PwC: The value of IPOs on the WSE/NewConnect fell to 12.9m in H1 2024
The value of initial public offerings (IPOs) conducted on European stock exchanges in H1 2024 amounted to €11.4 billion (36 IPOs in total), an increase of 356% compared to the same period last year (€2.5 billion, 25 IPOs in total). There were four IPOs on the NewConnect in Warsaw, valued at PLN 12.9m (approximately €2.9m), down 13% year-on-year, when there were six offerings with a total value of PLN 14.7m (approximately €3.2m), according to a report by PwC.
According to the report ‘IPO Watch EMEA’, the Warsaw Stock Exchange saw a further increase in the main indices in H1 2024. After the middle of the year, there was still a lack of IPOs on the main market.
"The main indices have been rising since autumn 2022 reaching successive peaks, and despite this, there has only been one IPO on the WSE main market since then, that of Murapol in 2023. Hence, it is difficult to talk about any revival on the IPO market, while we are observing an increased interest in debuts and more and more preparatory work being started among companies from Poland and the CEE region. Media reports indicate a possible debut of several companies (e.g. Żabka, Diagnostyka, the Croatian company Studenac or TTMS) - an IPO by any of these companies would be a significant event for the WSE. It is worth noting that the aforementioned candidates are mostly portfolio companies of private equity funds, and the success of their debuts could cause an incentive to liquidate more of the funds' assets, especially considering that all bull markets have an end at some point," said senior manager of PwC Poland's capital markets team Kamil Wardzyński.
According to the report, the European IPO market in Q2 2024 saw a continuation of the increases initiated in Q1 2024. (IPO value growth of 37% to €6.6 billion compared to Q1 2024 results). Looking at the first half of 2024, the total value of primary offerings in Europe totalled €11.4 billion (up 356% on the same period last year), the best result for the first half of the year since the record-breaking 2021. Between January and June this year, 36 companies debuted on European exchanges (including three ‘mega offerings’ worth more than €1bn, two of which took place in Q2), compared to 25 IPOs in the same period last year, it was reported.
There has been significant activity from private equity funds placing offerings of their portfolio companies in Europe in 2024, with more than half of the top 10 IPOs in Europe in the half-year, and private equity funds playing a key role in the market's recovery. Despite the uncertainty surrounding the European and US elections, the outlook for the European IPO market for the second half of the year, as well as for 2025, appears optimistic, with companies already preparing for deals to take advantage of potentially favourable IPO windows, the report indicated.
The second quarter of 2024 in the European IPO market saw several significant offerings. The IPO of Puig Brands, an apparel and perfume company, was the largest offering in the world, with the company raising €2.6 billion (debut on the Spanish BME). It was closely followed by CVC Capital, the private equity and investment advisory group, which raised €2.2 billion with its debut on Euronext Amsterdam. In third place was Exosens, a manufacturer of optoelectronic components, which debuted on Euronext Paris with a €350 million offering, it was also reported.
"Although not yet visible in Warsaw, the European IPO market is recovering after more than two years of stagnation, largely due to private equity funds, whose portfolio companies dominated among the largest IPOs in 2024. At the same time, there is no clear investor preference for the sectors of the IPOs, which allows us to look with optimism at the possibility of interesting and sectorally diversified transactions. The outlook for the second half of the year and 2025 is positive - despite the traditional uncertainty related to the electoral calendar (particularly in the US), the success of the debuts to date and the post-IPO increases in the capitalisation of debutantes build positive sentiment and motivate more companies (and their owners, including a private equity fund) to make intensive preparations and seek optimal conditions for transactions in the coming quarters," added PwC Poland partner, capital markets team, Bartosz Margol.
Starting from Q1 2024, the IPO Watch Europe report has been replaced by IPO Watch EMEA, which covers the Middle East and Africa regions as part of its analysis of the IPO market, in addition to Europe.
The IPO Watch EMEA report covers IPOs on the major stock exchanges in the EMEA region (including those in the European Union, the UK, Iceland, Norway, Turkey, Serbia, Switzerland, the Middle East and Africa) and is published quarterly. Transfers between markets within a single exchange, are not included in the statistics. The report covers the period from 1 January to 30 June 2024 and is based on the dates of IPOs of shares or rights to shares. The EMEA IPO Watch report only covers offerings with a value of more than USD 5 million, the data excludes IPOs of closed-end funds, business development companies (so-called Business Development Companies) and transactions on unregulated markets. The Polish market commentary discusses all IPOs on the main market of the Warsaw Stock Exchange and the non-regulated market NewConnect, regardless of their value.
Source: PwC and ISBnews
