European IPOs Dropped Significantly in 2016

2016 European Announced IPOs

The number of Europe’s 236 announced initial public offerings last year was down by 22 percent from 2015 (301 announced IPOs) and 2014 (302 announced IPOs), according to Bloomberg Law data.

Similarly, at $35.71 billion, the announced deal value for 2016 IPOs was the lowest since 2012, when the announced deal value was $18.05 billion.  Deal value in 2016 dropped by 56 percent from 2015 ($80.56 billion) and 2014 ($80.41 billion), not promising an uptick in European IPOs in 2017.

2016 European IPOs by Month

The top two months by deal count for European IPOs last year were May (35) and June (29), ahead of the June 23 Brexit vote.  Not surprisingly, July (14) and August (6) saw a steep drop off after the U.K. vote to leave the European Union.  In fact, August was the slowest month all year, with only 6 IPOs raising a combined $62.01 million.

2016 Monthly IPOs Europe

The market recovered in October, with 26 IPOs, raising a combined $9.07 billion.

The London Stock Exchange was the most popular listing venue in 2016, with 63 listings.  The largest listing on that exchange was in October—the ConvaTec Group, with $2 billion raised.

The largest IPO of the year was also in October—Innogy SE IPO ($5.2 billion raised).  Innogy listed in Frankfurt on the Xetra electronic trading venue.  The second and third largest IPOs of the year—DONG Energy A/S ($3 billion raised) and Nets A/S ($2.4 billion raised)—were both listed on the Copenhagen Stock Exchange.

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