Proceeds from European IPOs in the traditionally quieter third quarter settled back to 6.6 billion, from 22.3 billion in Q2 2014.
Nevertheless, Q3 proceeds were more than double those of Q3 2013 (3.0 billion), primarily as a result of a number of large IPOs in July, including NN Group in the Netherlands (1.5 billion), FinecoBank in Italy(673 million) and Logista in Spain (606 million).
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
2014 IPO activity has almost quadrupled compared to last year. In the nine months to September 2014, 40.3 billion has been raised by 289 companies, in comparison to 11.7 billion from 173 companies in the same period in 2013.
Mark Hughes, partner in the UK Capital Markets Group at PwC said:
"The European IPO market performed strongly in the traditionally quiet third quarter against a backdrop of geo-political uncertainty in the Ukraine and the Middle East and, closer to home, the Scottish Referendum.
"Whilst we have seen a promising start to the final quarter with a number of large IPOs completing there are a number of warning signs on the horizon. However, if the markets continue to be receptive to IPOs, I expect the fourth quarter to surpass the 15 billion raised in Q4 2013."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe exchanges of London, Milan and Euronext accounted for the majority of proceeds raised in the quarter, together contributing over 70% of the total IPO proceeds in Q3 2014. Euronext saw eight IPOs raising 1.7 billion, with the largest IPO of the quarter, NN Group, contributing almost 90% of exchange proceeds. Milan raised 1.1 billion from 10 IPOs and London continued to be the busiest IPO centre in Europe with 23 companies raising 1.9 billion.
Financials dominated the quarter, contributing nearly half of the proceeds raised, with 14 companies raising 3.1 billion and four IPOs in the top ten.
Richard Weaver, partner and Head of the UK Capital Markets Group at PwC, said:
"The big story this quarter was one of demergers. NN Group, the Dutch insurance division spun out of ING Bank, was the largest European IPO, and we also saw listings of FinecoBank in Italy, Citizen Financials in the US and, in the previous quarter, TSB Bank here in the UK.
"These large and usually complex transactions have been primarily driven by regulatory requirements, and we expect this trend to continue."
Global IPO activity year to date stands at its highest level since PwC started publishing IPO Watch with 137 billion raised in 9 months. The US market led the field, reaching 28.7 billion in the quarter and 52.4 billion year-to-date, with the IPO of Alibaba being the largest on record raising 16.8 billion alone.
