According to bankers, the European IPO market will continue to recover in 2025 despite political and economic risks. According to Bloomberg, the total funds raised through initial public offerings in Europe in 2024 amounted to more than $19 billion, 30% more than in 2023.
The agency notes that bankers are confident that the positive dynamics will continue due to the intensification of private equity-backed transactions and corporate restructurings, such as spin-offs.
According to Bloomberg, the forecasts of IPO growth in Europe are explained by several factors.
First, borrowing rates are falling, and stock indices are hitting record levels, making the market more attractive for placements.
Secondly, private equity funds want to realize their accumulated assets to return funds to their investors. Companies are also interested in going public to raise capital for further growth and optimize their business structures.
Analysts name HBX Group from Spain and Stada Arzneimittel AG from Germany as potential 2025 IPOs, as well as private equity-backed companies Galderma Group AG and Planisware SA.
European corporations such as Continental AG, which is planning to spin off its auto parts division, and Sweden’s Embracer Group AB, which is preparing to spin off Asmodee Group AB, will also launch IPOs.
Bloomberg writes that the European IPO market is still below its historical highs, including those of the pandemic period. Many companies have postponed their plans to go public due to political uncertainty, including the potential impact of the US elections and the threat of import tariffs.
However, analysts at HSBC and BNP Paribas say these risks could be offset by lower interest rates in Europe and the attractiveness of European stocks to investors.
Bloomberg analysts calculated that this year’s European IPO market was dominated by large deals, each of which attracted more than $500 million. These large IPOs accounted for about 70% of the total funds raised through initial public offerings in Europe.
However, financial advisors and analysts believe that the market will become more accessible to mid-sized companies in the future.
