European IPOs Broke Records in 2017

European Priced

2017 IPO Numbers Are Highest in Five Years; Deal Size is Up

Three-hundred and twelve IPOs priced in 2017, the highest number in the last five years and an increase of 37 percent compared to 2016. The number of IPOs in 2017 is also the highest since 464 IPOs priced in 2007. The 312 priced IPOs of 2017 raised $58.26 billion, an increase of 72 percent from $33.82 billion raised by 228 IPOs in 2016.

The average deal size in 2017 also increased. It was $187 million, a 26 percent jump from $148 million in 2016, indicating a move towards larger deals. Out of 312 IPOs that priced in 2017, 207 or 66 percent were in the $1 – $100 million range by offer size, 75 or 24 percent were in the $100 – $500 million range, 18 or 6 percent were in the $500 million – $1 billion range and 12 or 4 percent were in the $1 – $10 billion range. The majority of the IPOs were in the two lower ranges, as in the previous four years, but the percentage of IPOs in the top three ranges increased significantly, also indicating a trend towards larger deals.

Record Number of Deals in the IPO Pipeline

European Announced

The number of announced IPOs in 2017 was also the highest in five years and increased by 36 percent compared to 2016. 329 IPOs were announced in 2017 and were set to raise $62.88 billion, an increase of 76 percent from $35.79 billion projected to be raised by 242 IPOs in 2016.

The average announced deal size in 2017 increased to $191 million from $148 million in 2016, but was still significantly lower than the average deal size in 2015 ($267 million) and 2014 ($266 million). The announced 2017 IPOs were also projected to raise less than the highs of $80.88 billion and $80.45 billion projected in 2015 and 2014, respectively.  

Big Players

The three largest announced and priced IPOs of 2017 were by Allied Irish Banks PLC (announced on May 30, priced on June 23 and raised $3.84 billion), Pirelli & C SpA (announced on April 28, priced on September 29 and raised $2.61 billion) and Landis+Gyr Group AG (announced on July 3, priced on July 21 and raised $2.38 billion).

Technology Sector Outperformed Consumer, Cyclical Sector

Europe Industry Sectors

Not surprisingly, the Financial sector outperformed all other sectors in 2017 with 68 IPOs raising $20.9 billion. As in the previous three years, in 2017, the Financial and Consumer, Non-Cyclical sectors outperformed the other industry sectors, but the Technology sector replaced the Consumer, Cyclical sector among the top three sectors by number of IPOs (43 IPOs).

The largest IPOs in each of the three top sectors in 2017 were by Allied Irish Banks PLC (Financial sector, priced on June 23 and raised $3.837 billion), ALD SA (Consumer, Non-Cyclical sector, priced on September 28 and raised $1.274 billion) and Rovio Entertainment Oyj (Technology sector, priced on May 12 and raised $519.96 million).

SPAC IPOs Are Off the Charts

Europe SPACS

SPAC IPOs saw a sharp spike in deal count and dollar amount raised in 2017. Nineteen SPAC IPOs priced in 2017 and raised a total of $3.98 billion, surpassing the peak of dollar amount raised by three SPAC IPOs in 2011 ($3.94 billion).

The three largest SPAC IPOs of 2017 were by J2 Acquisition Ltd (priced on September 25 and raised $1.21 billion), Space4 SpA (priced on November 27 and raised $595 million) and Landscape Acquisition Holdings (priced on November 15 and raised $484 million).

In 2017, SPAC IPOs represented 6 percent of the total IPO market by deal count and 7 percent of the total IPO market by dollar amount raised.

Law Firm Performance

In 2017, Gowling WLG Canada led the Financial sector with nine IPOs that raised $1.2 billion, but Herbert Smith Freehills participated in seven IPOs that totaled $9.7 billion. Baker & McKenzie led the Consumer, Non-Cyclical sector with six smaller IPOs, raising a total of $421 million, but White & Case raised $1.7 billion with five IPOs. Linklaters led the Industrial sector with five IPOs, White & Case the Consumer, Cyclical sector with eight IPOs and Thommessen Krefting Greve Lund the Technology sector with three IPOs.

Linklaters and McCann Fitzgerald represented the issuer and A&L Goodbody and Herbert Smith Freehills advised the underwriters in the largest IPO of 2017, the Allied Irish Banks PLC IPO, which priced on June 23 and raised $3.84 billion.

With additional data analysis by Hussein Kohy.

For more information on U.S. and European IPO performance, Bloomberg Law subscribers can access the Quarterly IPO Market Update - U.S. and the Quarterly IPO Market Update - Europe in the Securities Practice Center