The public equity markets have been highly active in H1 2020 as investors have stepped in to support listed businesses through the impact of COVID-19 with €65bn raised across 434 transactions in Europe.
IPO activity has been heavily impacted in H1 2020 which saw 28 deals compared to 53 in H1 2019, due to high levels of market volatility and also the practical aspects of conducting an IPO through lockdown.
That said, the markets have shown how resourceful and flexible they can be in times of adversity. There has been a swift shift towards virtual roadshows and a shortening in public marketing periods and roadshows, in order to minimise exposure through the volatility.
This was clearly evidenced by the €2.6bn IPO of JDE Peet’s by JAB in May demonstrating the tangible benefits of a differentiated and pure play equity story. This was followed by the IPO of Italian mask and filter manufacture GVS SpA raising €571m.
Looking forward, and also witnessing a highly active IPO market in the US driven by a resurgence of tech IPOs, we can see a number of candidates preparing for the markets, particularly in the tech and life-sciences space.