IPO market ends 2015 on a high with estimated total annual proceeds increasing by 15% year on year

Published at 00:01 AM on 11 December 2015

PwC expects to see more than €58 billion of proceeds raised in FY15, after Q4 delivered five mega IPOs raising more than €1.5billion each across Europe.

London was the most active exchange with just over €16 billion (c. £11.5 billion) of estimated annual proceeds. Average deal size rose to over €380 million (£275 million), the highest since Q2 2011 (€491m), when the jumbo IPO of Glencore completed.

PwC believes access to debt will continue into the first half of 2016 but it may prove more challenging or indeed more expensive. This could be the tipping point for M&A, leaving the IPO market to continue at a strong and steady pace.

In Europe we expect the first half of 2016 to yield c.€25 billion of proceeds, falling back from the supercharged levels seen in H1 2015.

2016 looks set to be the year of the privatisation, with a wave of candidates expected to access the IPO markets in the first half of the year across a number of sectors.

 

Vivienne Maclachlan, Capital Markets director at PwC, said:

 “As the final curtain falls on 2015, big has indeed proved beautiful this year – mega deals dominated the landscape, both in M&A and in the IPO market, with big IPOs attracting a significant amount of buzz at the back end of the year and living up to expectation in after-market performance. I think we all felt a bit gloomy at the end of the summer, as postponements and pulled deals increased and market jitters ensued - but there have been some really exciting stories.

“Notably PE-backed deals such as Worldpay and Auto Trader –raising more than €5 billion between them – have served to make this a memorable year.”

Mark Hughes, Capital Markets leader at PwC, said:

 “Although 2015 saw significant disruption and volatility in the IPO market, we continue to be optimistic about the prospects for 2016.  Good after-market performance for the deals which completed this year sets the scene for a robust pipeline of companies waiting in the wings to access the market.  Having said that, we expect a softer start to the New Year – perhaps a lower number of deals but we do expect a continuation of the mega deal trend.  

“We already know that privatisations will be key to the 2016 story in continental Europe – specifically in Italy and the Netherlands – but here in London, we expect the financial and industrial sectors to dominate.

2015 Top ten largest IPOs

Quarter

Company

€m (excl. greenshoe)

€m (incl. greenshoe)

Sector

Market

Type *

Q1

Aena

       3,875

       4,263

Industrials

BME

P

Q4

ABN AMRO Group

       3,337

       3,838

Financials

Euronext

P

Q4

Poste Italiane

       3,058

       3,113

Financials

Borsa Italiana

P

Q4

Worldpay Group

       2,913

       3,350

Industrials

London

PE

Q2

Cellnex Telecom

       1,946

       2,141

Telecom

BME

O

Q1

Auto Trader

       1,937

       2,228

Consumer Services

London

PE

Q1

Sunrise Communications

       1,882

       2,148

Telecom

SIX Swiss

PE

Q4

Amundi Group

       1,501

       1,671

Financials

Euronext

O

Q4

Covestro

       1,500

       1,500

Basic Materials

Deutsche Börse

O

Q2

Woodford Patient Capital Trust

       1,108

       1,108

Financials

London

O

 

Total

     23,057

     25,360

     

* P = Privatisation; PE = Private Equity backed; O= other

 

 

ENDS

Notes to editors:

IPO Watch Europe surveys all new primary market equity IPOs on Europe’s principal stock markets and market segments (including exchanges in Austria, Belgium, Croatia, Denmark, France, Germany, Greece, the Netherlands, Ireland, Italy, Luxembourg, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, Turkey and the UK) on a quarterly basis. Movements between markets on the same exchange are excluded.

This survey was conducted between 1 October and 30 November 2015 and captures IPOs based on their first trading date. All market data is sourced from the stock markets themselves and has not been independently verified by PricewaterhouseCoopers LLP.

* The average IPO proceeds exclude IPOs raising less than $5m

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

 

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

 

©2015 PwC. All rights reserved


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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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