European IPOs Are Raising More Cash


EU Priced 2017Q3

2017 IPO Numbers Are on Track to Exceed 2016; Deal Size Is Up

Two-hundred and fifteen IPOs priced in the first three quarters of 2017 and raised $42.15 billion, an increase of 24.63 percent from $33.82 billion raised by 228 IPOs in all of 2016.

The number of IPOs priced in the first three quarters of 2017 (215 IPOs) was still below the full year 2016 number (228 IPOs) and lagged significantly behind the highs of 266 IPOs ($69.87 billion raised) in 2015 and 275 IPOs ($70.46 billion raised) in 2014. However, the average deal size in the first three quarters of 2017 was $196 million and jumped by 32.43 percent from $148 million in 2016.

Out of 215 IPOs that priced in the first three quarters of 2017, 136 or 63.26 percent were in the $1 – $100 million range by offer size, a smaller percentage than in 2016. Compared with 2016, a larger percentage of IPOs in the first three quarters of 2017 were in the upper three offer size ranges, indicating a trend towards larger deals this year. Sixty-one IPOs or 28.37 percent were in the $100 – $500 million range, 10, or 4.65 percent, were in the $500 million – $1 billion range and 8, or 3.72 percent, were in the $1 – $10 billion range.

Big Players

The third quarter of 2017 saw the pricings of the second and third largest IPOs of the year. These deals were completed by Pirelli & C SpA (priced on Sept. 29 and raised $2.48 billion) and Landis+Gyr Group AG (priced on July 21 and raised $2.38 billion). The largest IPO of the year was by Allied Irish Banks PLC (priced on June 23 and raised $3.84 billion). 

The IPO Pipeline Is Hot

EU Announced 2017Q3

The announced deal value jumped by 21.94 percent from $35.78 billion in full year 2016 to $43.63 billion in the first three quarters of 2017. Two-hundred and twenty-nine IPOs were announced in the first three quarters of 2017.

The average announced deal size in the first three quarters of 2017 increased to $191 million from $148 million in 2016, an increase of 29 percent. It was still significantly lower than the average deal size in 2015 ($267 million) and 2014 ($266 million).

The three largest announced IPOs of the first three quarters of 2017 were by: Pirelli & C SpA (announced on April 28, priced on Sept. 29 and raised $2.48 billion), Landis+Gyr Group AG (announced on July 3, priced on July 21 and raised $2.38 billion), and J2 Acquisition Ltd (announced on Sept. 22, priced on Sept. 25 and raised $1.21 billion). 

Industrial Sector Outperformed Consumer, Cyclical Sector

Industry Europe 2017Q3

The Financial sector outperformed all other sectors in the first three quarters of 2017 with 50 IPOs raising $16.6 billion, but the Industrial sector made it into top three for the first time in four years.

As in the previous three years, the Financial and Consumer, Non-Cyclical sectors outperformed the other industry sectors in the first three quarters of 2017.

The largest IPOs in each of the three top sectors in the first three quarters of 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 June 15 and raised $1.274 billion) and Koninklijke Volkerwessels NV (Industrial sector, priced on May 12 and raised $694.19 million).

Law Firm Performance

In the first three quarters of 2017 White & Case led the Consumer, Cyclical sector with five IPOs, the Consumer, Non-Cyclical sector with five IPOs and the Industrial sector with three IPOs. Herbert Smith Freehills led the Financial sector with eight IPOs that raised $9.84 billion, and McCann FitzGerald participated in four IPOs in the same sector that raised $8.28 billion.

Freshfields Bruckhaus Deringer and White & Case led the Technology sector with two IPOs each, including the largest IPO in that sector by Rovio Entertainment Oy, which priced on Sept. 28 and raised $581.23 million. Linklaters and McCann Fitzgerald represented the issuer and A&L Goodbody and Herbert Smith Freehills advised the underwriters in the largest IPO of the first three quarters of 2017, the Allied Irish Banks PLC IPO, which priced on June 23 and raised $3.84 billion.

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.