Take a look at the IPOs that cemented the return in strength of European investors this past year.

A deeper look into the IPOs on Euronext markets in 2019

A strong second half of the year in Paris

While the beginning of 2019 might have shown a more subdued IPO intake for Euronext markets, the second half of the year revealed that the interest and desire to invest is still strong in European investors. 

Euronext Paris in particular saw several large international companies choose the French market to go public. Verallia, the world’s third largest producer of glass containers for consumer/food goods providers around the globe for over 100 years, listed on the French market in early October. The glass producer attracted interest from European investors, raising just under €900m at the IPO with an opening price of €27 per share.

                                                                            Applause and confetti for  Verallia’s listing ceremony in Paris

Only a few days later, Euronext Paris welcomed Boostheat, a fast-growing French tech company that specialises in the design, development and production of technologically advanced, energy efficient and sustainable heating solutions, and retails eco-conscious boilers in Europe, with an offering price of €14 per share. The operation yielded over €36m, an impressive figure for this young SME. These two offerings were quickly followed by Hoffmann Green Cement, a French manufacturer and distributor of low-carbon cement, which celebrated its IPO with a market capitalisation of €236m.

                               Senior Management of  Hoffmann Green Cement open Euronext markets in Paris to celebrate new listing

These initial offerings in October led the way for one of the biggest IPOs in France in the past 15 years by the second largest player in European gambling and lottery games, Française des Jeux. With a market capitalisation of just under €4bn, and a resounding international demand for trading shares, the operation became the largest IPO in France since 2005 when EDF (France’s largest producer and provider of electricity) raised over €7bn.

                                                                                       Française des Jeux’s listing ceremony in Paris

Amsterdam welcomes a host of foreign giants while Brussels cements new listing

On 11 September, tech giant Prosus, a global consumer internet group hailing from South African conglomerate Naspers, and one of the largest technology investors in the world, listed on Euronext Amsterdam. It opened with a staggering number of over 1.6 billion shares admitted to trading, set at €76. The high share price highlighted the expected weight of this IPO on European markets.

                                                                                     Watch the Prosus listing ceremony in Amsterdam

Renewed vigour on the Euronext Growth markets

Another market to host several IPOs this past semester was Euronext Growth, with seven listings since August. A few notable highlights: starting with Italian-based company Media Maker, which specialises in the production and distribution of branded content; La Perla, the Italian high-end lingerie manufacturer, which entered the market with over 105 million shares admitted for trading in early September; and followed in late November by Agripower France, a European leader in green anaerobic digestion (the disposal of biodegradable waste). The renewable energy equipment SME managed to raise €6m, an encouraging number for a company with a market capitalisation of €16m.  

With a market capitalisation of nearly €100bn, the South African company held the door open for the subsequent introduction of Belgium-based Aedifica, a company specialising in European healthcare real estate investments, and in particular housing for seniors with special care needs. The company, which is listed on Euronext Brussels, gained increased visibility and traction with European investors following its secondary listing on Euronext Amsterdam in early November. 

In Brussels, Euronext welcomed Titan Cement International, a multi-regional cement and building materials producer hailing from Greece. The company made a complementary listing in Paris and had a market capitalisation of €1.5bn at listing. It is now the third Greek company listed on Euronext markets.

                                                                                           Titan Cement’s listing ceremony in Brussels

A show of strength in the North

Since joining Euronext in June, the Norwegian stock exchange showed just how attractive its unique strategic and competitive positioning is for companies looking to list. Five companies that listed were in the top ten of listing amounts raised on all Euronext markets. The main market of Oslo Børs welcomed Adevinta, a global online classifieds company as its largest 2019 deal with a €3bn market cap at listing. The Oslo Børs Merkur market welcomed Kahoot!, a young SME offering a game-based learning platform, used as educational technology in schools and other educational institutions in October. With a market capitalisation of €460m and a user community of over 1 billion in more than 200 countries around the world, Kahoot! seems to be looking at a bright future.

In 2019, the Nordic exchange showed its extended strength with several strong new listings both from local and international companies and asserted its position as a key geographical Euronext location through diversified activity across its different markets: Oslo Børs, Merkur and Oslo Axess.

SOCIMIs continue to bring Spanish taste to Euronext

Three new SOCIMIs (Real-Estate Investment Trusts) joined the Euronext markets since July 2019, bringing the number of Spanish listed companies to five since the beginning of the year. Euronext also welcomed the listing of Merlin Properties on its Lisbon market. Merlin’s main activity is the acquisition (directly or indirectly) and development of urban real estate for lease, active management, operation and selective rotation of commercial property assets in Iberia: primarily in Spain and, to a lesser extent, Portugal. The company’s market capitalisation is around €6bn.

The second half of 2019 marked the return of the giants. Euronext exchanges saw six large-cap listings, including internet company Prosus and gambling company Française des Jeux.

These listings boosted total proceeds from new listings to €4.7 billion from 47 deals by the end of November.

Late 2019 saw a flurry of flotations of ‘cleantech’ companies providing solutions to environmental problems. This is a sector where European businesses play a key role globally, thanks to a combination of homegrown expertise and strong government interest in green issues. One example of this was Boostheat, a French company that makes eco-boilers; it listed on the Paris exchange in October. Twelve days later we saw the IPO of another French cleantech business in Paris: Hoffman Green Cement Technologies, which makes cement using less carbon than traditional methods.

September saw an interesting deal in another sector in which Europe leads the world: high-end style. La Perla Fashion Holding, a Dutch manufacturer and retailer of handmade Italian clothing, listed in Paris. This was a direct listing, whereby the company listed its existing shares, without using an underwriter.

International turbulence

Euronext had a good year for listings, though its IPO activity was relatively quiet throughout the beginning of the year. Finding the right time to float proved tricky in 2019, with trade tensions hitting business confidence, slowing international commerce, and buffeting stock markets. Across the global markets, a number of eagerly awaited IPOs were cancelled.

This relatively slower pace reflects uncertainty around the stability of the global economy. As a result, the International Monetary Fund forecasts worldwide economic growth of only 3% for 2019[1], the lowest registered level since 2009. Yet, several deals made in 2019 showed positive post-IPO performance from newly-listed companies. Despite the macroeconomic uncertainties, investors showed their continued interest in solid companies.

Healthy scepticism

We do not believe this turbulence reflects disenchantment with stock market listings as a whole, or calls into question their role in corporate fundraising. Instead, it shows a healthy desire to question the business plans and commercial prospects of individual companies – a tendency that should keep the IPO markets robust and healthy in the long run.

Looking ahead, we believe that 2020 is likely to be stronger for listing than 2019, both in Europe and around the rest of the world, if market conditions remain favourable as trade tensions ease and economic growth recovers. The resolution of the Brexit situation should also increase business confidence and listing activity by reducing uncertainty. The powerful forces that are driving the establishment, growth and floating of companies in sectors where Europe is strong will only grow more powerful. For example, concerns about pollution and global warming are rising, and governments are largely looking to the private sector to find practical solutions. In conclusion, the continent should see a healthy pipeline of listings as we continue our efforts to make the pipeline stronger.