Europe’s IPO Revival Gains Momentum
A recent surge in initial public offerings (IPOs) across Europe is reigniting optimism for a broader market rebound in a region that has experienced sluggish public listings compared to North America and Asia. Companies spanning diverse sectors such as fintech, defense, software, and energy have either recently gone public or are preparing for listings, signaling renewed confidence among issuers and investors alike.
Notable IPOs Spotlight Market Activity
Last week, Aumovio, an auto-parts supplier spun out from Continental, debuted on the Frankfurt Stock Exchange, closing its first week with shares up over 10% from the initial price, valuing the company above €4 billion. Swiss Marketplace Group also launched its shares on the Swiss Stock Exchange, pricing at 46 Swiss francs ($57.84) per share and achieving a market capitalization of approximately $5.7 billion. Shares closed higher at 49 Swiss francs.
“The September IPO activity is the quarter’s standout story, with issuers and private equity viewing the product as a viable exit route again in Europe,” said Phil Drake, head of U.K. equity capital markets at Bank of America in London. Drake emphasized that discussions around IPOs are intensifying and that secondary market sell-downs remain robust, reflecting growing investor interest.
Upcoming Swedish IPOs Signal Confidence
Sweden’s Nasdaq Stockholm is poised for two significant listings: Verisure, a Swiss private equity-backed security company, plans a €3.1 billion IPO, aiming to fund international expansion and reduce debt. Digital banking group NOBA targets a $3.7 billion IPO on the same exchange, with CEO Jacob Lundblad highlighting the benefits of increased market visibility and enhanced capital market access.
“Now we will get some more publicity, which I think we will benefit from, also in our retail offerings,” Lundblad told CNBC, underlining the strategic value of going public.
Balancing Private and Public Market Dynamics
Despite the IPO uptick, Europe’s public market activity remains subdued compared to North America, where IPO proceeds reached $17.7 billion across 153 deals in the first eight months of 2025, versus $5.5 billion from 57 European listings. Henri Marcoux, deputy CEO of Tikehau Capital, noted a contrasting surge in private market investments, driven by growing demand from private investors and institutions. Several companies, including German pharma firm Stada and regional bank OLB, recently cancelled IPO plans in favor of private sales, opting for greater certainty. Nonetheless, Bank of America’s Phil Drake pointed to improving investor sentiment towards public listings, supported by factors such as low market volatility and a weaker U.S. dollar enhancing euro-denominated equity returns.
“What’s not to like about the backdrop for equities and ECM [equity capital markets] right now?” Drake remarked, highlighting broad-based activity across sectors and quality growth stories.
FinOracleAI — Market View
Europe’s recent IPO momentum reflects a cautiously optimistic recovery in public equity markets, driven by a combination of improved investor sentiment, sector diversity, and supportive macroeconomic factors.
- Opportunities: Enhanced access to capital for growth-oriented firms; increased liquidity options for private equity investors; potential inflow of U.S. capital due to currency advantages.
- Risks: Persistent competition from private markets may limit IPO volume; geopolitical and economic uncertainties in Europe could dampen investor appetite; potential volatility if macroeconomic conditions shift.
Impact: The uptick in European IPOs signals a positive development for equity capital markets, suggesting a gradual restoration of confidence and increased market activity, although challenges from private market competition and broader economic factors remain.
