THE EUROPEAN IPO MARKET DECLINES SHARPLY AFTER BREXIT VOTE

BrexitThere was a sharp decline in both the number and total dollar amount raised in European IPOs after the June 23 Brexit vote.

This is in sharp contrast to the numbers between Feb. 20, when the Brexit vote was announced, and the actual vote itself in June. The number of IPOs grew steadily during that time, peaking at 35 in May. Not surprisingly, there was also an uptick in the dollar amount raised in June, likely a push to go public ahead of the Brexit vote.

2016 European IPOs

After only five companies going public in August, however, September showed signs of a tepid recovery, with 10 companies going public and raising $3,386.9 million.

Five Year Trends

Overall, the number of European IPOs has fallen significantly this year from 2014-15 highs. Issuers raised $70,409 million and $69,844 million in 2014 and 2015, respectively, but only $21,917 million in the first three quarters of this year.

Quarterly European IPOs

Similarly, the average deal size in the first three quarters of 2016 was $145 million, which is down considerably from the average of $268 million in 2015 and $257 million in 2014.

However, looking at a longer period, the totals from the first three quarters of 2016 have already surpassed the annual IPO count and dollar value for all of 2012.

For more on the latest in European IPOs, Bloomberg Law subscribers can access our European Quarterly IPO Market Update.