IPO Watch Europe Q2 2018 - PwC … · IPO Watch Europe Q2 2018 | 3 European IPO trends 4 Market...

IPO Watch Europe Q2 2018

www.pwc.co.uk/ipowatch

€9.3bn raised in Q2 2018

(Q2 2017: €16.2bn, 43% decrease)

99 IPOsin Q2 2018 across Europe

(Q2 2017 106 IPOs, 7% decrease)

€94maverage offering value in Q2 2018, a

decrease of 37% compared to €149m in

Q2 2017

2IPO Watch Europe Q2 2018 | Source: Dealogic and Stock Exchanges

3IPO Watch Europe Q2 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 13

Contacts 15

Contents

Outlook“The first half of the year ended with an increase in IPO values of 5% on H1 2017 largely due to the mega-IPOs across Europe in the first quarter of the year.

With the potential trade war between the US and the rest of the world, as well as the ongoing Brexit negotiations as we move into the second half of the year, volatility could well creep back into the markets, potentially unsettling the IPO markets across Europe. Despite a more subdued second quarter, and the current economic and political outlook, the market is open and deals are being done.

Pricing will likely remain a challenge and investors are increasingly selective. That said, we expect to see the volume of IPO activity picking up again in the second half of the year.”

Mark HughesPartner, UK Capital Markets Leader at PwC


European IPO trendsLondon is the most active exchange by volume and value this quarter, bolstered by five Technology listings

Figure 1: Top 3 stock exchanges in Europe in Q2 2018 (by offering value)

Source: Dealogic and Stock Exchanges


European IPO trendsEuropean IPO values ended up 5% for the first half of 2018 compared to H1 2017, despite a 43% decrease in European IPO values in Q2 2018 compared to Q2 2017

Figure 2: European H1 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


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

0.5 13.7 18.0 4.8 9.5 35.8 33.7 15.5 20.8 21.8

39

166

251

154

121

214 207

152 161 168

-

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100

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250

300

-

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H1 2009 H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 H1 2018

Vo

lum

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f IP

Os

Va

lue

of

IPO

s €

bn

Value €bn IPOs

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 16.2 8.3 16.1 12.5 9.3

68

146

76 86 83

124

53

105

57

95

52

75

55

106

75

120

69

99

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20

40

60

80

100

120

140

160

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10

15

20

25

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

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Val

ue

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POs

€bn

Value €bn IPOs

2014 2015 2016 2017 2018


0

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12

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

0

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-5%

0%

5%

10%

15%

20%

% c

ha

ng

e s

inc

e 1

Jan

2017

DAX 30

FTSE 100

CAC 40

IBEX 35

Market volatilityAlthough volatility is significantly down from its peak in February 2018, it is still above the levels seen throughout 2017

Figure 4: Volatility tracked against European IPO values

Source: Thomson Reuters as at 29 June 2018

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

Triggering

of Article 50

2017 2018

2017

Mo

ne

y r

ais

ed

€b

n

VS

TO

XX

50 i

nd

ex

€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 Apr May Jun

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

€1bn+ IPO

of CEVA

Logistics

AG


Pricing of top 5 IPOsOnly one of the top five IPOs priced at the top end of the range

Figure 6: Top 5 European IPOs in Q2 2018

Figure 7: Quarterly value and volume of European PE backed IPOs since 2014

European PE trendsPE backed IPO activity has remained steady since 2014


CEVA Logistics AG Adyen BV Avast Plc Vivo Energy Plc Kojamo Plc

Exchange SIX Swiss

Exchange

Euronext -

Amsterdam London London

Nasdaq Nordic -

Helsinki

IPO date 04-May 13-Jun 10-May 04-May 15-Jun

Money raised (€m) 1,061 947 788 684 483

Price range CHF27.50 –

CHF52.50€220.00 - €240.00 £2.50 - £3.20 £1.55 - £1.80 €8.50 - €10.00

Offer price CHF27.50 €240.00 £2.50 £1.65 €8.50

5.5 14.5 1.8 2.0 9.9 5.7 1.8 8.9 1.7 6.9 2.7 3.2 1.5 3.4 1.1 7.1 1.3 4.1

15

40

7

11

20 18

6

18

6

20

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9 7

18

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20

10 8

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

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s €

bn

Value €bn IPOs

2014 2015 2016 2017 2018


The sector storyFinancials continued to be the largest sector accounting for 37% of H1 values

