ipo watch europe q3 2018 - pwcipo watch europe q3 2018 | 4 european ipo trends for the second...

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


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


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


*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

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100

120

140

160

-

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25

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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

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600

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40

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YTD 2008 YTD 2009 YTD 2010 YTD 2011 YTD 2012 YTD 2013 YTD 2014 YTD 2015 YTD 2016 YTD 2017 YTD 2018

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f IP

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Val

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IPO

s €b

n

YTD value €bn YTD IPOs


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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0

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-5%

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% 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


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


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

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18

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20

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9 7

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IPO

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bn

Value €bn IPOs

2014 2015 2016 20182017


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


*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)


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


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

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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

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5

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25

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35


Vo

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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


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


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

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200

300

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500

600

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20

40

60

80


Vo

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Va

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of

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s €

bn

EMEA €bn Americas €bn Asia Pacific €bn IPOs2014 2015 2016 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


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

given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers

LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone

else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

© 2018 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP which is a member firm of

PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

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]

ipo watch europe q3 2018 - pwcipo watch europe q3 2018 | 4 european ipo trends for the second...

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