Bankers Anticipate Expansion of Europe’s IPO Recovery by 2025

Forex - Bankers believe that Europe's IPO recovery will expand in 2025. Over $19 billion has been raised through initial public offerings in European stock markets this year. This represents a recovery of more than 30% compared to the IPO volume of 2023. However, this figure still falls short of historical averages, including the peak during the pandemic and the previous decade. Bankers are optimistic that upcoming IPOs, such as HBX Group in Spain and Stada Arzneimittel AG in Germany, expected in early 2025, will pave the way for further deals later in the year and in 2026. Lawrence Jamieson, Co-Head of ECM for Europe, the Middle East, and Africa at Barclays Plc, stated, "Next year presents an undeniably challenging macroeconomic environment for IPOs, but the need for sellers, especially private equity sellers, to recycle capital back to limited partners will likely take precedence over everything else." Richard Cormack, Head of ECM EMEA at Goldman Sachs Group, added, "The reason we haven't seen more IPOs this year is that both sides of the table—the issuers and investors—have been somewhat reluctant. I think this is starting to resolve itself, and we're seeing convergence on all these different points, including the bid-ask spread."