* Best Q2 for European IPOs since 2007, with 145 IPOs raising
* Although traditionally quieter, Q3 proceeds are expected to reach
* Pulled IPOs likely to remain a feature of the environment as investors become more selective
The surge in IPOs since the second half of 2013 has now approached record levels as Q2 2014 posted the best Q2 performance since the financial crisis hit the capital markets, according to
Despite the mediocre aftermarket performance of some high profile listings, activity accelerated in June with 68 deals raising
"It's been over a year since the markets re-opened to IPOs, the longest run in recent years. We're now confident that we've entered a new era for companies wanting to go public and so as long as deals continue to perform, we see this positive trend set fair to continue.
"Given the continued strength of the IPO pipeline, the prospects for Q3 remain strong and are likely to continue rebound towards pre-crisis levels."
Private equity exits continue to feature prominently in IPO activity levels, particularly in
Compared to previous periods, activity is more evenly distributed with six of the continental
Consumer services and the finance sector (banking, real estate and insurance) each represented close to a third of proceeds raised thanks to four of the top ten transactions of the period, each. In
Alongside the successes, the number of pulled and postponed deals also reached a high point. 14 deals were shelved this quarter, which is equal to 9% of the announced IPOs, compared to three (4%) in the previous quarter.
"There's definitely a feeling of markets getting tougher, with investors rigorously testing equity stories and tougher pricing discussions. Given the number of companies looking to go public at the moment, we're bound to see some deals having to work harder to attract interest. It will take prime candidates to convince canny investors that they are "must-have deals."
Summer months are traditionally much quieter in terms of IPO activity. However, given the size of the pipeline,
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