LONDON (Reuters) – Europe’s initial public offering (IPO) market is unlikely to see any new applicants until the summer as political uncertainty has disrupted markets, bankers say.
This week, Italian luxury sneaker brand Golden Goose and Spanish fashion retailer Tendam both postponed their IPOs, citing the impact on markets of upcoming early legislative elections in France.
The dissolution of the National Assembly decided by President Emmanuel Macron, in response to the victory of the far right in the European legislative elections, brought down the euro, the shares of large French companies and the price of sovereign bonds of France.
Last week, the Euro STOXX 50 volatility index reached its highest level since October.
On Tuesday evening, Golden Goose, which makes $500 sneakers, and its owner, the Permira fund, decided to withdraw the IPO they had announced at the end of May.
A decision linked both to the difficulties of the luxury sector and to market conditions as Permira experienced a setback in the listing of another of its companies, the British boot manufacturer Dr Martens, whose shares fell by 78% since its IPO in 2021.
Permira declined to comment.
Separately, summer is typically a quieter time for IPOs and some bankers have warned that investors are being more selective about which deals they back.
Several bankers emphasize, however, that the market is not closed to transactions, since share sales volumes have recovered since the start of the year.
For example, this week the company Europastry, which specializes in frozen bakery products, announced its intention to go public in Spain and raise at least 225 million euros.
“I don’t think the market is closed, but it is clear that for an IPO market which was recovering timidly, the blow was a bit harsh,” observes Andreas Bernstorff, head of capital markets at BNP Paribas.
The November presidential election in the United States could also disrupt the timetable for IPO projects, but bankers believe that investors will be less concerned about the potential for volatility in the market. Companies wishing to go public from September could therefore have better chances.
“Some IPOs are preparing to take place after the summer and could have better chances than previously thought,” underlines Andreas Bernstorff.
The pipeline includes German academic publisher Springer Nature and drugmaker Stada, which could go public later this year, sources told Reuters.
(Written by Anousha Sakoui, Emma-Victoria Farr and Elisa Anzolin, with contributions from Helen Reid and Samuel Indyk; French version Diana Mandiá and Blandine Hénault)
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