Global uncertainty hits European flotations market

Second-quarter European flotation proceeds slid 26 per cent compared with the same quarter of last year as initial public offerings (IPOs) were reined in by 'global uncertainties' including the EU referendum, a new report out today says.

PwC said the London IPO market was 'especially impacted'. Picture: Daniel Leal-Olivas/AFP/Getty Images

London was “especially impacted”, down 66 per cent to €1.2 billion (about £900 million) and representing only 11 per cent of European IPO activity, says the report from business advisory and accountancy major, PwC.

The rest of Europe fared better, with IPO proceeds down 6 per cent to €9.7bn. PwC’s latest IPO Watch predicts that flotation proceeds are unlikely to exceed €25bn by the end of 2016 following the UK’s Brexit vote – less than half of 2015 when €57.4bn was raised by companies seeking a public listing.

However, the group says there may be an “uptick” in activity towards the end of the year if economic conditions improve.