Actionable Ideas for Companies and Sponsors

The European IPO New Issue Market Will Continue to Be Strong in 2018

European IPO issuance in 2017 rose 54% in volume year-on-year, as 181 IPOs priced across the region, raising gross proceeds of $52 billion, and we expect this trend to continue. The UK, Italy, Switzerland, Spain and Germany were the most active markets with 61% of the total IPO volume. Financials, technology, real estate, automotive and healthcare were the leading sectors, contributing 67% of total volume. Despite having the largest number of IPOs priced since 2014, the median IPO size in 2017 was $131 million, meaning the market has been receptive to offerings from mid-sized companies. Corporate issuance was very strong, and the percentage of sponsor-backed IPOs was at its lowest since 2012 at 23%. The IPO environment was more subdued in the UK in the second half of 2017; however, successful UK IPOs can still be achieved through early investor engagement before launching the deal publicly, and by generating demand from anchor investors to offset any volatility during the public marketing period.