European IPO Rebound Gathers Pace With Biggest Quarter Since 2022

(Bloomberg) — A strong start for Europe’s initial public offerings in 2024, driven by a handful of high-profile newcomers to the market, bodes well for a rebound in listings in the region for the rest of the year.

With $5.7 billion raised via first-time share sales this year up to March 27, Europe is on track for the largest quarterly volume in 18 months, according to data compiled by Bloomberg. Companies worth billions are dusting off their listing plans in the hopes of tapping the markets as soon as the second quarter.

Skincare company Galderma Group AG’s $2.6 billion offering by itself accounted for almost half of that first-quarter total, with perfume retailer Douglas AG, Athens International Airport SA and German industrial machinery maker RENK Group AG making up much of the rest. 

While some companies that shelved listings last year are being enticed back by stock markets reaching record highs, others have been more hesitant. The number of IPOs in Europe is still running at the lowest level in five years, according to data compiled by Bloomberg. But the pipeline is opening, with more listings slated to come to market after the Easter holiday, according to bankers.  

“We are seeing activity in Europe revert to more normalized levels, with 2025 already gearing up to be a very busy year,” said Richard Cormack, co-head of equity capital markets for Europe, the Middle East and Africa at Goldman Sachs Group Inc.

Companies weighing a stock listing have also been encouraged by the strong performance of some IPOs that have already taken place this year, with Galderma jumping 18% above its IPO price. 

Galderma’s success stands out, given European IPO activity has been subdued for almost two years, and could well encourage other candidates such as sneaker brand Golden Goose SpA, car distributor Astara and beauty group Puig to make their debuts. But it’s not all rosy as Douglas has slumped 17% since its debut, with investors citing the company’s debt as a concern.

“A confluence of good companies, increased investor confidence in market outlook and improved performance in their own funds – combined with a narrowing of the bid-ask spread – is leading to a resurgence in European IPO activity,” said James Manson-Bahr, head of Morgan Stanley’s equity syndicate for EMEA. 

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