European IPOs Gain Momentum Following Summer Slowdown
After a calm summer, the IPO market in Europe is regaining momentum. The Swedish real estate company Sveafastigheter is preparing to launch its IPO worth approximately $330.59 million, equivalent to 3.5 billion Swedish krona, and plans to go public in Stockholm by the end of this year. Additionally, Spanish energy and water services company Cox Energy aims to raise about €300 million, which is roughly $328 million.
In London, British sports nutrition company Applied Nutrition experienced a 7% increase in its share price on the opening day following its IPO worth £157.5 million ($204.39 million) at the beginning of October. However, not all planned IPOs proceeded; Spanish frozen baked goods company Europastry and fashion retailer Tendam withdrew their offers due to market instability.
Despite these setbacks, IPO activity in Europe has seen a significant increase. According to a study by PricewaterhouseCoopers, revenues from IPOs in the first half of 2024 are expected to reach €11.4 billion, representing an increase of more than four times compared to the previous year.
Several major IPOs have taken place in Europe this year. Spain's luxury beauty and fashion group PUIG raised €2.61 billion in May, and with additional allocation options, the total revenue reached €2.74 billion, making it the largest IPO in Europe since 2022.
Skincare company Galderma raised 2.3 billion Swiss francs ($2.7 billion) in its IPO in March, marking Switzerland's largest IPO since 2017. Private equity firm CVC Capital Partners also executed a significant IPO in April, raising €2.3 billion and increasing the company's valuation to approximately €14 billion.
Poland's Zabka Group executed the country's largest IPO since Allegro's offering in 2020 with its opening in Warsaw at the beginning of October. The supermarket chain reached a valuation of 21.5 billion zloty ($5.34 billion) and raised 6.45 billion zloty through its IPO.
Other notable IPOs include the return of German cosmetics retailer Douglas to the Frankfurt Stock Exchange with an €890 million offering in March. The IPO of Athens International Airport in January raised €785 million, becoming the largest IPO in Greece in the last 15 years.
German academic publisher Springer Nature and German tank gearbox manufacturer Renk raised up to €602 million and approximately €500 million in their IPOs conducted earlier this year, respectively.
French companies also stood out; optical component firm Exosens began trading on Euronext Paris in June by raising approximately €350 million, while software company Planisware executed the largest initial public offering in the French stock market over the last three years by raising about €278 million in April.