Europe’s IPO Drought Has Stock Exchanges Battling for Listings

(Bloomberg) — As fewer large companies opt to go public in Europe, the region’s stock exchanges are fighting harder to win the biggest listings.

Stockholm, Amsterdam, Zurich and London recently went head-to-head to vie for Hellman & Friedman’s initial public offering of Verisure. The Swedish exchange proved triumphant due to the €20 billion ($22.8 billion) security firm’s history in the country and the strength of the local investment community, according to people familiar with the matter.

Competition for the next major IPO is already underway. Amsterdam and London are also among the contenders to host software giant Visma, which could take place as soon as next year, the people said, who asked not to be identified as the information is private.

Europe — with its fragmented capital markets and relatively discounted stocks — is taking longer to recover from a years-long drought in IPOs than other regions. The continent has made up just 8% of global issuance so far this year compared with a yearly average of 16% for the last decade, according to data compiled by Bloomberg. Europe has seen relatively few large listings in recent years, with the biggest deal of 2025 so far raising just less than a billion dollars on the Stockholm bourse.

The muted volumes, compounded by a string of local champions floating in the US, have raised the stakes for regional bourses to look beyond their home markets for new listings, in a bid to offset outflows and rekindle capital markets activity.

“The last few years have been challenging for ECM, and when you have less activity the competition increases for those firms that are willing to list,” said Mathieu Caron, head of primary markets at Euronext NV which operates the Amsterdam bourse and several other venues across Europe. The firm assembled an international listings team in London last year, tasked with attracting issuers from outside its home markets.

New listings bring in fees, with the hottest IPOs drawing international investors to the exchange — improving liquidity and helping to attract further listings. Management teams or head offices may also be relocated, benefiting the wider economy, often making the choice of venue a political issue. With that in mind, exchanges across Europe are ramping up their efforts to entice IPOs.

“Competition between exchanges has definitely increased,” Adam Kostyal, president of Nasdaq Stockholm, agreed. “Around the bigger firms we have work to do, but we are certainly not sitting on the sidelines.” The Nordic region has been a relative winner in recent months, with Stockholm as the busiest capital city across Europe year-to-date as IPOs raised more than $1.6 billion.

 

Some European companies have looked to the US for better liquidity and heftier valuations. UK-based Arm Holdings Plc floated in New York two years ago in more than $5 billion IPO, while Swedish buy-now, pay-later giant Klarna Group Plc has filed for a potential US listing. 

This means European exchanges need to hustle for each opportunity.

“We proactively approach companies or their shareholders, like private equity and venture capital funds, and sometimes we’re invited to pitch for a listing,” Euronext’s Caron explained.

London has been hit particularly hard by a wave of takeovers and a number of high-profile defections to other stock exchanges. Most recently, Wise Plc said it plans to move its primary listing to New York. 

Charlie Walker, the deputy CEO of the London Stock Exchange, said the exchange has “seen a noticeable increase in interest from international companies in coming to London,” in emailed responses, without commenting further. Speaking to the BBC last week, Walker called for the UK government to encourage domestic investment to improve liquidity in public markets.

A spokesperson for Zurich bourse operator SIX Group AG said it sees “a good pipeline from several issuers across sectors and regions.”

Eyes on Verisure and Visma

Verisure’s IPO could be one of the region’s largest in years. The firm could seek a valuation of more than €20 billion ($22.8 billion) including debt, Bloomberg reported previously. Verisure drew interest from multiple stock exchanges because of its size and pan-European footprint. Formerly known as Securitas Direct, the company once traded in Stockholm before it was taken over by private equity. The business, known for its alarm systems, is now headquartered in Switzerland and employs the bulk of its workforce in Spain.

Amsterdam was the next closest contender for the IPO, while London and Zurich were both considered but eliminated earlier in the process, the people said. Verisure’s owner H&F declined to comment. 

Visma would also be a prized listing for European exchanges. The Norway-based company, backed by Hg Capital, was last valued at €19 billion in a stake sale in late 2023. Last year, the company generated €2.8 billion in revenues by supplying software solutions to companies including for invoicing and HR. Hg declined to comment. 

Europe’s exchanges and governments have undertaken a series of reforms to entice companies to their capital markets. London Stock Exchange Group Plc will allow stocks not trading in British pounds access to FTSE indexes, while Euronext has introduced a common prospectus amid efforts by the European Union to integrate its capital markets. 

Nasdaq made it easier for companies listed on its flagship US bourse to also list in Stockholm. Spain’s stock exchange, part of SIX, will let companies list on the exchange first and then pick their window to sell shares, letting them avoid market turbulence.

“It’s important for European exchanges to win international listings because many are shrinking,” said Martin Steinbach, IPO leader at consultancy EY for Europe, the Middle East, India and Africa.

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