Money raised in European IPOs more than doubles in the third quarter

English money

The amount of cash raised in European initial public offerings (IPOs) has rocketed in the third quarter, according to data from PwC, to €8.2bn (£7.36bn) compared to €3.8bn in the same period last year.

London was the most active European exchange, hosting 36 per cent of European floats and accounting for 33 per cent of all proceeds raised.

Read more:London dominates the IPO market as financial services sector shines

But it fell short of taking the largest float, as this title was claimed by the €2.1bn listing of energy company Landis & Gyr Holding on the SIX Swiss Exchange. London's largest IPO, of Russian gold maker Polyus, raised a comparatively measly £551m.

“London bounced back from the disappointing performance in the third quarter of 2016, which was affected by the uncertainty and volatility arising from the UK’s EU referendum outcome,” said Lucy Tarleton, UK capital markets director at PwC.

“The third quarter of 2017 was London’s most active third quarter by volume since 2011, when 29 IPOs raised €1.1bn.”

The Polyus listing also underlined the regard which international firms hold for London's bourse, as it followed the second-quarter IPOs of Dubai's Ades International and Turkey's DP Eurasia and Global Ports Holding.

“Looking ahead, the pipeline looks promising for London IPOs, which includes a number of international companies. If favourable conditions continue, the fourth quarter should deliver a strong end to the year,” said Tarleton.

Europe's second largest IPO between July and September, of Polish telecoms company Play Communications, broke records when it listed for €1bn on the Warsaw Stock Exchange. It was the largest ever Polish IPO by a private company, and the largest European telecoms IPO since 2012.

Read more: London Stock Exchange boosted by Polyus, the largest Russian IPO of 2017

The Budapest Stock Exchange hosted its largest float for over a decade, with the IPO of haulage company Waberer’s International which raised €73m.

“The year is set to finish on a high note with a number of high profile large IPOs set to launch in the coming weeks,” said Mark Hughes, UK capital markets leader at PwC.

“However, with a number of companies undertaking dual-track processes, inevitably some of these companies may opt for a private sale process given the attractive valuations on offer.”

Read more:M7 mulls a £300m IPO in potential boost to London stock market

Full story: Money raised in European IPOs more than doubles in the third quarter: City A.M.

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