IPO activity on European exchanges was subdued in the first quarter according to PwC’s latest IPO Watch EMEA report.
However, PwC also said that the pipeline of companies wanting to IPO continues to grow with the likelihood of increased activity dependent on the stability of the macroeconomic environment.
Q1 2025 saw 17 IPOs in Europe raising €3.1bn, a decrease of €1.7bn from the same period last year that saw €4.8bn raised from 14 IPOs. Notable IPOs from the first quarter include the €823m IPO of healthcare company Asker Healthcare on the Nasdaq Stockholm and the €748m listing of consumer company HBX Group on the BME in Spain.
The London IPO market
The first quarter of the year saw the proceeds raised from IPOs on the London Stock Exchange fall slightly to £0.1bn from £0.3bn in Q1 2024. Despite this, London’s equity market activity remains strong, driven by significant secondary sell-downs, rights issues, demerger plans and new listings. Notable transactions in Q1 include Haleon’s £2.5bn sell-down, Penon’s £490m rights issue and the Brooks Macdonald move up from AIM to the Main Market of the LSE.
The Middle East and African IPO markets
Total EMEA IPO proceeds in the first quarter this year were $5.7bn from 42 IPOs compared to $6.7bn from 31 listings across the same period last year. The healthcare sector contributed the largest proceeds raising $1.4bn followed by the financial sector which raised $1.1bn.
The Gulf Cooperation Council (GCC) IPO market remained robust in the first quarter. The Kingdom of Saudi Arabia was the most active country within the GCC with nine IPOs raising combined proceeds to $1.1bn. The GCC pipeline in 2025 is balanced between private companies and privatisations, which led IPO activity last year.
While Africa saw no listings in Q1 2025, South Africa continues to see strong market performance. It is hoped that will set the stage for successful IPOs to come through later in the year.
The Global IPO market
Global IPO activity in the first quarter has increased in both volume and value, with proceeds rising by almost 30% to $28.1bn from 245 listings compared to the same period last year – $21.8bn from 213 listings. The top five IPOs globally in Q1 represent 29% of total proceeds raised and showed a diversity of geography and sector with IPOs from Japan, the US and India across energy, materials and information technology sectors.
The Tokyo Stock Exchange hosted the largest IPO globally to date and its largest IPO since 2018 with the listing of JX Advanced Metals – a semiconductor materials supplier raising proceeds of $2.5bn. The largest IPO in India was the private equity backed IPO of Hexaware Tech, an IT services provider, raising $1bn.
Kat Kravtsov, Capital Markets Director at PwC UK, said:
“A variety of equity transactions have been completed in Europe and the UK in the first quarter of 2025, ranging from large secondary issuances to primary capital raises and IPOs, demonstrating that investors have a deep pool of capital available for deployment. The recent spike in volatility may curb investor appetite for IPOs until the market sees a degree of stability in the wider macroeconomic environment and clarity on policy direction.”
As corporates and their shareholders continue to evaluate potential IPO windows, the focus is shifting towards preparation and spending more time on IPO and exit readiness with the objective of preserving and maximising value, whilst maintaining strategic flexibility with regard to the timing and monetisation options.
The first quarter of 2025 witnessed a more challenging macroeconomic backdrop than anticipated as market volatility increased driven by uncertainty around global trade tariffs. Despite this, European equities outperformed the US and Europe hosted sizeable IPOs. In the UK, the secondary market continued to be strong in the first quarter of 2025 as demonstrated by Haleon’s £2.5bn sell-down and Pennon’s £490m rights issue.
However, the recent global market volatility has understandably resulted in companies delaying their IPO processes until the markets are more stable. The outlook for the rest of the year is now highly dependent on the stabilisation of equity markets and a return of confidence. If this is achieved, investors should expect to see a resumption of London listing activity driven by demergers, move ups to the main market, international listings and traditional IPOs.
AloJapan.com