Expect More European IPOs: Goldman Sachs
A resurgence in European initial public offerings (IPOs) this year, seen recently with the Moleskine's listing in Milan, will continue with further offerings in Germany in the second quarter, according to Goldman Sachs.
"I think that if the first quarter was all about IPOs largely from the U.K., notwithstanding Moleskine, I think the second quarter is going to be largely about deals substantially from Germany," Alasdair Warren, head of Europe Equity Capital Markets at Goldman told CNBC on Thursday, without mentioning names.
"I think we're going to see a number of significant issuers there."
Warren said that given weak European data and the Cyprus crisis, there was likely to be more issuance from northern Europe than southern Europe.
Warren said that the success of U.K.IPOs in recent months – such as Countrywide and HellermannTyton – would encourage issuers to go ahead with new listings in the coming months. "A number of them were looking at the five or six big deals that were coming in the first quarter to see how they went, how well subscribed they were, where they traded, where they priced within the range," Warren said. "And I think the general conclusion is that was quite encouraging."
Estate agency Countrywide's shares are currently up 14.3 percent from its IPO in mid-March,while HellermannTyton, the cabling equipment maker, is currently trading 0.8 per cent higher from its initial issue price.
According to data from Dealogic, around $24,8 billion has been raised globally in new equity from IPOs this year to date. Of that, European IPOs accounted for $5.4 billion, up from just $3.3 billion last year.
Last week,Xavier Rolet, CEO of the London Stock Exchange, told CNBC that "most IPOs that have come to the market in the last six to nine months are up 15 to 20 per cent in some cases."
While Moleskin's IPO has been rather tepid, with shares closing 1 percent below their issue price on Wednesday, Warren said it was too early to conclude on the success of the offering.
"You can't judge an IPO by the first two days of trading. And if you look at other transactions, often times first couple of days or the first week you might see some weakness and then the stock performs."
"Personally I don't think you can read too much through to what this will mean for other IPOs yet. Let's see how it looks in a week or two."