FX.co ★ IPOs boom in Europe

September 30, Bloomberg released the results of its survey showing that in the third quarter

the volume of funds raised by the European companies at IPOs grew had grown by over six

times as compared to the previous year.

Details remaining uncovered, Bloomberg estimated the 3Q IPO revenues of the European

companies at more than $22 billion. As Bloomberg representatives explained, the vivid

interest in the European business was explained by overpriced U.S. stocks and evaporating

concerns over the economic situation in Europe.

According to Bloomberg research, Deutsche Annington Immobilien had the largest IPO

size. In July, the Germany-based real estate company made its first public offer on the

Frankfurt Stock Exchange. It managed to raise over €570 million. Next comes the $626

million IPO of Foxtons Group property broker in London.

The companies that placed their stocks on the U.S. exchanges earned $11 billion from

July to September. This is twice less than in Europe. As for American companies, the third

quarter was very successful – in 2012 they made only one-third of this year’s level.

The Asia-Pacific region is among outsiders in terms of IPO results for the third quarter.

In the last quarter the companies attracted 40% funds less than in 2012. As Bloomberg

estimates suggest, about $10 billion was invested as compared to $17 billion last year. The

picture in the region might change for the better after Alibaba online marketplace lists its

shares on the stock exchange. The valuation of the Chinese internet giant could run to $100

billion.

On the global scale, since the break of 2013, IPOs yielded businessmen 10% more funds

that in the same period of 2012. Last year, IPOs raised $112 billion worldwide.