the year carried into Q3 with the low level of activity hampered by the immediate turbulence following the UK’s vote to leave the European Union. In Q3, 52 European IPOs raised proceeds of €3.8 billion, a 65% drop from the €10.9 billion raised from 95 IPOs in Q2 and a 17% decrease in proceeds raised by 53 IPOs in Q3 2015. There were at least four IPOs planned for Q3 which were either cancelled or postponed early in the quarter, following the referendum result.
Key findings
- Q2 European IPO proceeds dropped 26% compared to Q2 last year, affected by global uncertainties including the EU referendum
- London was especially impacted, down 75% to €1.2bn (£0.9bn) and representing only 11% of European activity
- The rest of Europe fared better with IPO proceeds only down 6% to €9.7bn
- Following the outcome of the EU referendum in the UK, PwC expects IPO candidates to return gradually to the market towards the end of the year and early 2017, provided investor confidence improves and market uncertainties subside.
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