GO
Loading...

Global IPOs set for take-off

Brokers at the German Stock Exchange in Frankfurt, Germany.
Daniel Roland | AFP | GettyImages
Brokers at the German Stock Exchange in Frankfurt, Germany.

IPO (initial public offering) volumes will pick-up further towards the end of the year, according to a new report by Ernst & Young (EY), with German and British companies leading the way as Europe's recovery gathers strength.

EY's "Global IPO trends" report found that world IPO activity fell in the third quarter of 2013, with 4 percent fewer deals compared with the same period last year. But it forecast that volumes would pick-up again in the fourth quarter, with between 200-250 listings taking place, generating proceeds of around $30-40 billion.

"Despite a comparatively quiet third quarter — in line with historical trends of slower activity over the summer months — global IPO activity is expected to lift through the remainder of the year and into 2014," Maria Pinelli, vice-chair of strategic growth markets, said in the EY report published on Wednesday.

"The uplift in activity will vary from region to region both in terms of timing and pace. The U.S. market is expected to continue its strong momentum and we expect stronger IPO activity from European exchanges, especially from U.K. and Germany, as well as from South East Asian exchanges."

Year-to-date, the U.S. has already surpassed its total number of IPOs for 2012, with the highest biotechnology and pharmaceutical volumes since 2007. This year's floats include Envision Healthcare Holdings, the largest debut of the third quarter, which raised $1.1 billion on the New York Stock Exchange.

Meanwhile, 30 European companies are expect to debut in the third quarter of 2013, with expected proceeds of $3 billion. Real estate led the way, driven by the region's two largest floats in the quarter, Frankfurt's Deutsche Annington Immobilien and London's Foxtons Group.

(Read more: Foxtons valued at $1 billion in London listing)

"With economic conditions stabilizing and regional debt markets steadying, market volatility has subsided and valuations are improving. We believe the conditions are right for an increase in public listings in Europe in the remainder of 2013," said Martin Steinbach, EY's head of IPO for Europe, the Middle East, India and Africa.

EY's report came amid rising hopes of a recovery in Europe, following a string of positive economic data releases this summer, and after official data in August revealed the euro zone grew by 0.3 percent in the second quarter from the first, signaling the end of the longest recession in continental Europe in over 40 years.

(Read more: Europe at a turning point: This chart shows why)

But despite increasingly bullish sentiment, Pinelli said pricing remained crucial to the success of stock market debuts.

"Investors have been encouraged by rising valuations but moving forward, pricing remain a critical concern. In this market, more than ever, firms need strong brand names or earnings track records to obtain appropriate pricing and secure investor support."

—By CNBC's Katy Barnato

Contact Economy

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More