Figure 8: European IPO values by sector

Health Care

15 IPOs raised

€4.7bn in H1 2018

Largest IPO:

Siemens Healthineers

AG

Q1

Technology

36 IPOs raised

€2.4bn in H1 2018

Largest IPO:

Avast Plc

Q2

Financials

56 IPOs raised

€8.0bn in H1 2018

Largest IPO:

DWS Group GmbH &

Co KGaA

Q1


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

By offering value €m Q1 2018 Q2 2018 H1 2018 H1 2017 Variance vs H1 2017

Financials 4,879 3,160 8,039 7,917 122

Health Care 4,478 246 4,724 949 3,775

Technology 331 2,029 2,360 1,255 1,105

Industrials 106 2,050 2,156 4,381 (2,225)

Consumer Services 632 1,439 2,071 4,034 (1,963)

Basic Materials 779 - 779 142 637

Consumer Goods 436 220 656 1,616 (960)

Utilities 463 18 481 - 481

Oil & Gas 376 77 453 288 165

Telecommunications - 109 109 204 (95)

Total 12,480 9,348 21,828 20,786 1,042


UK focus – overviewStrong Q2 in London boosted by Technology listings

Figure 9: UK IPO trends (by offering value) Figure 10: UK IPO trends (by volume)

Figure 11: Top 5 UK IPOs in Q2 2018

Note: Ranking in £ sterling may be different from ranking in Euros due to exchange rate

Figure 12: UK IPO value by sector

£2.5bn£3.6bn £0.9bn

Q2‘18

Q2‘15

Q2‘16

£2.0bn

Q2‘17

2528 21

Q2‘18

Q2‘15

Q2‘16

24

Q2‘17


Issuer Value (£m) Sector Market PE backed

Avast Plc 692 Technology Main Yes

Vivo Energy Plc 603 Consumer Services Main Yes

Quilter Plc 185 Financials Main No

Codemasters Group Holdings Plc 239 Technology AIM No

Urban Exposure Plc 150 Financials AIM No

18 16 5 22 9 7 3 9 15 13 12 15 9 9

9 12

4

6

914

6

10

511

15

17

7

16

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25

30

35

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

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Os

Main AIM

2015 2016 2017 2018

3.6 3.3 0.5 4.9 1.7 0.3 0.2 2.4 1.7 1.4 1.7 4.4 1.1 1.7

0.10.3

0.0

0.1

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0.1 0.6 0.7

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Valu

e o

f IP

Os £

bn

Main AIM

2015 2016 2017 2018

By offering value £m Q1 2018 Q2 2018 H1 2018 H1 2017 Variance vs H1

2017

Financials 906 560 1,466 2,229 (763)

Technology 6 1,001 1,007 293 714

Consumer Services 30 671 701 175 526

Oil & Gas 333 68 401 241 160

Industrials - 202 202 585 (383)

Basic Materials 2 - 2 14 (12)

Health Care - - - 126 (126)

Consumer Goods - - - 90 (90)

Total 1,277 2,502 3,779 3,753 26


UK focus – relative performance of UK IPOs16 out of 21 IPOs outperformed the market in Q2 2018

Figure 13: Share price performance of UK IPOs relative to the FTSE all share index, from IPO to 29 June 2018 (%)

Source: Thomson Reuters as of 29 June 2018

Threshold of £10m proceeds. Relative performance based on the FTSE All Share Index for Main Market listed companies and FTSE AIM All Share index for AIM quoted companies.

“In Q2, London saw its largest ever technology IPO with Avast raising £692m. The Avast IPO was not without its obstacles as there had to be a compromise on price to get the deal done - a common theme during the quarter.

Other UK technology IPOs included the AIM IPOs of gaming companies, Codemasters Group and Team 17, and software companies, i-nexus and Maestrano, which together with Avast, resulted in over £1bn being raised for the sector this quarter, confirming the UK’s position as a leading centre for technology companies.

