With the global and European IPO market experiencing a resurgence, GrowthBusiness takes a look at the top ten listings during the first three months of the year.
Takings from IPOs during the first quarter of the year (€11.4 billion) has exceeded the combined total of the same period from the proceeding four years.
Retail dominated the European IPO market with eleven listings contributing €2.8 billion, while eight originated in London and contributed a vast majority of the sector proceeds.
London was successful in tripling the proceeds raised during the first quarter of the year, taking €5.9 billion compared to €1.9 billion in 2013. Despite the main market accounting for €4.6 billion through 14 IPOs, London’s junior exchange the Alternative Investment Market (AIM) was responsible for €1.3 billion.
The 18 IPOs closed on AIM included those for Boohoo, which raised €364 million, and Manx Telecom, which raised €189 million.
Figures from professional services firm PwC suggests that there are ‘at least’ 25 IPOs in the pipeline for the second quarter of the year, raising a possible €3.8 billion. The firm adds that 15 IPOs with over €250 million proceeds are expected before the end of the summer.
Of the ten largest listings in Europe during the period, London accounted for four – with three of those businesses having headquarters in the UK. Retail chains Pets at Home and Poundland were part of the retail revival which has dominated capital market activity.
Poundland grew revenue from £641.5 million in 2011 to £880.5 million in 2013
| €m | Sector | Market | Country of origin | Private equity backed | |
|---|---|---|---|---|---|
| Altice | 1,305 | Telecoms | Euronext | France | No |
| ISS | 1,098 | Industrials | OMX | Denmark | Yes |
| Kennedy Wilson Europe Real Estate | 1,017 | Financials | London | UK | No |
| Lenta | 696 | Consumer services | London | Russia | Yes |
| Gaztransport & Technigaz – GTT | 621 | Industrials | Euronext | France | Yes |
| Pets at Home Group | 589 | Consumer services | London | UK | Yes |
| AO World | 513 | Consumer services | London | UK | No |
| Hispania Activos Immobiliarios | 500 | Financials | BME | Spain | No |
| Poundland Group | 541 | Consumer services | London | UK | Yes |
| Lar Espana Real Estate Scoimi | 400 | Financials | BME | Spain | No |
| Total | 7,190 |
Source: PwC
Richard Weaver, capital markets partner at PwC, comments, ‘This quarter is the first time since 2007 that we have witnessed such high volumes in the IPO markets across most of Europe.
‘In the last two quarters we’ve seen larger deals, high subscription levels and good aftermarket performance, all signs of a wide-open IPO window. We are also still seeing a degree of residual caution in the market which means IPO candidates must still present a clear and well substantiated equity story if they want to be part of must-own deals.’
