The total value of The Initial Public Offerings (IPOs) conducted on European exchanges in 2023 was 10.2 billion euros. This is a decrease of 35% compared to the previous year (15.6 billion euros) and 86% compared to 2021 (75.0 billion euros).
Despite the ongoing geopolitical and macroeconomic uncertainties related to the condition of the banking system in the USA, the fight against inflation, and an increase in geopolitical tensions, the main European and American markets ended the past year with double-digit growth in key indices. Meanwhile, the main Polish indices turned out to be among the world’s strongest, and in December we witnessed the first IPO in over two years on the primary market of the Warsaw Stock Exchange, where the company Murapol SA debuted.
Review of 2023 on the Warsaw Stock Exchange (GPW)
In 2023, there were 15 IPOs on the Warsaw Stock Exchange (14 of which were on the NewConnect market), compared to 16 IPOs in the previous year (all Warsaw debuts in 2022 took place on NewConnect). The total value of the offers was 418 million PLN (95.9 million euros), an increase of 428% compared to the previous year, when the total value of the IPO was 79.1 million PLN (17.3 million euros). The increase in the value of the IPOs is mainly the effect of the IPO of the company Murapol SA, whose offer accounted for 87% of the total value of all offers on the GPW in 2023. The debut of this company is undoubtedly the most important event of the domestic parquet, considering that the previous IPO (STS company) took place in December 2021. In the case of the remaining offers (all on the unregulated NewConnect market), their value was 54.4 million PLN (11.9 million euros), a decrease of 31% compared to the previous year.
The offer of Murapol SA, a company operating in the developer industry, was 363.5 million PLN (83.9 million euros), excluding the stabilization option. The second and third places went to the nanotechnology company QNA Technology SA – an offer worth 15.6 million PLN (3.5 million euros) and the company Scanway SA, which deals with the production of optical equipment – an offer worth 11.4 million PLN (2.5 million euros).
“After more than 2 years, there was a debut on the main GPW market, which is a huge plus because every next company thinking about an IPO saw that with a well-organized process, it currently has a chance to place a large offer. However, the past few years did not allow us to get accustomed to stability. Investors are expecting the debuts announced in 2022 and the return of suspended and postponed transactions, preparations for the debuts of portfolio companies of private equity funds, and, as shown by Murapol, the revitalization of companies from industries other than technological ones such as real estate, trade, or health protection ” – says Kamil Wardzyński, senior manager in the PwC capital markets team.
European Initial Public Offerings Market in 2023
According to data obtained by PwC, the total value of IPOs in Europe last year amounted to 10.2 billion euros and fell by 35% (5.4 billion euros) compared to 2022. A total of 107 companies (compared to 102 in 2022) made their debuts on European parquets, and one so-called mega offer was noted, i.e., an IPO whose value exceeded 1 billion euros – Hidroelectrica on the Bucharest Stock Exchange. The debut of the Romanian company remained the largest offer in Europe and the fourth largest offer in the world (the value of the offer was 1.9 billion euros). The next places were taken by SCHOTT Pharma and Thyssenkrupp Nucera, both debuting on the German Deutsche Börse with offers worth 0.9 and 0.6 billion euros, respectively.
“For the second year in a row, the European IPO market is still idle. The total value of IPO offers in 2023 fell compared to the previous year, reaching the lowest level since 2012. Of the European markets analyzed by PwC, the Istanbul stock exchange turned out to be the most active in terms of the number of debuts, with 20 IPOs each exceeding 50 million euros in value. Despite low sentiments for most of the year, there were several significant debuts of such companies as Hidroelectrica and SCHOTT Pharma in Europe. Hopes for a return of good times have risen, and we are seeing signals indicating a possible revival in the IPO market. However, it should be borne in mind that due to, among other things, the political event calendar, the so-called “IPO windows” will be very short this year, forcing very good preparation of issuers hoping for successful transactions” – adds Bartosz Margol, partner in the PwC capital markets team.
