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BVB did not manage to draw any listing in the first semester
The Bucharest Stock Exchange (BVB) did not draw any public offer (IPO) initiated in the first half of this year, although there were companies which stated their interest in financing through such operations, in exchange showing preference for the bonds issues, according to a study made by PwC which shows the fact that on the capital markets in Europe the value of IPO launched dropped by 47% at 12,1 billion euro, during the reference period, as compared to the first semester of 2018.
According to the IPO Watch Europe Q2 2019 report, made by PwC, the same tendency of dropping was recorded and the number of public offers where the decline was 43.8% up to 53 operations, while the average value of an operation dropped by 20%, at 181 million euro.
At world level, the value of the public offers dropped by 28% in Q1, as compared to a similar period of last year, at 82,8 billion dollars.
‘After a first quiet quarter, the European market registered a coming back in Q2 when, although there were fewer tradings, the value was significantly bigger, the first five IPOs getting 7.4 billion euro. In the context of the Brexit, and global uncertainties caused mainly by the discussions regarding the commercial treaties, Europe is facing a drop in the interest of investors who, probably, will not change this year in a significant way, thus the decreases in the first part of the year could be recovered’ Sorin Petre partner PwC Romania said.
The financial sector is the first in the top of launching initial public offers, with 43% of the total (5.18 billion euro) followed by that industrial with 25% (4.39 billion euro) and that of services with 19% (2.26 billion euro).
Similarly, London (London Stock Exchange –LSE) was the stock exchange preferred by the companies which chose to finance themselves through such operations, getting 42% of the total value of the IPOs launched in the first part of the year. Otherwise, the London capital market was the only one which recorded a growth of the initial public offers in Q1 against the same interval of 2018, both as volume and as value (+5%).
Unfortunately, the BVB did not manage to draw any IPO in the first six months of the year.
‘Although there were companies which showed their interest in financing through the BVB in the first part of the year no listing happened. In the similar period of 2018, there were two such operations. Possibly due to the events at the end of last year (OUG 114) such decisions were postponed. In exchange, we notice a preference for the bond issues. The second quarter started better, with the listing of iHunt Ploiesti on AeRO’ said Ileana Gutu, senior manager PwC Romania.
In the top of capital markets in Europe, according to the value in Q1 were: London Stock exchange – 16 IPOs worth 5.1 billion euro, Borsa Italiana – 9 IPO worth 2.1 billion euro, SIX Swiss Exchange – 3 IPO worth two billion euro.
The biggest IPOs in Europe as value in Q1 were Nexi SpA (Borsa Italiana) – 2.05 billion euro, Network International Holdings (LSE) – 1.41 billion euro and Stadler Rail AG (SIX Swiss Exchange ) – 1.35 billion euro.
The study included the main 14 capital markets of Europe, the UK, France, Turkey, Poland, Spain, Belgium, Switzerland, Italy, Austria, Germany, Denmark, Sweden, Norway and Finland.