Initial public offerings (IPOs) in Europe suffered another difficult quarter in the last three months of 2011 as London continued to lead continental activity, new statistics show.
Research from accountancy firm PricewaterhouseCoopers (PwC) reveals that during the fourth quarter of 2011 78 IPOs raised €866 million (£714 million), an 83 per cent decline year-on-year.
The firm’s IPO Watch Europe report shows that, despite the low levels being experience across Europe, London ‘dominate activity in a muted quarter’ raising €800 million (92 per cent of total European IPO value).
Mark Hughes, capital markets partner at PwC, says that during 2011 markets ‘failed to ignite’ after the summer as many had hoped they would.
He adds: ‘Looking at the year as a whole, London has continued to lead the European IPO landscape with international and natural resources IPOs making up for the weakness of the domestic IPO market.’
The European findings for the fourth quarter of 2011 represent an 81 per cent decrease in offerings values when compared to the third quarter of the year.
However the report finds that even with a ‘subdued’ second half of 2011, annual European IPOs raised €26.5 billion, in line with 2010.
A strong showing from London meant that it generated €14.6 billion, more than half of money raised, from a quarter of all IPO deals across Europe.
Richard Weaver, capital markets partner at PwC, comments: ‘Companies considering an IPO in 2012 should prepare and position themselves to be “ready to go” when the windows open.
‘Exactly when markets will pick up again is uncertain. The Olympics may be well under way by the time the markets get out of the starting blocks and in order to access the key IPO windows in 2012, companies will have to ensure that the groundwork is completed well in advance.’
Outside of Europe the research shows the Hong Kong experienced a 43 per cent decline in money raised even though it saw a number of international luxury brand companies list there.
In the US mega deals meant that the first half of the year raised €25.6 billion in 2011, a 13.4 per cent decrease on 2010, and largely attributable to the IPO of General Motors.