IPO Watch Europe Q1 2018 - PwC Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1...

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Transcript of IPO Watch Europe Q1 2018 - PwC Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1...

  • IPO Watch Europe Q1 2018

    www.pwc.co.uk/ipowatch

    €12.5bn raised in Q1 2018

    (Q1 2017: €4.6bn, 172% increase)

    67 IPOs in Q1 2018 across Europe

    (Q1 2017: 54 IPOs, 24% increase)

    €260m average offering value in Q1 2018, an

    increase of 31% compared to €199m in

    Q1 2017

  • 2IPO Watch Europe Q1 2018 | Source: Dealogic and Stock Exchanges

  • 3IPO Watch Europe Q1 2018 |

    European IPO trends 4

    Market volatility 6

    Pricing of top 5 IPOs 7

    European PE trends 7

    The sector story 8

    UK focus

    Overview 9

    Relative performance of UK IPOs 10

    Global perspective 11

    Appendix 12

    Contacts 14

    Contents

    Outlook for 2018

    “The first quarter of 2018 has seen increased volatility and significant corrections to global indices. Europe’s IPO markets, however, have proved resilient with investors eager to find value and ready to engage in early conversations with companies with compelling equity stories and solid fundamentals.

    Despite uncertainty around the ongoing Brexit negotiations, a potential trade war between the US and China and rumoured rate rises, Europe’s IPO market remains open.”

    Mark Hughes Partner, UK Capital Markets Leader at PwC

  • 4IPO Watch Europe Q1 2018 |

    European IPO trends The Deutsche Börse is the most active in terms of value, bolstered by Siemens Healthineers AG, their largest IPO since innogy SE in October 2016

    Figure 1: Top 3 stock exchanges in Europe in Q1 2018 (by offering value)

    Source: Dealogic and Stock Exchanges

  • 5IPO Watch Europe Q1 2018 |

    European IPO trends Q1 2018 European IPO values have more than doubled compared to Q1 2017, boosted by two mega-IPOs*

    Figure 2: European IPO activity since 2009

    Figure 3: Quarterly European IPO activity since 2014

    Note: Excludes IPOs on Borsa Istanbul, Zagreb Stock Exchange and Bucharest Stock Exchange pre 2011

    Source: Dealogic and Stock Exchanges

    0.0 4.7 3.5 2.6 3.5 12.3 18.0 3.7 4.6 12.5

    16

    77

    102

    61

    45

    68

    83

    50 54

    67

    -

    20

    40

    60

    80

    100

    120

    -

    5

    10

    15

    20

    Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018

    V o

    lu m

    e o

    f IP

    O s

    V a lu

    e o

    f IP

    O s €

    b n

    value €bn IPOs

    *Mega-IPOs are those raising in excess of €1bn

    12.3 23.5 7.2 9.6 18.0 15.7 4.9 23.3 3.7 11.8 3.9 10.0 4.6 16.1 8.3 16.1 12.5

    68

    146

    76

    86

    83

    124

    53

    105

    50

    95

    52

    71

    54

    103

    75

    116

    67

    -

    20

    40

    60

    80

    100

    120

    140

    160

    -

    5

    10

    15

    20

    25

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

    V o

    lu m

    e o

    f IP

    O s

    V a lu

    e o

    f IP

    O s €

    b n

    Value €bn IPOs

    2014 2015 2016 2017 2018

  • 6IPO Watch Europe Q1 2018 |

    0

    2

    4

    6

    8

    10

    12

    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    -5%

    0%

    5%

    10%

    15%

    20%

    % c

    h a

    n g

    e s

    in c

    e 1

    J a n

    2 0 1 7

    DAX 30

    FTSE 100

    CAC 40

    IBEX 35

    Market volatility Volatility makes a come back in Q1 2018 after the historic lows of 2017

    Figure 4: Volatility tracked against European IPO values

    Source: Thomson Reuters as at 29 March 2018

    Figure 5: Historical performance of major European market indices since January 2017

