The amount of funds raised by IPOs is down 8% in 2020

  •   03/02/2021 - 14h43
  •   DEHOUI Lionel

According to PwC, the amount of funds raised by European IPOs in 2020 has fallen. There are many factors behind this performance. These include the worrying development of the Covid-19 pandemic and the debates surrounding Brexit.

The amount of funds raised by IPOs is down 8% in 2020

Factors behind this decline

The year 2020 was also animated by the news on Initial Public Offering (IPOs) in Europe. The IPOs reported fundraising, which amounted to €20.3 billion last year. 20.3 billion last year. According to the latest report " IPO Watch Europe ", this amount corresponds to a decrease of 8%.

On the other hand, there has been an increase in the number of transactions. This increase is estimated at 27%. Indeed, the overall decline in funds raised in IPOs in Europe is due to a number of factors. Like several economic sectors, the health crisis linked to the coronavirus epidemic also affected the European IPO market in 2020.

In fact, the numerous containment measures introduced in several countries of the Old Continent have impacted the activities of the European Stock Exchange. In addition, the other factor that caused the decline in these funds was the continuing uncertainties related to Brexit.

 

European stock exchanges having carried out IPOs in 2020

The health crisis plunged the world into great economic uncertainty last year. Despite this, the London Stock Exchange remained attractive and maintained its position as Europe's most active market in terms of value. Its shares account for a third of the total amount of funds raised in 2020.

In fact, the London stock market recorded precisely 30 IPOs in 2020, raising 6.7 billion euros. 6.7 billion. By 2019, 27 IPOs had raised that amount. In addition, Oslo is in second place with 40 IPOs.

These raised EUR 2.9 billion. Finally, Amsterdam is in third place. Here, three transactions raised EUR 2.7 billion.

 

About the funds raised for European IPOs

In 2020, secondary fundraising (Further Offerings, FOs) accounted for €134.7 billion across Europe, compared with €79.7 billion in 2019. 79.7 billion in 2019. The London Stock Exchange was also the largest exchange in Europe for FOs. 50.1 billion, representing approximately 37% of the total amount recorded in Europe.

By contrast, the funds raised in the five largest European IPOs amounted to EUR 8.9 billion. 8.9 billion. This amount represents nearly 44% of the total funds raised in 2020. In addition, the largest fund raising was carried out by JDE Peet's N.V., the consumer goods specialist.

This fund raising is valued at approximately €2.6 billion. Following JDE Peet's N.V. is Allegro.eu SA, which raised €2.3 billion.