AIM appears to be somewhat sheltered from the wider global political and economic uncertainty, with a healthy pipeline forming for the second half of 2018. We also see the size of the offerings and companies coming to market, steadily increasing and continuing to perform well.”

Lucy TarletonDirector, UK Capital Markets Group at PwC

16companies have outperformed

the index

5companies have underperformed

the index

70

46

44

27

25

21

20

17

14

14

13

10

4

3

1

1

0

-6

-12

-15

-18

-30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80%

Avast PLC

Vivo Energy PLC

Quilter PLC

Codemasters Group Holdings PLC

Urban Exposure PLC

Team17 Group PLC

Odyssean Investment Trust PLC

SimplyBiz Group PLC

Tekmar Group PLC

Mind Gym PLC

Knights Group Holdings PLC

Rosenblatt Group PLC

Georgia Capital PLC

Aquis Exchange PLC

Gore Street Energy Storage Fund PLC

Anexo Group PLC

RA International Group PLC

Cake Box Holdings PLC

RM Secured Direct Lending PLC

KRM22 PLC

i-nexus Global PLC

AIM

Main


Global perspective The 7% decrease in European IPO volumes in Q2 2018 compares to a 20% drop in global IPO volumes when compared to the same period last year

Figure 14: Global IPO activity

Source: Dealogic

Figure 15: Top 10 global IPOs YTD 2018

Date Issuer Value €m Exchange Sector

Mar-18 Siemens Healthineers AG 3,652 Deutsche Börse Health Care

Jun-18 Foxconn Industrial Internet Co Ltd 3,611 Shanghai Stock Exchange Technology

May-18 AXA Equitable Holdings Inc 2,656 NYSE Financials

Jan-18 PagSeguro Digital Ltd 2,128 NYSE Industrials

Mar-18 iQIYI Inc 1,811 NASDAQ Industrials

Mar-18 DWS Group GmbH & Co KGaA 1,300 Deutsche Börse Industrials

Jan-18 ADT Inc 1,201 NYSE Financials

Mar-18 Fibra E - Grupo Aeroportuario de la Ciudad de Mexico 1,195 Mexican Stock Exchange Technology

