ipo watch europe q3 2018 - pwcipo watch europe q3 2018 | 4 european ipo trends for the second...
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IPO Watch Europe Q3 2018
www.pwc.co.uk/ipowatch
€3.9bn raised in Q3 2018
(Q3 2017: €8.3bn, 53% decrease)
64 IPOsin Q3 2018 across Europe
(Q3 2017: 76 IPOs, 16% decrease)
€25.8bnIPO Proceeds raised in YTD 2018
(YTD 2017: €29.1bn, 11% decrease)
2IPO Watch Europe Q3 2018 | Source: Dealogic and Stock Exchanges
3IPO Watch Europe Q3 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“Geopolitical headwinds and the summer hiatus muted activity in Q3, with European IPO values at their lowest levels for 2 years. The pipeline going into Q4 looks relatively healthy as volatility continues to be low and there a number of mega-IPOs expected.
That said, the weak aftermarket performance of a number of recent IPOs and the wider uncertainty around the Brexit negotiations may deter prospective IPO candidates from completing a transaction on the public markets before the end of the year.”
Mark HughesPartner, UK Capital Markets Leader at PwC
4IPO Watch Europe Q3 2018 |
European IPO trendsFor the second quarter in a row, the London Stock Exchange is the most active in terms of volume and the largest contributor to European IPO values, representing almost half of all European IPO proceeds raised
Figure 1: Top 3 stock exchanges in Europe in Q3 2018 (by offering value)
Source: Dealogic and Stock Exchanges
5IPO Watch Europe Q3 2018 |
European IPO trendsQ3 2018 European IPO values and volumes are below levels seen in Q3 2017, however, have recovered from Q3 2016, when activity was dampened following the UK’s vote to leave the EU
Figure 2: European IPO activity YTD September since 2008
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
*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 16.2 8.3 16.1 12.5 9.3 3.9
68
146
76 86
83
124
53
105
57
95
52
76
55
108
76
120
69
99
64
-
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 Q2 Q3
Vo
lum
e o
f IP
Os
Val
ue
of I
POs
€bn
Value €bn IPOs
2014 2015 2016 2017 2018
12.7 1.9 16.2 27.3 5.2 12.6 43.0 38.6 19.4 29.1 25.8
240
71
251
377
214
173
290
260
204
239 232
-
100
200
300
400
500
600
-
20
40
60
YTD 2008 YTD 2009 YTD 2010 YTD 2011 YTD 2012 YTD 2013 YTD 2014 YTD 2015 YTD 2016 YTD 2017 YTD 2018
Vo
lum
e o
f IP
Os
Val
ue
of
IPO
s €b
n
YTD value €bn YTD IPOs
6IPO Watch Europe Q3 2018 |
0
2
4
6
8
10
12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0
5
10
15
20
25
30
35
40
45
50
-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 volatilityVolatility remains stable despite geopolitical tensions, however, IPO activity in Europe remains muted
Figure 4: Volatility tracked against European IPO values
Source: Thomson Reuters as at 29 September 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
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
€1bn+ IPO
of SIG
Combibloc
Group AG
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
7IPO Watch Europe Q3 2018 |
Pricing of top 5 IPOsThe IPO of SIG Combibloc IPO on the SIX Swiss exchange was the largest IPO this quarter, with the remaining four largest IPOs listing in LondonFigure 6: Top 5 European IPOs in Q3 2018
Figure 7: Quarterly value and volume of European PE backed IPOs since 2014
European PE trendsVolumes of PE-backed IPOs are at their lowest since Q4 2012
Source: Dealogic and Stock Exchanges
SIG Combibloc
Group AG
Amigo Holdings
Plc
Tritax EuroBox
plc
Trian Investors 1
Ltd
Hipgnosis
Songs Fund Ltd
