European IPO activity plummeted in the third quarter as large listings dried up amid increased market volatility and election jitters, according to S&P Global Market Intelligence analysis.
After surging in the first two quarters of 2024, the aggregate amount offered in European IPOs fell to $770 million in the third quarter — the lowest level since the start of 2020. The number of listings was equal to that in the first quarter and down from the second quarter.
Europe’s share in the total aggregate transaction value of IPOs globally dropped to 3.3% in the third quarter from 28.7% in the second and 34.8% in the first, Market Intelligence data shows.
Key highlights:
- European market experienced a spike in volatility in early August, compounded by emerging uncertainties such as economic slowdown, intensified geopolitical risks and the upcoming US presidential election, which prompted some big-ticket companies to delay their IPOs, opting to wait for more stable market conditions.”
- Jitters around elections in France, the UK and the European Union over the summer may also have stopped some companies from going public in the third quarter.
- The main contributors to large IPOs in the first half of this year — countries such as Germany, Switzerland, the Netherlands, Spain and Greece — did not host any big listings in the third quarter.
- Large listings and strong activity in the first half of 2024 bode well for the European IPO market’s full-year outlook, with expectations for a rebound in activity over the last three months of the year as well.
- The outlook for the fourth quarter, traditionally the strongest of the year, remains positive thanks to a shift in monetary policies, robust stock markets and strong after-market performance in recent IPOs, EY’s Steinbach said.
