The proceeds raised from European IPOs in the first half of 2024 have more than quadrupled compared to the same period last year, representing over 25% of the total proceeds raised globally, continuing the positive trajectory of the IPO market this year, according to figures from PwC’s latest IPO Watch EMEA.
Q2 2024 saw 23 IPOs in Europe raising €6.6bn, an increase of €5.3bn compared to the same period last year. This was also an increase of €1.8bn compared to the Q1 2024 total of €4.8bn and bringing the total H1 IPO proceeds in Europe to €11.4bn, higher than H1 2023 (€2.5bn) and H1 2022 (€5.1bn) combined.
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Some of the most notable European listings in Q2 include the €2.6bn IPO of fashion and fragrance company Puig Brands [BME:PUIG] on the Spanish Stock Exchange, the €2bn IPO of private equity group CVC Capital [EURONEXT:CVC] on the Euronext Amsterdam and the €241m IPO of cloud technology firm Planisware [EURONEXT:PLNW] on the Euronext Paris.
The London IPO market
IPO activity in London for H1 2024 saw £0.5bn proceeds raised which included the computer maker Raspberry PI [LON:RPI] raising £166m in a boost to the London market. A strong pipeline of potential IPOs also remains.
The UK saw the largest secondary market transactions globally with the National Grid LON:NG. and Haleon LON:HLN further offers of £7bn and £2.4bn respectively. In July new listing rules were published by the FCA as part of the overall package of planned reforms aimed at reinvigorating the IPO market in London.
The Middle East and African IPO markets
Despite the majority of major market indices in the Middle East trending downwards so far this year there have been several significant IPOs, particularly in Saudi Arabia. The IPO of Dr Soliman Fakeeh Hospital [TADAWUL:4017] for $763m is the largest IPO in the Middle East this year to date and was one of the top five IPOs in Q2 2024. However, aftermarket performance of the five largest IPOs in H1 in the Middle East was mixed.
In Africa, the IPO of WeBuyCars [JSE:WBC] marked the first IPO to the Johannesburg Stock Exchange since Q2 2023 – a promising sign for the future IPO prospects in South Africa. With notable contenders in the near-term pipeline, improved political stability and an expected interest rate cut there is tempered optimism for further successful IPOs in the region in H2 2024 and 2025.
The Global IPO market
Globally, H1 proceeds are down 16% compared to the same period with a sharp contrast between the performance of Western markets such as Europe (where proceeds more than quadrupled) and the United States (where proceeds nearly doubled) as compared to Eastern markets which have seen a 63% reduction in IPO proceeds, primarily due to the subdued performance of Chinese markets where H1 IPO proceeds were down over 80% compared to last year.
The US as a region raised 36% ($17.6bn) of the total global proceeds – the highest of any region, followed closely by EMEA with 35% with proceeds increasing by $7.6bn (78%) to $17.3bn in H1 2024.
Out of the top five global IPOs, three were in EMEA – Puig Brands, CVC Capital and Dr Soliman Fakeeh Hospital – all raising in excess of $2bn and trading in positive territory since listing. The remaining two were listed on the New York Stock Exchange – Viking Holdings [NYSE:VIK] ($1.5bn) and UL Solutions [NYSE:ULS] ($946m).
Recent and impending elections across the globe, including in the UK, US, France, India and South Africa are informing the decision making and timing around prospective IPOs in the pipeline. IPO candidates and market participants will hope that the conclusion of these will bring stability and support IPO activity going into 2025.
Vhernie Manickavasagar, Capital Markets Partner at PwC UK, added: “After a two-year pause, the European IPO market has seen a resurgence in the first half of the year. Private equity-backed IPOs have played a prominent role in this recovery, with over half of the top 10 IPOs being PE backed.”
