European biotechs favor IPOs in the U.S. over Europe

The activity of US Biotech IPOs has steadily increased within the last five years, having registered a record-high in 2020 with EUR 15.0bn raised in 66 IPOs.

The situation in Europe draws a different picture, where IPO activity has been very volatile in the same period.

Nevertheless, current traction in public capital markets triggers higher activity of European companies to float on stock exchanges.

Since the beginning of this year, 7 European companies went public on European stock exchanges with a transaction volume of EUR 965m, while 11 European companies have been floated in cross-border IPOs on US exchanges with a volume of EUR 1,704m.

Not surprisingly, US capital markets have become increasingly attractive for European companies to float on US stock exchanges while less European companies favour an IPO on European stock exchanges.

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