Banks are accelerating the marketing timeline for initial public offerings (IPOs) across Europe to protect new listings from the volatility that has influenced global equity markets since the return of Donald Trump to the White House. Recent data from Dealogic reveals that the average duration for bookbuilding—a phase where banks solicit bids from investors following an IPO announcement—has plummeted to an unprecedented average of five days this year, a significant decrease from ten days in 2022.
This trend is largely influenced by a prevailing nervousness in the market, as extended marketing periods risk exposing IPOs to sudden swings in market sentiment. A striking example is the recent IPO of the Czechoslovak Group (CSG), Europe’s largest defense listing to date, which achieved a valuation of €33 billion on its debut in Amsterdam last month after a mere three-day bookbuilding period. Similarly, Austria’s Asta Energy was marketed for just four days, ultimately seeing its shares surge by 46% on the first trading day in Frankfurt.
Antoine Noblot, the head of equity capital markets for northern EMEA at BNP Paribas, described the post-financial crisis landscape for European IPOs as one focused on “de-risking.” This shortening of bookbuilding periods has not been exclusive to Europe—data from the US indicates a similar trend, where the average marketing period is also nearing record lows. The shift was notably accelerated by the Covid-19 pandemic, which introduced virtual investor meetings and further emphasized rapid engagements with potential investors well in advance of public announcements.
Strong investor demand for European assets has facilitated this dramatic compression of bookbuilding durations. Banks have increasingly prioritized direct engagement with potential investors in the lead-up to IPO announcements. Noblot noted that for the CSG deal, BNP Paribas engaged with over 150 investors for several months beforehand, cultivating a sense of the bidding landscape prior to the official bookbuilding phase. This approach has allowed banks to gain insight into potential pricing and identify the top investors ahead of time.
Market volatility has been a concern, particularly following US President Trump’s controversial policies, including “liberation day” tariffs that hampered global deal-making and prompted companies to reevaluate their strategies. Recent political tensions, including Trump’s attempts to acquire Greenland, have only added to the unease in equity markets. This environment has led companies like software group Visma to contemplate postponing their London IPOs, while Wall Street’s Liftoff Mobile recently delayed its own IPO, citing unfavorable market conditions.
Anvita Arora, global co-head of equity capital markets at Société Générale, emphasized the collective shift towards tighter execution windows as a strategy to mitigate exposure to unexpected market turbulence. This move is aided by a trend among global investors looking to diversify their portfolios away from an over-reliance on US assets, increasingly turning their attention to Europe.
Moreover, the strong demand for IPOs has allowed firms to secure cornerstone investors—key participants who lock in a significant portion of the offering—before going public, adding an extra layer of security to launches. Asta Energy successfully obtained commitments from notable cornerstone investors like Siemens Energy and BNPP Asset Management, while the CSG deal saw commitments totaling €900 million from BlackRock and a subsidiary of the Qatar Investment Authority.
As the IPO landscape evolves, the current strategic focus among banks is clear: “let’s get it done and secured before we broaden things out,” as Arora articulated. This approach echoes earlier patterns seen during the pandemic when IPOs began to rebound, notably with major listings like JDE Peet and The Hut Group, which also leaned heavily on cornerstone investment to foster stability.
Finally, Stephane Gruffat, global head of equity capital markets syndicate at Deutsche Bank, pointed out the significant shift towards private-side marketing in the IPO process, highlighting that in certain cases, nearly all preparatory work can be completed before a public announcement is made. This evolving landscape showcases a decisive strategy to navigate the complexities of global capital markets amidst prevailing uncertainties.
