IPO activity shows potential for 'thawing' in 2023
The London Stock Exchange remained dominant on the European market throughout both 2023 and Q3
In PwC's latest IPO Watch, the firm revealed that the London Stock Exchange remained dominant on the European market both year-to-date and in Q3, delivering 94 follow-on equity transactions and raising £14.6bn this year.
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While the European market «remains subdued», the third quarter saw an uptick in IPOs, with 33 IPOs across Europe raising €4.6bn, up from last quarter, which saw 26 IPOs with a value of €2.1bn.
The US also showed signs of recovery in Q3, with three large technology companies completing their IPOs in the last quarter — most notably Arm Holdings, the largest IPO of the year at $5.2bn.
However, overall US issuance was still down slightly from Q2, which saw $37.5bn raised from 249 IPOs.
Globally, computer and electronics sector drove IPO proceeds, accounting for 40% of the total raised in the quarter.
In total, global IPO activity reached $33.8bn from 284 listings last quarter, down on the same period last year, which saw US$46.6bn raised from 291 IPOs.
Richard Spilsbury, capital markets partner at PwC UK, said that he did not expect IPO activity to pick up significantly during the last quarter of the year, as investors «continue to wait for the macroeconomic environment to stabilise».
He added: «For IPO markets to recover in 2024, further work needs to be done on narrowing the valuation gap between investors and shareholders, as we have begun to see in the US with shareholders accepting lower IPO valuations compared with the previous funding round.»
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