DUBLIN IS WELL positioned to profit from a growing European market for company floatations that was worth €14.4 billion last year, according to consultancy firm PwC.
Commenting after the release of figures showing that the value of European IPOs during 2013 jumped by 180 per cent, PwC transaction services partner Denis O’Connor said that “Dublin is in a strong position to secure high calibre domestic and international IPOs.”
He said that a long-awaited IPO “renaissance” had arrived, and that cities and exchanges will have to fight to attract companies to float with them as volumes and competition increased.
A sizable pipeline of floats will provide plenty of fodder in the near-term for the Irish markets.
Citing the recent Dalata Hotel Group IPO and the forthcoming Valeo Foods floatation, O’Connor also said property bundles known as REITS and private equity-backed companies were “well advanced” in their IPO preparations.
Europe wide growth
Across the continent, IPOs increased in value by €9.3 billion to €14.4 billion as numbers of deals grew from 73 in 2012 compared to 103 for 2013.
Proceeds also experienced rapid growth of 135 per cent, adding up to a total of €26.5 billion for the year. More than 100 companies floated during the last quarter of 2013, accounting for more than half the total proceeds raised during the year, with the average deal size doubling.
PwC said that retail and consumer companies will continue to come to the market during first half of 2014 thanks to strong Christmas trading results.
O’Connor said that IPOs are primed for a period of “renewed and sustained growth”, with banks and energy and transport infrastructure companies set to come to the market alongside health and postal sector services.
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