2019 IPO Market in Europe: Success for Mid-Size Companies, Challenges for Smaller Ones

According to a report by Reuters, while the current year has witnessed increased Initial Public Offerings (IPOs) in Europe, smaller companies still face challenges in accessing the stock market. Some unsuccessful attempts at IPOs include German on-road payments provider DKV Mobility and Portuguese insurer Fidelidade, citing market instability. Andrew Briscoe, head of Bank of America’s equity capital markets syndicate for Europe, the Middle East, and Africa, stated that the current IPO market is open only to specific assets, and there is still a long way to go before a fair price is determined for all. Gareth McCartney, global co-head of ECM at UBS, highlighted that smaller companies must fit into profitable investment themes such as defense and software. However, multiple midsize IPOs have succeeded, including Renk and French enterprise software provider Planisware. The recent surge in IPOs is attributed to a better economic outlook that has resulted in elevated stock prices. Private equity funds are also under mounting pressure to repay capital to their beneficiaries. The upcoming months are anticipated to witness prominent IPOs that are predicted to perform well with investors. Italian fashion brand Golden Goose is mulling a possible Milan IPO by the end of June, as confirmed by sources privy to the matter. Other prospective IPOs include German transport group Flix, Spanish fashion brand Tendam, and business-to-business hotel booking platform Hotelbeds, who have been preparing for their respective listings. German educational publisher Springer Nature has enlisted banks to initiate an IPO by the end of this year.