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European IPO Proceeds Reached New Highs in 2015, But Market Conditions Likely to Hinder Activity in First Half Of 2016, Says Pwc’s Latest IPO Watch

Date: 02/29/2016
Source: PwC

• European IPOs finished 2015 on a high with total annual proceeds up 16% (to €57.4bn) and average offering value* up 27% (to €248m) year on year;
• London IPO proceeds decreased by 16% as the London market was impacted by general election fears, Chinese contagion and tumbling oil prices;
• PwC’s London outlook remains cautious and less optimistic than this time last year, with overall proceeds expected to fall in 2016;
• On the Bucharest Stock Exchange there were 5 IPOs last year, on the AeRO market, but the total value of these IPOs was smaller than that registered in the Electrica IPO in 2014 (444 million Euro).


Bucharest, 29 February 2016 – The London IPO pipeline still contains attractive investment opportunities, but increases in the number of postponed or cancelled deals are expected in 2016 as companies battle against market volatility and challenging market conditions, according to PwC’s latest IPO Watch. 61 IPOs were postponed or withdrawn in 2015 (compared to 49 in 2014), 44 of which were due to market conditions.

Volatility compared to IPO proceeds


“As we start 2016, a cold chill has descended across pretty much every market globally – this is certainly a more complex climate to that of 2015 and indeed 2014. We rounded off last year with six bumper IPOs, which really saved the day from an annual IPO proceeds standpoint and actually took us to the highest IPO proceeds since 2007”, stated Diana Coroabă, Tax Partner, Leader of the Tax Services team for the financial sector, PwC Romania.

“This year, I would expect to see the number of companies coming to market to marginally decline, as investors continue to scrutinise investment opportunities and those that can wait, will wait. Having said that, I think 2016 proceeds will be bolstered by the continuing trend of mega deals -the too-big-to-miss-out sentiment - and that we will see a recovery towards the middle of the year. The effect on Europe of the expected election paralysis in the US market remains to be seen, as well as the impact of the fall on the Chinese stock-exchange”, added Diana Coroabă.

“In Romania, we’ve seen last year five new listings on the AeRo market segment, mostly small IT companies. However, the proceeds from these listings were much smaller than in 2014, when the state-owned Electrica power company was listed on the Bucharest Stock Exchange. It is clear that the Romanian capital market still needs the input of the state authorities if it is to attract major IPOs and to grow into the financial hub of South-Eastern Europe as one should expect, giving Romania’s economy size in the region. In this respect, it is much awaited the listing of Hidroelectrica, as well as other state owned companies, such as the Bucharest International Airport”, said Daniel Anghel, Partner, Tax and Legal Services, Public Sector Leader, PwC Romania.


Number of €1bn+ IPOs per year



“As the curtains closed on 2015, it was really the giant IPOs of Aena, ABN AMRO and Worldpay, all raising €3bn plus and with good after market performance, which made headlines. These larger IPOs will continue to be a dominant feature in 2016’s London IPO market, with Clydesdale Bank the first bigger listing of this year”, said Ana-Maria Butucaru, Director, Assurance Services for the Financial Sector, PwC Romania.

“Looking ahead, 2016 will feature companies demonstrating strong and predictable growth stories with more focus than ever before on the longer term outlook. The technology and financial sectors will be strongly evident, but the IPO market will have to overcome the adversity of rock bottom oil prices, increasing interest rates and continued exchange rate volatility”, concluded Ana-Maria Butucaru.

About the report:


• 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 January and 31 December 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:

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