Exchange SIX Swiss London London London London
IPO date 28-Sep 02-Jul 09-Jul 27-Sep 11-Jul
Money raised (€m) 1,708 407 339 301 229
Price range CHF11.00 -
CHF12.00£2.25 - £2.95 £1.00 £1.00 £1.00
Offer price CHF11.25 £2.75 £1.00 £1.00 £1.00
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 1.8
15
40
7
11
20
18
6
18
6
20
5
9 7
18
7
20
10 8
3
-
5
10
15
20
25
30
35
40
45
-
2
4
6
8
10
12
14
16
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Vo
lum
e o
f IP
Os
Va
lue
of
IPO
s €
bn
Value €bn IPOs
2014 2015 2016 20182017
8IPO Watch Europe Q3 2018 |
The sector storyIndustrials represent the largest sector in Q3 2018, supported by the mega-IPO* of SIG Combibloc Group AG
Figure 8: European IPO values by sector
Financials
20 IPOs raised
€1.6bn in Q3 2018
Largest IPO:
Amigo Holdings Plc
€407m
Basic Materials
3 IPOs raised
€173m in Q3 2018
Largest IPO:
Yellow Cake plc
€171m
Industrials
12 IPOs raised
€1.8bn in Q3 2018
Largest IPO:
SIG Combibloc Group
€1,708m
Source: Dealogic and Stock Exchanges
*Mega-IPOs are those raising in excess of €1bn
By offering value (€m) Q1 2018 Q2 2018 Q3 2018 YTD 2018 YTD 2017 Variance vs YTD
2017
Industrials 106 2,050 1,799 3,955 9,218 (5,263)
Financials 4,879 3,160 1,621 9,660 3,194 6,466
Basic Materials 779 - 173 952 639 313
Consumer Goods 436 220 132 788 4,609 (3,821)
Consumer Services 632 1,439 105 2,176 4 2,172
Health Care 4,478 246 82 4,806 2,214 2,592
Technology 331 2,029 16 2,376 251 2,125
Telecommunications - 109 11 120 1,777 (1,657)
Oil & Gas 376 77 2 455 5,916 (5,461)
Utilities 463 18 - 481 1,248 (767)
Total 12,480 9,348 3,941 25,769 29,070 (3,301)
9IPO Watch Europe Q3 2018 |
UK focus – overviewFour out of the top five IPOs in Europe listed in London
Figure 9: UK IPO trends (by offering value) Figure 10: UK IPO trends (by volume)
Figure 11: Top 5 UK IPOs in Q3 2018
Note: Ranking in £ sterling may be different from ranking in Euros due to exchange rate
Figure 12: UK IPO value by sector
£1.7bn£0.5bn £0.3bn
Q3‘18
Q3‘15
Q3‘16
£2.4bn
Q3‘17
169 9
Q3‘18
Q3‘15
Q3‘16
27
Q3‘17
Source: Dealogic and Stock Exchanges
By offering value £m Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Variance vs
Q3 2017
Financials 1,481 2,169 906 560 1,366 (115)
Basic Materials 427 1,159 2 - 153 (274)
Consumer Services 172 184 30 671 65 (107)
Health Care 15 7 - - 60 45
Industrials 237 170 - 202 38 (199)
Technology 9 13 6 1,001 2 (7)
Oil & Gas 3 2 333 68 - (3)
Consumer Goods - 771 - - - -
Utilities - 441 - - - -
Total 2,344 4,916 1,277 2,502 1,684 (660)
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 1.4
0.10.3
0.0
0.1
0.2
0.6
0.1
0.2
0.1 0.6
0.7
0.5
0.2
0.8
0.3
-
1
2
3
4
5
6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Valu
e o
f IP
Os £
bn
Main AIM
2015 2016 2017 2018
18 16 5 22 9 7 3 9 15 13 12 15 9 9 11
9 12
4
6
914
6
10
511
1517
7
16
5
-
5
10
15
20
25
30
35
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Vo
lum
e o
f IP
Os
Main AIM
2015 2016 2017 2018
Issuer Value (£m) Sector Market PE backed
Amigo Holdings Plc 359 Financials Main No
Tritax EuroBox plc 300 Financials Main No
Trian Investors 1 Ltd 271 Financials Main No
Hipgnosis Songs Fund Ltd 202 Financials Main No
Yellow Cake plc 151 Basic Materials AIM No
10IPO Watch Europe Q3 2018 |
UK focus – relative performance of UK IPOs10 out of 16 IPOs outperformed the market in Q3 2018
Figure 13: Share price performance of UK IPOs relative to the FTSE all share index, from IPO to 28 September 2018 (%)
Source: Thomson Reuters as of 28 September 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.
