about us | newsletter | contact | archive | members area
Nicolae Ghibu, Certsign
Regulations will come gradually and will cover all areas»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

PwC: 2013 European IPO proceeds rocket by 135 percent to EUR 26.5billion; can the momentum be maintained in 2014?

The European IPO market continued to build momentum throughout 2013 – finishing the year with a bang. The final quarter, which saw more than 100 companies successfully float, accounted for more than half of the total proceeds raised in the whole year.

2014-04-09 18:30:56

Average European deal size more than doubled - total money raised through IPOs in 2013 increased by EUR 15.3bn (135percent ) to EUR 26.5bn, despite the total number of IPOs decreasing by 3percent to 279 from 288.

London remained the dominant market in Europe by total number and total money raised. IPO values increased by EUR 9.3bn (180percent ) year-on-year to EUR 14.4bn driven by a 41percent increase in the number of IPOs from 73 to 103 and the presence of bigger deals like Royal Mail and Merlin Entertainments.

PwC expects to see many retail and consumer companies coming to the market in the first half of 2014 off the back of strong Christmas trading results. Evidence of this activity has already been seen with the recent London IPOs of Lenta, AO World, Poundland, Pets at Home and Boohoo.com.
"The IPO renaissance we have all been hoping for has arrived. As activity increases- so will the competition. Exchanges will continue to fight to attract IPO candidates and the Bucharest Stock Exchange must demonstrate that it can be a viable listing venue for raising capital in conditions similar to those offered in Warsaw, Vienna or Prague", stated Sergiu Gherasim, Director, Capital Markets Leader, PwC Romania.

"There is a sizeable pipeline of floats on the horizon in 2014- in London and other European markets. Building on 2013's success, we are already seeing a spate of PE backed companies well advanced in their preparation to completing an IPO in the first half of 2014", added Sergiu Gherasim.
PwC also believes the technology sector will continue to provide a number of IPO candidates in 2014 –although the US markets may still be the natural choice for tech ventures, the newly launched High Growth Segment of the London Stock Exchange may provide a viable alternative for those technology companies with a greater affinity or more natural fit with the UK market and investors.
Euronext IPOs raised EUR 3.0bn, a significant increase of 188percent year-on-year. The rise was driven by an increase in major PE-exits and privatisations like bpost, Numericable, CTTCorreios de Portugal and Tarkett.

Deutsche Börse saw an increase in proceeds raised, despite a falling number of IPOs from 25 in 2012 to 9 in 2013. The two largest German IPOs, LEG Immobilien and Deutsche Annington are both real estate companies and collectively raised more than two thirds of total proceeds raised in Germany.

Borsa Italiana had a strong year, reaching overall proceeds of EUR 1.3bn, compared with EUR 0.2bn raised in 2012. The number of IPOs in Italy more than quadrupled from 4 in 2012 to 18 in 2013. The two largest 2013 IPOs on Borsa Italiana, Moncler and Moleskine were both PE-backed and raised EUR 681m and EUR 269m respectively.

Warsaw experienced an increase in average deal value from EUR 7m to EUR 21m, because the total proceeds increased to EUR 1.1bn and the number of deals in Poland almost halved. The proceeds are mainly driven by the privatisations of Energa (EUR 515m) and PKP Cargo (EUR 339m), the two largest IPOs in Warsaw last year.

"The ending of 2013 marked a new phenomenon on the map of European IPOs and vibrant markets. The fact that Romanian capital market successfully entered the stage, presenting its capabilities to international and domestic investors, is another good sign of positive evolution for Central and Eastern Europe, which wants to become a more meaningful investment territory. A lot remains to be achieved in that regard, but even now the Central and Eastern Europe region is more colourful and abundant in opportunities than it used to be", stated Ludwik Sobolewski, CEO of the Bucharest Stock Exchange.

"The success of the Romgaz dual listing in Q4 2013 drew the attention of international investors to the potential of Romanian economy and the role the Bucharest Stock Exchange may play in Central and Eastern Europe. Under the wider privatization commitments that Romania has agreed with the International Monetary Fund, the Romanian government announced for 2014 the IPOs of Electrica, Complex Energetic Oltenia and Hidroelectrica, once the situation of the company is settled after it re-entered insolvency, all operating in the energy sector. Recently the Romanian government announced its intention to also list the Constanţa harbour. The Romanian IPO pipeline going into 2014 is encouraging," said Sergiu Gherasim.

"Even though 2013 proceeds are a third of those raised in 2007 at the height of the market, we do believe that we are finally moving into a period of renewed and sustained growth. National companies targeted for privatisation include banks and companies in the energy, transport infrastructure, health and postal service sectors. We believe that 2014 will see further privatisations of this kind in Europe. IPOs will certainly be an option to consider", added Sergiu Gherasim.

Private equity focus

The back end of 2013 saw many private equity houses finally cashing in on long-term investments by completing IPOs. PE-backed IPOs have outperformed the market with the top five PE-backed IPOs in UK and in Europe either performing in line with market or in most cases outperforming the market. Notably only one of the twenty worst performing stocks in 2013 was previously PE-backed, while eight of the top twenty best performing stocks had been previously PE backed.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  4769 Views
Daily Info
Smart city is not a fad, it's a necessity

In June 2018, the ranking of the most "smart" cities in the world was published. In other words, the most advanced cities in terms of human capital, social cohesion, the econo...

Ondrej Safar, CEZ Group: "Romania can become a hub for international smart solutions providers"

"We are already in the digital age, so the upward trend of implementing smart solutions is inevitable in all areas," he tells The Diplomat-Bucharest. "Especially in terms of u...

Telekom Romania, a strong supporter of Smart City development in Romania

Just like many other countries in the world Romania is now facing an unprecedented growth of the urban population, which can be both beneficial and detrimental for the society...

In the industrial era, the fight was for finite material resources. Not anymore

Now organizations fight and develop themselves for and around their talent. In a nutshell, getting ahead in today's business world is all about attracting and inspiring an e...

Richard Sareczky, Mol Limo: "We look at expansion locations across CEE including Romania"

Consumer mobility behaviour is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-p...

 
 
   
advertising

advertising

advertising

More on News
President Iohannis urges Romanians to be more united, stay involved in modernizing Romania

Romania's President Klaus Iohannis urged Romanians in France to be more united and stay involved as much as they are now in helping modernise Romania.

4 Comments

FDI in Romania rises 10 per cent after ten months in 2018

Non-residents' direct investment in Romania (net FDI) totaled 4.56 billion Euro in January-October 2018, around 10 per cent more compared to the same period of 2017, Romani...

Catrina, MCSI: Romania is ready to roll up its sleeves and work during the presidency of the EU Council

Romania is ready to roll up its sleeves and work during the presidency of the Council of the European Union (EU), said Maria Manuela Catrina, State Secretary at the Ministr...

5 Comments

Two billion youth risk of being left behind in the Fourth Industrial Revolution workforce, says Deloitte

Almost two billion youth worldwide risk of being left behind in the Fourth Industrial Revolution (Industry 4.0) workforce, which is changing at an increasingly rapid pace a...

2 Comments

ArcelorMittal receives binding offer for European assets from Liberty

British-owned Liberty announced a conditional agreement to buy four European steel plants, employing more than 12,500 people.

2 Comments

Revolut gets European banking license

Fintech startup Revolut is now officially a bank. While the startup initially expected to get its European banking license during the first half of 2018, the company has fi...

2 Comments

The Romanian labour market needs a well-thought approach, says FIC

The Foreign Investors Council (FIC) has signaled in the past 2-3 years that its members are anticipating increasing strains on the Romanian labour market because starting w...

2 Comments