IPO Watch Europe Survey Q4 2009
 |
1 Februarie 2010 |
 |
PRICEWATERHOUSECOOPERS in ROMANIA |
Adresa
Strada Barbu Văcărescu, Nr. 301-311
Cladirea Clădirea Lakeview
020276 Bucureşti, Sector 2
Telefon
+40-21-225 3000
Fax
+40-21-225 3600
Website
www.pwc.com/ro
IPO Watch Europe, the PricewaterhouseCoopers survey tracking the volume and value of IPOs around Europe, recorded a distinct upturn in activity in the fourth quarter (October to December) of 2009, with both value and volume rising markedly over the previous quarter.
It is not unusual for a year's final period to experience a surge of IPOs and this quarter was the most active since the final quarter of 2008, with 61 companies listing on European exchanges, a 39% increase on the 44 IPOs in the third quarter of 2009.
A total of €4,994m was raised in Q409 which was over four times as much as the previous quarter which saw €1,375m raised. The largest two IPOs accounted for 49% of the total money raised this quarter. PGE Polska Grupa Energetyczna raised €1,407m on the Warsaw Stock Exchange while Delta Lloyd NV raised €1,016m on NYSE Euronext.
The average offering value more than doubled from €43m in the third quarter of 2009 to €92m in the current quarter. This is almost a three-fold increase compared with €36m in the same period of 2008.
Of the total IPOs in the fourth quarter of 2009, 22 were completed by non-European companies. They raised €1,169m, representing 23% of the value of all IPOs. This proved to be almost double the number of international IPOs in the previous quarter which saw 13 IPOs, while the money raised was 12% less than the €1,322m raised in that quarter.
Looking to the future it is difficult to make firm predictions against what remains a fragile economic background, but with investor sentiment appearing to improve, we continue to believe that there will be a substantial pick-up in IPO activity in the first half of 2010, barring any major unexpected financial shocks. It should be noted that pricing pressure currently remains strong as institutional investors look to strike a hard bargain.
European IPO activity by number and value
Number of IPOs
There were 61 IPOs on the European exchanges in the fourth quarter of 2009, a fall of 5% compared to the same period in 2008, which saw 64 IPOs. The volume of IPOs grew compared with this year's third quarter which saw 44 IPOs. This 39% increase reflects the fact that 2009 experienced a steady rise in IPO activity as institutional investor confidence in the global economy slowly started to show signs of recovery.
There were 61 IPOs on the European exchanges in the fourth quarter of 2009, a fall of 5% compared to the same period in 2008, which saw 64 IPOs. The volume of IPOs grew compared with this year's third quarter which saw 44 IPOs. This 39% increase reflects the fact that 2009 experienced a steady rise in IPO activity as institutional investor confidence in the global economy slowly started to show signs of recovery.
IPO value
There was a marked increase of 263% in the value of IPOs in the current quarter whereby the fourth quarter of 2009 achieved a value of €4,994m, compared to the €1,375m raised in the third quarter of 2009. The same trend is apparent when comparing the value of IPOs between the year-on-year figures, with the fourth quarter of 2009 achieving a figure of just over four times the €1,238m raised in the fourth quarter of the previous year.
Offering value of IPOs
The largest IPO in the fourth quarter was PGE Polska Grupa Energetyczna, a Polish energy company which listed on the Warsaw Stock Exchange's (WSE) Main Market and raised €1,407m. The next largest transaction was that of Delta Lloyd NV, a Dutch insurance company which raised €1,016m on NYSE Euronext (Euronext). The value of these two IPOs was more than double that of the two largest IPOs in the fourth quarter of 2008, whereby Resolution raised €660m on London's Main Market, followed by Enea which raised €546m on WSE's Main Market. This reinforces an overall trend of increased IPO activity in the last quarter of 2009.
The largest IPOs for 2009's third quarter were Tata Steel on London's PSM Market and Shin Kong Financial Holding Company on Luxembourg's EuroMTF Market. These two IPOs raised a combined total of €621m, just 44% of the offering value raised by the largest IPO alone in quarter four 2009.
The average offering value for European IPOs raising new money increased by 156% to €92m this quarter compared with €36m in the same period of 2008, and increased by 114% from €43m in the third quarter of 2009.
It is interesting to note that the combined value of the top five IPOs that took place in Q409 accounted for 75% (€3,765m) of the total money raised during the quarter. This left only €1,229m raised by the remaining 56 IPOs.
