Initial public offerings (IPOs) in Europe have had their best third quarter for three years, according to PwC.
In its latest IPO Watch statement, the auditor noted that the region’s IPO proceeds over the course of Q3 2017 more than doubled the haul achieved in the same period of last year.
While proceeds in Q3 2016 totalled €3.8bn, takings during the equivalent slice of this year surged to €8.2bn.
London was the most active European exchange, hosting 36% of the region’s IPOs – compared to less than half that in Q3 2016 – and accounting for 33% of all proceeds raised.
In the same period of last year, it managed just 8%.
The city also maintained its strength as an overseas IPO venue, with Russian gold manufacturer Polyus raising €551m in July.
That continued the narrative established in Q2, during which London hosted Dubai-based ADES International’s offering, together with IPOs from Turkish firms DP Eurasia and Global Ports Holding.
Polyus’s choice of venue has underlined the UK capital’s leading status in the region for cross-border IPOs.
However, Q3’s largest IPO overall was hosted in Switzerland, with smart-meter maker Landis & Gyr Holding AG raising €2.1bn: the largest Swiss IPO jackpot for 11 years.
Europe’s second-largest IPO of the quarter was also a record-breaker. Polish telecoms company Play Communications SA’s €1bn haul from the Warsaw Stock Exchange was not just the largest European telecoms IPO since 2012 – it was Poland’s largest-ever IPO by a private company, too.
PwC UK capital markets director Lucy Tarleton said: “London bounced back from the disappointing performance of Q3 2016, which was affected by the uncertainty and volatility arising from the UK’s EU referendum outcome.
“Q3 2017 was London’s most active third quarter by volume since 2011, when 29 IPOs raised €1.1bn.”
She added: “Looking ahead, the pipeline for London IPOs – which includes a number of international companies – looks promising. If favourable conditions continue, Q4 should deliver a strong end to the year.”
Tarleton’s colleague, PwC UK capital markets leader Mark Hughes, added: “We have seen European IPOs gathering momentum this year with money raised to date already above the €27.9bn raised in the whole of 2016.
“The year is set to finish on a high note with a number of high-profile large IPOs set to launch in the coming weeks.”
However, he noted, “with a number of companies undertaking dual-track processes, inevitably some of these companies may opt for a private sale process, given the attractive valuations on offer.”