May-18 Vinhomes JSC 1,128 Ho Chi Minh Stock Exchange Financials

Jun-18 Mercari Inc 948 Tokyo Stock Exchange Industrials

298

476

264

398

217

311 311

438 410

491

440

563

384 394

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100

200

300

400

500

600

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20

40

60

80

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

Vo

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f IP

Os

Va

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of

IPO

s €

bn

EMEA €bn Americas €bn Asia Pacific €bn IPOs

2015 20172016 2018


Appendix – IPOs by marketAppendix 1: European IPOs by market

*The Oslo MTF figures have been added since the release of the Q1 2018 report

IPOs

Value

€m IPOs

Value

€m IPOs

Value

€m IPOs

Value

€m IPOs

Value

€m

TOTAL

London Stock Exchange Group 30 2,654 37 3,596 44 9,438 22 2,303 31 3,484

London Stock Exchange 24 2,258 27 2,672 32 5,532 16 1,447 25 2,846

Borsa Italiana 6 396 10 924 12 3,906 6 856 6 638

Nasdaq Nordic 41 1,669 11 537 33 1,637 13 713 24 1,805

Nasdaq Copenhagen 2 12 - - 3 173 3 9 4 558

Nasdaq Helsinki 4 219 1 425 4 936 4 211 3 520

Nasdaq Iceland - - 1 - - - 1 - 2 322

Nasdaq Stockholm 34 1,435 9 112 24 521 5 493 14 258

Nasdaq Tallinn - - - - 1 4 - - 1 147

Nasdaq Riga - - - - 1 3 - - - -

Nadaq Vilnius 1 3 - - - - - - - -

SIX Swiss Exchange 2 1,776 2 2,310 1 29 3 379 3 1,426

Euronext 9 5,529 3 276 6 1,188 6 865 10 1,273

Euronext Amsterdam 1 648 1 - - - 4 818 1 947

Euronext Paris 5 1,265 1 6 5 638 - - 8 251

Euronext Dublin 1 2,986 1 270 1 550 1 7 1 75

Euronext Brussels 2 630 - - - - 1 40 - -

Deutsche Börse 3 1,049 3 234 5 1,060 6 5,849 7 851

Borsa Istanbul 2 265 - - - - 6 650 3 461

Warsaw 6 542 9 1,227 10 41 2 24 10 48

Oslo 7 970 1 29 9 247 5 1,011 5 -

BME (Spanish Exchange) 4 1,570 8 - 9 674 5 646 6 -

Bucharest 2 192 - - 2 64 1 40 - -

Wiener Börse - - - - 1 1,680 - - - -

Budapest - - 1 75 - - - - - -

Total 106 16,216 75 8,284 120 16,058 69 12,480 99 9,348

EU-REGULATED

London Main 13 1,578 12 1,915 15 4,921 9 1,286 9 1,892

Nasdaq Nordic (Main) 10 1,269 1 425 10 1,373 2 289 10 1,639

SIX Swiss Exchange 2 1,776 2 2,310 1 29 3 379 3 1,426

Euronext 8 5,518 3 276 4 1,161 6 865 5 1,135

Deutsche Börse (Prime and

General Standard) 2 1,032 2 231 4 1,033 4 5,719 7 851

Borsa Italiana (Main) 3 358 1 344 4 3,400 - - 2 440

Warsaw (Main) 3 518 2 1,215 3 23 1 22 3 45

Oslo Børs & Oslo Axess 4 821 1 29 5 247 3 1,011 - -

BME (Spanish Exchange) (Main) 2 1,565 - - 1 667 1 646 - -

Bucharest 2 192 - - 2 64 1 40 - -

Wiener Börse - - - - 1 1,680 - - - -

Budapest - - 1 75 - - - - - -

EU-regulated sub-total 49 14,627 25 6,820 50 14,598 30 10,257 39 7,428

EXCHANGE-REGULATED

London - AIM 11 680 15 757 17 611 7 161 16 954

Borsa Istanbul 2 265 - - - - 6 650 3 461

Borsa Italiana - AIM 3 38 9 580 8 506 6 856 4 198

Nasdaq Nordic - First North 31 400 10 112 23 264 11 424 14 166

Euronext - Alternext 1 11 - - 2 27 - - 5 138

Warsaw - NewConnect 3 24 7 12 7 18 1 2 7 3

BME - Alternative 2 5 8 - 8 7 4 - 6 -

Oslo - MTF 3 149 - - 4 - 2 - 5 -

Deutsche Börse - Scale 1 17 1 3 1 27 2 130 - -

Exchange-regulated sub-total 57 1,589 50 1,464 70 1,460 39 2,223 60 1,920

Europe total 106 16,216 75 8,284 120 16,058 69 12,480 99 9,348

Q2 2018 Q2 2017 Q3 2017 Q4 2017 Q1 2018


IPO Watch Europe surveys all new primary market equity IPOs on Europe’s principal stock markets and market segments (including exchanges in Austria, Belgium, Croatia, Denmark, France, Germany, Greece, the Netherlands, Ireland, Italy, Luxembourg, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, Turkey and the UK) on a quarterly basis. Movements between markets on the same exchange are excluded.

This survey was conducted between 1 April and 30 June 2018 and captures introductions as well as IPOs based on their first trading date. Values include greenshoe. All market data is sourced from Dealogic and the stock markets themselves and has not been independently verified by PricewaterhouseCoopers LLP.

About IPO Watch Europe

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act

upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is

given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers

LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone

else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

© 2018 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP which is a member firm of

PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

Contacts

Tilly Parke (Press office)+44 (0) 7551 235010 [email protected]

Mark Hughes+44 (0) 7736 599759 [email protected]

Lucy Tarleton+44 (0) 7701 [email protected]

IPO Watch Europe Q2 2018 - PwC … · IPO Watch Europe Q2 2018 | 3 European IPO trends 4 Market...

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