CVC Capital Partners’ Trading Debut Signals Europe’s IPO Market Revival

The much-awaited trading debut of CVC Capital Partners indicates that Europe’s initial public offering (IPO) market is getting back on track, according to Euronext CEO Stéphane Boujnah.

Shares of CVC, a major European buyout company, surged by nearly 24% around 12:30 p.m. London time on the Amsterdam stock exchange.

The stock opened at over 17 euros ($18.25) per share, well above the offer price of 14 euros, showing strong investor interest. This IPO is expected to be one of Europe’s largest this year.

Euronext CEO says Europe’s IPO market is back on track with 11 listings this year.

CVC, aiming to raise between 2 billion euros and 2.3 billion euros, stated that the IPO was oversubscribed multiple times, reflecting robust demand from institutional investors worldwide.

“It is a clear sign of IPOs making a comeback in Europe, especially in mainland Europe,” Boujnah told CNBC’s “Squawk Box Europe” on Friday.

Boujnah mentioned that Euronext, Europe’s largest stock exchange and one of the world’s largest, had seen 11 stock listings since the start of the year.

“This indicates both the success and competitiveness of Euronext’s platform and it signals the return of the IPO market,” he added.

Boujnah’s remarks come after a decline in Euronext listings last year and the choice of several high-profile European companies to list in the U.S.

CVC Capital Partners
CVC IPO oversubscribed, set to raise between 2-2.3 billion euros, one of Europe’s largest. (Credits: Jason Alden)

For instance, British chip designer Arm went public in New York last year, impacting the U.K.’s post-Brexit aspirations. Additionally, Irish building materials firm CRH successfully moved its primary listing to the New York Stock Exchange in September, delisting from Euronext Dublin.

Euronext had 64 equity listings last year, down from 83 the year before.

When asked if Euronext was set to surpass the 64 listings from last year, Boujnah said, “I think the worst is over.”

“We have a dynamic pipeline of both EU and international companies. Any international company considering listing in Europe now looks at the Euronext market,” he added. “We have an impressive pipeline for the months ahead.”

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x