“The financial sector dominates once again in London, accounting for over 80% of London values with ASA International Group, the African and Asian focused global microfinance provider, showing the strongest share price performance post-IPO this quarter. The relative performance of UK IPOs was also encouraging with 10 of the 16 IPOs this quarter outperforming the index, signalling that investors remain confident in those issuers coming to market.
With Brexit around the corner and negotiations still ongoing, it is promising to see a number of international issuers in the IPO pipeline,continuing to see London as ‘open for business’ and a key financial centre in Europe.”
Lucy TarletonDirector, UK Capital Markets Group at PwC
10companies have outperformed
the index
6companies have underperformed
the index
55
23
21
10
10
8
7
7
4
1
0
-2
-5
-9
-20
-52
-60% -40% -20% 0% 20% 40% 60% 80%
ASA International Group PLC
Immotion Group PLC
Yellow Cake PLC
Sensyne Health PLC
Hipgnosis Songs Fund Ltd
TheWorks.co.uk PLC
Trackwise Designs PLC
Tritax EuroBox PLC
Kavango Resources PLC
Trian Investors 1 Ltd
Puma VCT 13 PLC
Ashoka India Equity Investment Trust PLC
Nucleus Financial Group PLC
Amigo Holdings PLC
BigDish PLC
Argo Blockchain PLCAIM
Main
11IPO Watch Europe Q3 2018 |
Global perspective Five of the of top ten global IPOs to date are Chinese Telecoms and Technology companies
Figure 14: Global IPO activity
Source: Dealogic
Figure 15: Top 10 global IPOs YTD 2018
Date Issuer Value €m Exchange Sector
Aug-18 China Tower Corp Ltd 6,398 Hong Kong Telecommunications
Jul-18 Xiaomi Corp 4,694 Hong Kong Telecommunications
Mar-18 Siemens Healthineers AG 4,200 Deutsche Börse Health Care
Sep-18 Meituan Dianping 3,638 Hong Kong Technology
Jun-18 Foxconn Industrial Internet Co Ltd 3,611 Shanghai Technology
May-18 AXA Equitable Holdings Inc 2,656 NYSE Financials
Jan-18 PagSeguro Digital Ltd 2,128 NYSE Technology
Mar-18 iQIYI Inc 1,951 NASDAQ Consumer Services
Sep-18 SIG Combibloc Group AG 1,708 SIX Swiss Exchange Industrials
Jul-18 Viva Energy Group Ltd 1,684 ASX Oil & Gas
298
476
266
399
217
314 311
437 410
494
441
571
389 426
393
-
100
200
300
400
500
600
-
20
40
60
80
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Vo
lum
e o
f IP
Os
Va
lue
of
IPO
s €
bn
EMEA €bn Americas €bn Asia Pacific €bn IPOs2014 2015 2016 2018
12IPO Watch Europe Q3 2018 |
Appendix – IPOs by marketAppendix 1: European IPOs by market
IPOs
Value
€m IPOs
Value
€m IPOs
Value
€m IPOs
Value
€m IPOs
Value
€m
TOTAL
London Stock Exchange Group 37 3,596 44 9,438 22 2,303 31 3,484 28 2,043
London Stock Exchange 27 2,672 32 5,532 16 1,447 25 2,846 16 1,899
Borsa Italiana 10 924 12 3,906 6 856 6 638 12 144
