Things are looking up for Europe’s initial public offerings market in 2018.
As companies from Siemens to Deutsche Bank prepare to tap investor demand with billion-dollar-plus share sales, analysts expect another busy year in equity capital markets.
Optimism over economic growth will likely allow political concerns to take a back seat, even as negotiations between the UK and the European Union over Britain’s secession from the bloc gather steam.
The region has had a strong showing in 2017 — companies and their shareholders have raised about $55 billion (€46 billion) in IPOs year-to-date, according to data compiled by Bloomberg, up from roughly $37 billion in the same timeframe in 2016 and eclipsing peers in North America.
Europe’s haul in a year peppered with major regional elections in addition to Brexit talks shows investors are willing to assess individual share sales undaunted by broader uncertainties, according to Ken Odeluga, an analyst at City Index in London.
“We expect 2018 IPO activity will surpass that of 2017 and will be more diverse in terms of geography, sectors, sponsor assets and corporate carve outs,” Achintya Mangla, head of EMEA equity capital markets at JPMorgan Chase, said by email. “A market environment that is very constructive is helping build a very strong pipeline.”
Here are some of the biggest IPOs investors are expecting in 2018, including African and Middle East names considering listings on European exchanges (in alphabetical order):
Silicon Valley-backed Dutch startup Adyen is considering an IPO as early as next year, people familiar with the matter said this month.
No final decisions have been made and the company could choose to stay private for longer, the people said.
Iconiq Capital, a multifamily wealth-management firm whose investors have included Facebook Chief Executive Officer Mark Zuckerberg and Twitter co-founder and CEO Jack Dorsey, invested in Adyen in 2015, valuing it at $2.3 billion at the time.
Avast Software, the private equity-owned maker of antivirus software, has hired Rothschild as it explores an IPO, people familiar with the matter said last month.
Part of Avast could be listed in a transaction of as much as $1 billion, although no decision has yet been made, the people said. A sale could value the company at about $4 billion, according to Reuters.
Belgium’s government has picked investment banks to advise on an IPO for Belfius that people familiar with the matter said could raise about €2.5 billion.
Bank of America, Citigroup, JPMorgan and UBS will work with local banks on the share sale.
The listing is likely to value the lender at more than €8 billion based on a multiple of about 0.9 times its book value and will probably take place next year, the people said.
B&S is considering an IPO that could value the Dutch consumer-goods wholesaler at about €2 billion, people familiar with the matter said in September.
ABN Amro, ING and Morgan Stanley have been selected to work on the sale, along with Deutsche Bank and Cooperatieve Rabobank, the people said.
An IPO in Amsterdam could raise more than €500 million, they said.
Saudi Arabia’s The Olayan Group is considering an IPO for Chipita that could value the Greek maker of baked goods at about €1 billion, people familiar with the matter said in November.
Olayan is considering venues including London for an IPO in 2018, though no final decisions have been made and plans could change, the people said.
Deutsche Bank Asset Management
Deutsche Bank expects to raise about €2 billion from selling a quarter of its asset management business in an IPO, people familiar with the matter said last month.
The partial offering would value the unit at about €8 billion and account for substantially all the capital the bank had expected to raise through asset sales under a turnaround plan unveiled in March.
African telecommunications group Econet is considering selling shares on the London Stock Exchange next year at a valuation of about $8 billion after combining new and existing assets, people familiar said last month.
Blackstone-backed private school operator GEMS Education plans to hire investment banks including Bank of America and Credit Suisse for an IPO in London next year, people familiar with the matter said this month.
GEMS could fetch a valuation of about $4 billion or more in a share sale, people familiar said in June.
Carlyle, the owner of Dutch lingerie and swimwear brand Hunkemoeller, is working with advisers from Rothschild as it considers an IPO for the company in Amsterdam, people familiar with the situation said in November.
An IPO is a possible alternative to a partial or full sale of the business, which has also been under consideration. A sale of Hunkemoeller could value the business at about €600 million, people familiar said in October.
German truck-brake maker Knorr-Bremse has picked JPMorgan and Deutsche Bank to lead a planned IPO, people familiar with the matter said this month.
The share sale could value the company at as much as €15 billion, according to the people, and is likely to happen next year in Frankfurt.
Lone Star Funds is considering an IPO of UK petrol-station operator MRH that could value the business at about £1.5 billion (€1.7 billion), people familiar with the matter said in October.
Sky News reported in November that Lone Star Funds has hired bankers at Citi, JPMorgan and Numis Securities to oversee the London IPO, and that the flotation is planned for next year, although the exact timing and a final decision about whether to go ahead have yet to be taken.
Siemens will list its healthcare unit in Frankfurt in the first half of 2018 in what is set to be one of the biggest German IPOs in recent history.
Frankfurt’s high liquidity and importance as a trading venue, particularly after the UK’s decision to leave the EU, were the reasons behind the decision to list there, the company said in November.
The entire division could be valued at €30 billion to €40 billion, according to Bloomberg Intelligence, implying the listed shares would be worth between €4.5 billion and €10 billion.
Sok Marketler Ticaret
Yildiz Holding, the owner of Godiva chocolates, is planning to sell shares in its Turkish discount grocery unit Sok Marketler Ticaret through a London IPO that may value the company at $3 billion or more, people with knowledge of the plans said in November.
Yildiz, which holds a controlling stake at the Istanbul-based retailer, is holding talks with international banks and may choose three or four to manage the sale, said the people.
The owners of Springer Nature, the publisher of science magazines Nature and Scientific American, have picked JPMorgan and Morgan Stanley to work on an
IPO that could value the business at about €8 billion, people familiar with the matter said last month.
The listing might take place in Frankfurt next year, the people said, and the company could also consider a sale.
Danish biopharmaceutical company Symphogen is considering an IPO that could value the business at as much as $1 billion, people familiar with the matter said last month.
Symphogen, which develops recombinant antibody mixtures, is speaking to advisers about a share sale next year, the people said.
The final valuation could change depending on investor demand and Symphogen could choose to remain private for longer, they said.
Testa Residencial Socimi
The owners of Testa Residencial Socimi have picked Credit Suisse, Goldman Sachs and JPMorgan to lead the real estate company’s IPO, people familiar with the matter said in November.
Testa could list in Madrid as early as the first half of next year and be valued at €2 billion in an IPO, the people said.
The IPO might raise about €800 million and Banco Santander has also been selected for a lead role, they said.
Oil trader Vitol and private equity firm Carlyle mandated banks to prepare an IPO for Varo Energy that could value the European refiner and service station operator at about €2 billion, people familiar with the matter said last month.
Credit Suisse, Deutsche Bank and ING have been hired for the listing, the people said, while ABN Amro has been appointed an independent adviser on the potential deal.
Varo is expected to list on the Amsterdam Stock Exchange, the people said.
Vivo Energy Investments
Vivo Energy Investments, a joint venture between Vitol and African private equity firm Helios Investment Partners, is considering a stock market listing, a person familiar with the matter said last month.
The company is working with investment banks for a London IPO over the coming months that could value it at more than $3 billion, the Wall Street Journal said in October, citing unidentified people familiar with the matter.