Uptick in Listings Revives Investor Interest
Europe’s initial public offering (IPO) market is witnessing a rebound following months of sluggish performance. The number of new listings has increased sharply, with funds raised more than doubling year-over-year. Notable IPOs, including Spain’s Puig Brands and Switzerland’s Galderma, each secured around €2 billion, highlighting a renewed confidence among investors in European equities.
Private Equity-Backed Companies Lead the Way
A key driver of the revival is the surge in IPOs from private equity-backed firms. For instance, security company Verisure aims to raise €3.1 billion on the Stockholm Stock Exchange, potentially marking one of Sweden’s largest IPOs in recent years. Proceeds are planned for debt refinancing and acquisitions, illustrating a strategic use of public listings as exit options for private equity investors.
Market Caution and Future Prospects
Despite the positive momentum, companies are offering lower valuations to entice investors, as demonstrated by Klarna’s discounted IPO. Analysts remain cautiously optimistic for the remainder of 2025, expecting several significant listings that could further energize the market. Overall, Europe’s IPO landscape appears poised for a gradual recovery if investor sentiment and macroeconomic conditions continue to improve.
