Where have Europe’s IPOs gone?

Author: Jimmie Franklin | Published: 21 Jun 2019

New figures have highlighted record lows at the London Stock Exchange, with political volatility and new regulation being seen as the driver of this stagnant environment. An overall disappointing first quarter for the EMEA region appears to have left investors cautious about when to make the right move.

"The key reason for a poor showing thus far is Brexit, and the chokehold it has created around capital raising across the region," said Adam Farlow, head of EMEA capital markets at Baker McKenzie. The research undertaken outlines how Brexit, coupled with lower economic and industrial activity, has seen capital raising in the UK market down 46% from $4.9 billion in H1 2018 to $2.7billion in H1 2019.

"Even in the case of places that do not have an obvious connection to Brexit, just the volatility that is associated with the lack of clarity is stifling capital-raising across the region....