FCF IPO Market Monitor H1 2017

The “FCF IPO Market Monitor” is the most comprehensive analysis of European IPOs, providing relevant valuation metrics (e.g. ratios, multiples), general information and performance data of European IPOs that have been issued within the last six months.

After a sluggish start into the first half of 2017, the number of European IPOs surged to 48 with an issuance volume totalling up to 11,853 EURm thanks to a strong performance of European markets. Among these, German companies including Aumann AG, Vapiano SE as well as Delivery Hero AG decided to join the trading floor. The German Trio represents approx. 6% of European IPOs and 10,5% of the issuance volume with their Medium and Large IPOs.

The Swiss healthcare-provider  Galencia Santé AG, French industrial service-provider ALD S.A., as well as the German food delivery-service Delivery Hero AG find themselves among the biggest issuances in the first half of 2017.

The majority of European IPOs comprise the industry sectors Consumer Discretionary (16), Industrials (12) and Biotechnology (6).

The „Large-IPOs“ segment (Issuance volume over EUR 250m) recorded a volume reduction of EUR 2,016m comparing to the EUR 10,431m issued in the second half of 2016. Given these size effects, its share decreased to 71% from 90%. As a result, the “Medium-IPOs” segment (Issuance volume between EUR 100m and EUR 250m) gained in share totalling up to 20%.

The „Medium-IPOs“ segment recorded the most issuances with 14, followed by Micro-IPOs (13) (Issuance volume between EUR 20m and EUR 50m), Large-IPOs (12) and Small-IPOs (9) (Issuance volume between EUR 50m and EUR 100m).

As a surprise, Spain leads in the „Large“ segment with 3 IPOs. The United Kingdom lost its position as the leading hub for IPOs with only 6 issuances, replaced by Sweden with 11. Interestingly, less IPOs were priced below the price range than in the last half-year.

The “FCF Small IPO Index”, which measures the development of the market capitalization of IPOs with an issuance volume between EUR 50m and 100m, outperformed its peer segments with an increase of 101%. However, all other FCF indices significantly profited from the positive performance of European leading indices in the first half of 2017.

The first trading day performances of the new issues was 7.2%, increasing the “Underprizing” by 2% compared to last half-year. Given the positive sentiment on European markets in the first half of 2017, all IPOs recorded a positive performance of 13.6% on average. Small-IPOs recorded positive gains of 31.3% (YTD) while Micro-IPOs disappointed with 0.8% compared to the whole market and larger segments.

The German Aumann AG continued its positive IPO debut with a YTD performance of 41.1%. Vapiano SE as well as Delivery Hero AG initiated their IPOs with a positive first day performance of 4.2% and 10.1%, respectively.

 FCF IPO Market Monitor H1 2017