For us in the Baltics, an initial public offering (IPO) has long ceased to be a viable option to consider either as an exit mechanism for a financial investor, or as a serious alternative to raising additional capital. Only a selected few in the region have chosen this route lately, although rumours persist about several Baltics-based companies at least contemplating an IPO. And some of them apparently are not happy with the domestic prospects and might be looking at the exchanges elsewhere in Europe.

The recent IPO Watch Europe Q1 2015, a full version of which is available here, reports that 81 companies across Europe have raised a combined EUR 16.4 billion in initial public offerings during the first three months of this year, up from 68 IPOs and EUR 11.4 billion in the corresponding period in 2014. Out of those 81, according to the report, 18 companies have raised amounts less than USD 5 million (EUR 4.62 million). Also, from the ten largest IPOs by value in Europe, seven have involved companies backed by private equity investors, and this trend is expected to continue during the year despite the words of caution about the valuation levels of trade sale transactions becoming increasingly attractive.

The Baltic bourses are listed under the NASDAQ OMX umbrella and have not been reported separately. Not that there has been that much to report anyway. When looking at a wider region of Central and Eastern Europe, only Warsaw has seen some IPO activity with two companies raising a combined EUR 8 million – EUR 7 million on the main and EUR 1 million on the alternative market.

With the overall IPO activity in the CEE at fairly depressed levels this year, the Hungarian Wizz Air, an air carrier, has actually succeeded in breaking into the ranks of top 10 European IPOs by raising EUR 419 million, including the so called “greenshoe” (an over-allotment option that gives the right to sell more shares than originally planned if the demand for a security issue proves higher than expected), on the London main market. This success is at least partially attributable to the sharp drop in oil prices that have increased the investors’ appetite for energy-intensive businesses.

In terms of money raised through IPOs the year has taken off quite strongly. But it remains to be seen whether this level of activity and the volumes are going to be sustained during the rest of the year.


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18-01-2018, 12:00
Edgars Skrinda
wrote: Дружественный Кредит для бизнеса

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