European capital markets are witnessing a resurgence as a wave of companies embark on initial public offerings (IPOs), signaling a potential revival after a period of stagnation. Recent activity has been marked by significant listings, with security services firm Verisure successfully raising €3.2 billion, marking the largest European IPO in three years. Simultaneously, Germany’s Ottobock, a leading prosthetics manufacturer, completed an IPO that generated €700 million, making it the largest offering in the country this year.
The uptick in listings is not limited to these major players. In just the past few weeks, companies like Swedish digital bank Noba, automotive business Aumovio from Germany, skin laser technology firm The Beauty Tech Group, and classifieds platform Swiss Marketplace Group have all taken the plunge into public markets. Several major IPOs are on the horizon, including a €10 billion listing for Mobile.de, a German auto marketplace set for Frankfurt, along with anticipated listings for Princes Group, a UK tinned food brand, and Shawbrook, a specialist lender in the UK.
Industry executives and their advisors point to a shift in the market landscape, as geopolitical and economic concerns—particularly those stemming from US tariffs—have begun to abate. This improved climate is fostering a more congenial atmosphere for IPOs, following a stretch during which many offerings were stalled. The stock markets, now trading at record highs, provide additional reassurance for companies contemplating public listings. Richard Cormack, head of EMEA equity capital markets at Goldman Sachs, remarked on the transformative momentum, stating, “We’re breaking the deadlock,” and suggesting that the market is poised for a revival cycle.
Martin Thorneycroft, global co-head of equity capital markets at Morgan Stanley, echoed this sentiment regarding Verisure’s significant IPO, emphasizing its potential to catalyze interest in other large-cap, high-quality assets preparing for public offering.
Despite the recent flurry, European stock exchanges have faced challenges in attracting new listings overall. In 2023, there have been only 76 IPOs recorded, the lowest figure since 2009, as per Dealogic data. The trend has seen private equity firms opting to retain ownership of their companies longer due to weak demand, while others, like the Swedish fintech Klarna, have favored US markets for their higher valuations and more extensive capital opportunities.
In response to this slowdown, European policymakers are actively seeking to stimulate domestic investment in local enterprises and motivate founders to pursue listings within the region. Data indicates that Sweden’s Nasdaq has led the way in IPO fundraising this year, securing $6.7 billion, while the Frankfurt Exchange and the Swiss SIX have each gathered $1.2 billion. Stephane Gruffat, Deutsche Bank’s global head of equity capital markets syndicate, expressed optimism about the widening activity, noting that demand is increasing in the UK, Germany, and Spain, particularly from retail investors. The evolving market dynamics suggest a new chapter for European IPOs may be on the horizon, encouraging companies to explore public offerings once more.
