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European IPO activity increases tenfold in Q3 2013 compared to same quarter of 2012

Date: 10/08/2013
Source: PwC

• Mid-sized players entry to the markets paves the way for a much healthier IPO market and pipeline;
• More than a dozen PE-backed companies considering IPOs in the coming months;
• London tops quarter again, raising two thirds of total European IPO proceeds.


 52 IPOs raised €3 bn in Europe in Q3 2013, almost ten times the amount raised during the same period in 2012, says PwC’s IPO Watch Europe report.

The quarterly survey of the IPO market has tracked a return of mid-size companies, especially in London, which bodes well for a more resilient IPO pipeline across Europe.

A busy fourth quarter is expected, with Royal Mail’s debut in early October widely expected to be the largest IPO in Europe this year. PwC is also seeing the return of companies who had postponed their IPOs in the past three years due to unfavourable market conditions. The healthy pipeline is a result of pricing remaining positive and good after market share price performance.

Only 20% of deals seeking to raise more than €25m were pulled or withdrawn in the first 9 months of the year, the lowest level of shelvings since 2007.

Private equity backers have continued representing a significant proportion of the IPO activity in the quarter with 4 IPOs raising €1bn. Year to date private equity backed transactions have raised more than half of all European IPO proceeds and PwC expects private equity to drive activity in the near future.

In Q4 2013 the Bucharest Stock Exchange is preparing to host two IPOs. Romgaz, the Romanian state owned gas producer, is preparing a dual listing on the Bucharest and London Stock Exchanges and aims to raise € 600 m. AdePlast, a Romanian private construction materials producer, also plans an IPO. If completed this would be the first IPO of a private company since 2008.

On October 4, 2013, 10% of the shares of Nuclearelectrica, the state owned nuclear power producer, began to trade on the Bucharest Stock Exchange. Nuclearelectrica completed an IPO in September 2013 which raised € 63 m, which values the entire company at € 630 m. This IPO was the first one involving a state owned entity since 2007.

The transactions by Nuclearelectrica and Romgaz are part of wider privatization commitments that Romania has agreed with the International Monetary Fund.

“The pipeline for 2014 looks encouraging, but largely depends on the success of the Romgaz and AdePlast IPOs. If successful they would send a strong message to investors and the Romanian Private Sector that IPOs represent a credible source of returns for investors and source of finance for entrepreneurs”, stated Sergiu Gherasim, Director, Capital Markets, PwC Romania.

Although total proceeds for the quarter have not returned to the highs of Q3 2011, which saw three bumper IPO’s in Spain and Poland, Q3 2013 has seen more transactions above €250 m.

London dominated the quarter with more than 66% of total IPO proceeds raised, or €2.1 bn. Other European activity included two IPOs in Frankfurt and one IPO in Ireland raising €500 m and €310m respectively.

As we move into the final quarter of the year, the outlook remains positive against a backdrop of 171 IPOs in Europe in the year to date, raising a total of €11.7 bn, which is more than three times the amount raised in the same period in 2012.

The attractiveness of new floats is reflected by the strong pricing of recent IPOs- 8 of the top 10 European IPO’s this year have been valued at the top end of the price range, demonstrating both healthy investor appetite but also more realistic pricing aspirations and expectations.

Post IPO share performance has also remained positive - with Crest Nicholson and Al Noor Hospital’s share price rising by 51% and 45% respectively at the end of Q3 2013 compared to its debut share price.



Further afield, the US markets are preparing themselves for what could be the largest IPO’s in recent history. Both Twitter and Ali Baba, informally known as the ‘Asian Amazon’ are in the process of seeking a US listing although whether these will be hosted on the NYSE or Nasdaq is currently unknown.

About PwC

PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 184,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com/ro

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.

© 2013 PwC. All rights reserved.

European IPO activity increases tenfold in Q3 2013 compared to same quarter of 2012

• Mid-sized players entry to the markets paves the way for a much healthier IPO market and pipeline;
• More than a dozen PE-backed companies considering IPOs in the coming months;
• London tops quarter again, raising two thirds of total European IPO proceeds.



Bucharest, 8 October 2013 – 52 IPOs raised €3 bn in Europe in Q3 2013, almost ten times the amount raised during the same period in 2012, says PwC’s IPO Watch Europe report.

The quarterly survey of the IPO market has tracked a return of mid-size companies, especially in London, which bodes well for a more resilient IPO pipeline across Europe.

A busy fourth quarter is expected, with Royal Mail’s debut in early October widely expected to be the largest IPO in Europe this year. PwC is also seeing the return of companies who had postponed their IPOs in the past three years due to unfavourable market conditions. The healthy pipeline is a result of pricing remaining positive and good after market share price performance.

Only 20% of deals seeking to raise more than €25m were pulled or withdrawn in the first 9 months of the year, the lowest level of shelvings since 2007.

Private equity backers have continued representing a significant proportion of the IPO activity in the quarter with 4 IPOs raising €1bn. Year to date private equity backed transactions have raised more than half of all European IPO proceeds and PwC expects private equity to drive activity in the near future.

In Q4 2013 the Bucharest Stock Exchange is preparing to host two IPOs. Romgaz, the Romanian state owned gas producer, is preparing a dual listing on the Bucharest and London Stock Exchanges and aims to raise € 600 m. AdePlast, a Romanian private construction materials producer, also plans an IPO. If completed this would be the first IPO of a private company since 2008.

On October 4, 2013, 10% of the shares of Nuclearelectrica, the state owned nuclear power producer, began to trade on the Bucharest Stock Exchange. Nuclearelectrica completed an IPO in September 2013 which raised € 63 m, which values the entire company at € 630 m. This IPO was the first one involving a state owned entity since 2007.

The transactions by Nuclearelectrica and Romgaz are part of wider privatization commitments that Romania has agreed with the International Monetary Fund.

“The pipeline for 2014 looks encouraging, but largely depends on the success of the Romgaz and AdePlast IPOs. If successful they would send a strong message to investors and the Romanian Private Sector that IPOs represent a credible source of returns for investors and source of finance for entrepreneurs”, stated Sergiu Gherasim, Director, Capital Markets, PwC Romania.

Although total proceeds for the quarter have not returned to the highs of Q3 2011, which saw three bumper IPO’s in Spain and Poland, Q3 2013 has seen more transactions above €250 m.

London dominated the quarter with more than 66% of total IPO proceeds raised, or €2.1 bn. Other European activity included two IPOs in Frankfurt and one IPO in Ireland raising €500 m and €310m respectively.

As we move into the final quarter of the year, the outlook remains positive against a backdrop of 171 IPOs in Europe in the year to date, raising a total of €11.7 bn, which is more than three times the amount raised in the same period in 2012.

The attractiveness of new floats is reflected by the strong pricing of recent IPOs- 8 of the top 10 European IPO’s this year have been valued at the top end of the price range, demonstrating both healthy investor appetite but also more realistic pricing aspirations and expectations.

Post IPO share performance has also remained positive - with Crest Nicholson and Al Noor Hospital’s share price rising by 51% and 45% respectively at the end of Q3 2013 compared to its debut share price.


Further afield, the US markets are preparing themselves for what could be the largest IPO’s in recent history. Both Twitter and Ali Baba, informally known as the ‘Asian Amazon’ are in the process of seeking a US listing although whether these will be hosted on the NYSE or Nasdaq is currently unknown.

About PwC

PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 184,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com/ro

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.

© 2013 PwC. All rights reserved.

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