SIX Swiss Exchange 2 2,310 1 29 3 379 3 1,426 2 1,708
Euronext 3 276 6 1,188 6 865 10 1,273 6 89
Euronext Paris 1 6 5 638 - - 8 251 6 89
Euronext Amsterdam 1 - - - 4 818 1 947 - -
Euronext Dublin 1 270 1 550 1 7 1 75 - -
Euronext Brussels - - - - 1 40 - - - -
Sofia - - - - - - - - 1 42
Nasdaq Nordic 11 537 33 1,637 13 713 24 1,805 5 21
Nasdaq Stockholm 9 112 24 521 5 493 14 258 2 14
Nasdaq Copenhagen - - 3 173 3 9 4 558 2 7
Nasdaq Riga - - 1 3 - - - - 1 -
Nasdaq Helsinki 1 425 4 936 4 211 3 520 - -
Nasdaq Iceland 1 - - - 1 - 2 322 - -
Nasdaq Tallinn - - 1 4 - - 1 147 - -
Deutsche Börse 3 234 5 1,060 6 5,849 7 851 1 17
BME (Spanish Exchange) 8 - 9 674 5 646 6 - 11 9
Warsaw 9 1,227 10 41 2 24 10 48 4 8
Athens Stock Exchange 1 - - - - - - - 1 4
Oslo 1 29 9 247 5 1,011 5 - 4 -
Wiener Börse - - 1 1,680 - - - - 1 -
Borsa Istanbul - - - - 6 650 3 461 - -
Bucharest - - 2 64 1 40 - - - -
Budapest 1 75 - - - - - - - -
Total 76 8,284 120 16,058 69 12,480 99 9,348 64 3,941
EU-REGULATED
SIX Swiss Exchange 2 2,310 1 29 3 379 3 1,426 2 1,708
London - Main 12 1,915 15 4,921 9 1,286 9 1,892 11 1,610
Euronext 3 276 4 1,161 6 865 5 1,135 2 60
Sofia - - - - - - - - 1 42
Deutsche Börse - Prime and General Standard 2 231 4 1,033 4 5,719 7 851 1 17
BME (Spanish Exchange) - Main - - 1 667 1 646 - - 1 9
Warsaw - Main 2 1,215 3 23 1 22 3 45 1 5
Athens Stock Exchange 1 - - - - - - - 1 4
Wiener Börse - - 1 1,680 - - - - 1 -
Budapest 1 75 - - - - - - - -
Nasdaq Nordic - Main 1 425 10 1,373 2 289 10 1,639 - -
Borsa Italiana - Main 1 344 4 3,400 - - 2 440 - -
Oslo Børs & Oslo Axess 1 29 5 247 3 1,011 - - - -
Bucharest - - 2 64 1 40 - - - -
EU-regulated sub-total 26 6,820 50 14,598 30 10,257 39 7,428 21 3,455
EXCHANGE-REGULATED
London - AIM 15 757 17 611 7 161 16 954 5 289
Borsa Italiana - AIM 9 580 8 506 6 856 4 198 12 144
Euronext - Alternext - - 2 27 - - 5 138 4 29
Nasdaq Nordic - First North 10 112 23 264 11 424 14 166 5 21
Warsaw - NewConnect 7 12 7 18 1 2 7 3 3 3
BME - Alternative 8 - 8 7 4 - 6 - 10 -
Oslo - MTF - - 4 - 2 - 5 - 4 -
Borsa Istanbul - - - - 6 650 3 461 - -
Deutsche Börse - Scale 1 3 1 27 2 130 - - - -
Exchange-regulated sub-total 50 1,464 70 1,460 39 2,223 60 1,920 43 486
Europe total 76 8,284 120 16,058 69 12,480 99 9,348 64 3,941
Q3 2018 Q3 2017 Q4 2017 Q1 2018 Q2 2018
13IPO Watch Europe Q3 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 July and 30 September 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
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Contacts
Tilly Balwin (Press office)+44 (0) 7551 235010 [email protected]
Mark Hughes+44 (0) 7736 599759 [email protected]
Lucy Tarleton+44 (0) 7701 [email protected]