UK vote fails to float Europe's IPO boat

William Turvill
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Temperatures Soar To Highest Of The Year
The report suggested flotation activity would remain quiet until September (Source: Getty)

The EU referendum has been blamed for slowing flotation activity levels across Europe in a new report.

Mergermarket tracked 77 initial public offerings (IPOs), with €11.6bn (£9.9bn) raised, across the continent during the first six months of the year.

This was down from 115 floats, which raised €27.1bn, in the first half of 2015.

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The London Stock Exchange, including the alternative investment market (Aim), remained the largest single market.

But the number of IPOs – 25 – was down from 35 in the same period last year. And the total offering size, €2.8bn, was down 64.7 per cent year on year.

The biggest deals tracked during the period were outside of London.

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Dong Energy, which has a market capitalisation of €13.2bn, listed in Copenhagen with an offer size of €2.3bn. And ASR Nederland, which had an offer size of €1bn, and Philips Lighting, €750m, both listed in Amsterdam on Euronext.

“Market jitters in the lead-up to the UK’s EU referendum caused some spikes in volatility, but overall conditions were calm and conducive to continental European IPOs,” Dealreporter and Mergermarket’s European IPO snapshot report said.

“Several large deals were done successfully, such as DONG Energy, ASR, Philips Lighting and Basic-Fit. Others did not go so smoothly, however, with Spanish take-out company Telepizza and leisure park operator Parques Reunidos diving after listing.”

The report added: “The uncertainty created by the Brexit vote as well as the traditionally quiet summer period is likely to cut most IPO activity short until at least September.

“There is light at the end of the tunnel though, with some big deals in the pipeline.

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“Flotations of Russian oil company Russneft and RWE’s expected carve-out of its renewables and retail business are on the cards in the energy sector.

“The Nordic market shows little sign of slowing down, with payment solutions provider Nets and Finnish telecoms group DNA poised to go public in the latter half of the year.”

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