    Triggering

    of Article 50

    2017 2018

    2017

    M o

    n e

    y r

    a is

    e d

    € b

    n

    V S

    T O

    X X

    5 0 i

    n d

    e x

    €1bn+ IPOs

    of Allied Irish

    Bank plc and

    ALD SA

    €1bn+ IPO

    of Galenica

    Sante AG

    UK General

    election

    €1bn+ IPO of

    Landis & Gyr

    Holding AG

    French Presidential

    election

    €1bn+ IPO of

    BAWAG

    Group AG

    and J2

    Acquisition

    €1bn+ IPO of

    Siemens

    Healthineers AG

    and DWS Group

    GmbH &Co KGaA

    2018

    On-going Article 50

    negotiations between

    the UK and EU. North

    Korea and US tension

    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

    Fears of rising US bond yields and

    higher inflation saw $4tn wiped off

    the value of shares around the world

    after a correction of the US markets

  • 7IPO Watch Europe Q1 2018 |

    Pricing of top 5 IPOs Top 5 IPOs priced at the lower end of the range

    Figure 6: Top 5 European IPOs in Q1 2018

    Figure 7: Quarterly value and volume of European PE backed IPOs since 2012

    European PE trends The volume and value of PE backed IPOs remains subdued with a number of deals opting for private sale processes

    Source: Dealogic and Stock Exchanges

    1 1 5 10 2 1 1

    2

    4

    15

    20

    6 7

    10

    -

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    -

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    Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018

    V o

    lu m

    e s o

    f IP

    O s

    V a lu

    e o

    f IP

    O s €

    b n

    Value €bn IPOs

    Siemens

    Healthineers AG

    DWS Group

    GmbH & Co

    KGaA

    Elkem ASA Metrovacesa

    SA SPAXS SpA

    Exchange Deutsche Börse Deutsche Börse Oslo BME Borsa Italiana

    IPO date 16-Mar 23-Mar 22-Mar 06-Feb 01-Feb

    Money raised (€m) 3,652 1,300 777 646 600

    Price range €26.00 – €31.00 €30.00 - €36.00 NKR29.00 -

    NKR35.00 €16.50 - €17.00 €10.00

    Offer price €28.00 €32.50 NKR29.00 €16.50 €10.00

  • 8IPO Watch Europe Q1 2018 |

    The sector story Financials and Health Care represent the largest sectors in the quarter supported by the mega-IPOs* of Siemens Healthineers AG and DWS Group GmbH & Co KGaA

    Figure 8: European IPO values by sector

    Health Care

    7 IPOs raised

    €4.5bn

    Largest IPO:

    Siemens Healthineers AG

    €3.7bn

    Basic Materials

    2 IPOs raised

    €0.8bn

    Largest IPO:

    Elkem ASA

    €0.8bn

    Financials

    28 IPOs raised

    €4.9bn

    Largest IPO:

    DWS Group GmbH & Co

    KGaA

    €1.3bn

    Source: Dealogic and Stock Exchanges

    Q1 2017

    V alue (€m)

    Q1 2017

    V olume

    Q2 2017

    V alue (€m)

    Q2 2017

    V olume

    Q3 2017

    V alue (€m)

    Q3 2017

    V olume

    Q4 2017

    V alue (€m)

    Q4 2017

    V olume

    Q1 2018

    V alue (€m)

    Q1 2018

    V olume

    Financials 2,700 24 5,217 23 3,017 32 5,890 30 4,879 28

    Health Care 514 10 435 14 59 6 1,286 13 4,478 7

    Basic Materials 134 3 8 2 497 3 1,300 6 779 2

    Consumer Services 4 1 3,881 14 427 6 714 14 632 8

    Utilities - 1 - - - 1 501 2 463 2

    Consumer Goods 152 3 1,464 9 236 3 4,815 13 436 6

    Oil & Gas 61 3 227 2 3 1 27 2 376 2

    Technology 21 4 1,234 14 543 12 322 22 331 10