Europe’s IPO Market Lags Behind U.S. and Asia as Companies Favor M&A
Europe’s IPO market continues to underperform compared to the U.S. and Asia, with just 57 deals raising $5.5 billion this year—far behind the 153 U.S. IPOs that generated $17.7 billion. Tommy Rueger of UBS notes Asia has been "incredibly active," while Kevin Foley of JP Morgan describes Europe’s IPO pipeline as "muted."
Companies are increasingly turning to M&A for faster exits, frustrated by the lengthy IPO process and market volatility. Jonathan Murray of Mizuho highlights the risks: "One bad day can nuke valuations overnight." European indexes, such as the MSCI France, remain sluggish, further dampening investor appetite.