European IPOs raise more than E50bn

European public markets continue to surge from strength to strength following a 39% increase in the number of new floats in 2005 compared to 2004. PricewaterhouseCoopers’ IPO Watch Europe – Review of the Year 2005 found almost double the amount of money was raised in last year’s IPOs, €51bn compared to €28bn, and notes the introduction of new European capital markets regulation in 2005 did little to dampen enthusiasm.

The European exchanges also outperformed the US in terms of money raised for the first time since PricewaterhouseCoopers started its survey in 2001. New US offerings raised €27bn, a €10bn drop from 2004.

Two large French floats helped the large value for Europe: the €7bn EdF IPO and the €3.5bn Gaz de France floatation. International IPOs also increased, raising €9.6bn, mainly on the London Stock Exchange’s Alternative Investment Market with international companies raising €7.4bn and other European companies listing there raising €3.2bn. (See the next issue of EVCJ for an in-depth analysis of Europe’s IPO climate.)