A surge in initial public offerings (IPOs) backed by private equity (PE) firms during March 2013 may signal a recovery in the European IPO market, according to PwC.
PwC’s IPO Watch Europe Q1 2013 report found that activity for the quarter rose by almost 40% from €2.3bn to €3.2bn, compared with the same period last year. This increase was driven by German property company LEG Immobilien, which raised €1.2bn on the Deutsche Börse in the largest IPO of the year so far, and a number of floats of domestic and PE-backed companies in London.
The debuts of estate agency Countrywide and insurer Esure in London, which were backed by PE firms, raised more than €0.9bn in March alone and were two of the top five European IPOs of the quarter. Overall, the PE-backed sector accounted for 47% of total proceeds in London and 28% of proceeds in Europe.
Mark Hughes, capital markets partner at PwC, said: “The first quarter of 2013 has been encouraging. If current market sentiment persists, London – and potentially the rest of Europe – appears set for a good year, with a large pipeline of businesses sizing up the market. We expect to see activity across a range of sectors throughout the year, notably banking, insurance, real estate and entertainment.”
Sally Percy is editor of The Treasurer