# Analysis-Europe’s record IPO year has a sting in its tail Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-08 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Europe IPO Market Falters Amid China Property Crisis Meta Description: Europe's record IPO year faces hurdles as inflation fears and China property crisis dampen investor interest. Deal cancellations on the rise. URL: https://financedigest.com/analysis-europes-record-ipo-year-has-a-sting-in-its-tailhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-08t155200z1lynxmpeh970uortroptp4europe-ipo-1736837692835-compressed.jpg) By Abhinav Ramnarayan and Oliver Hirt LONDON (Reuters) – Europe’s record year for initial public offerings [(IPOs)](https://www.financedigest.com/companies-are-empowered-to-retain-control-with-alternative-routes-to-liquidity.html) is threatening to come to a juddering halt as inflation fears and concerns over a property crisis in China have soured investors’ appetite for new stock listings. Deal cancellations and postponements have started to hit the screens with France’s Icade Sante and Switzerland’s Chronext pulling deals in the past week. Czech company Eurowag pushed through a reduced-size [London IPO](https://www.financedigest.com/british-pm-sunak-revives-talks-for-arms-london-ipo-ft.html "British PM Sunak revives talks for Arm’s London IPO -FT") on Friday, but the trucking services group’s stock fell 10% from its 150 pence offer price. Many companies that listed earlier in the [year are trading below their IPO price](https://www.financedigest.com/hong-kong-home-prices-drop-15-6-in-2022-snap-13-years-of-gain.html "Hong Kong home prices drop 15.6% in 2022, snap 13 years of gain"), with the FTSE Renaissance IPO Index for the [Europe,](https://www.financedigest.com/gazprom-books-no-yamal-europe-gas-transit-capacity-for-dec-30.html) Middle East and Africa region down 9.19% so far this year. Fear of inflation and [rising interest rates](https://www.financedigest.com/shares-slip-yields-rise-as-u-s-data-sparks-rate-hike-concerns.html "Shares slip, yields rise as U.S. data sparks rate hike concerns"), as well as uncertainty around China, have made many investors more cautious,” said Christoph Lang, head of core equities in Europe for J. Safra Sarasin. The Goldilocks environment we had for the [last twelve months](https://www.financedigest.com/fintech-trends-to-look-out-for-during-the-last-six-months-of-2019.html "Fintech trends to look out for during the last six months of 2019") is over. The United States has also been [hit by the shift in investors’ mood](https://www.financedigest.com/uk-consumer-mood-hits-one-year-high-but-financial-gloom-persists.html "UK consumer mood hits one-year high, but financial gloom persists"), with Peleton rival iFIT dropping its IPO plans, while shares in fitness centre operator Life Time’s opened 8% below their offer price on its debut., This contrasts with the first nine months of 2021, when listings surged to their the highest level since the dotcom bubble of 2000, based on Refinitiv data, even if the pace slowed in the [third quarter](https://www.financedigest.com/delivery-hero-sees-higher-gross-merchandise-value-in-third-quarter.html "Delivery Hero sees higher gross merchandise value in third quarter"). The IPO market [closely reflects investors’](https://www.financedigest.com/optable-closes-20-million-series-a-financing-broadens-investor-syndicate-in-new-round.html "Optable Closes Million Series A Financing, Broadens Investor Syndicate in New Round") appetite for risk and they tend to become more reluctant to commit large chunks of cash to a single company if the broader economic environment is showing signs of strain. [Uncertainty over the fate of heavily indebted Chinese property](https://www.financedigest.com/battling-uncertainty-is-the-key-to-property-investment-success.html "Battling uncertainty is the key to property investment success") company Evergrande and rising bond yields on the back of strong inflation numbers have hit stock [markets](https://www.financedigest.com/athletic-footwear-market-is-expected-to-generate-a-revenue-of-usd-193-3-billion-by-2031-globally-at-4-88-cagr-verified-market-research.html) globally. The MSCI’s [World Index is down over 4% over the past month](https://www.financedigest.com/world-food-price-index-falls-for-sixth-month-in-sept-fao.html "World food price index falls for sixth month in Sept -FAO"). We’ve had something of a buyers’ strike, which is not a phrase I’ve had to use for a while,” said one [senior banker who manages](https://www.financedigest.com/the-senior-management-regime-takes-shape.html "The Senior Management Regime takes shape") IPOs in Europe, preferring to remain anonymous as he is not authorised to speak about his clients. The [market has turned quite viciously and investors are reluctant to put money to work in IPOs](https://www.financedigest.com/the-ipo-market-in-2021-and-beyond.html "The IPO market in 2021 and beyond") unless they are a complete slam dunk. He said that apart from the deal cancellations, a number of IPOs that were being prepared [behind the scenes](https://www.financedigest.com/britons-can-now-go-behind-the-scenes-of-silicon-valley.html "Britons Can Now Go Behind The Scenes Of Silicon Valley") are being postponed. A few high-profile IPOs are still heading for [market,](https://www.financedigest.com/athletic-footwear-market-is-expected-to-generate-a-revenue-of-usd-193-3-billion-by-2031-globally-at-4-88-cagr-verified-market-research.html) led by Volvo Cars in Sweden, a company that is [hoping to tap into the huge appetite for electric vehicle makers and deliver what would be the biggest stock](https://www.financedigest.com/stocks-dollar-gain-on-soft-landing-hopes.html "Stocks, dollar gain on soft landing hopes") market listing in Europe in 2021. Bankers also said the [Nordic market](https://www.financedigest.com/nordic-floor-paints-market-is-estimated-to-progress-at-a-cagr-of-2-7-and-reach-a-value-of-104-mn-by-2031.html "Nordic Floor Paints Market is estimated to progress at a CAGR of 2.7% and reach a value of 104 Mn by 2031") feels slightly insulated from the travails elsewhere. Swedish spam blocking app Truecaller completed an IPO that valued it at SEK 19.43 billion ($2.21 billion) and [traded up from its list price](https://www.financedigest.com/belgium-supports-energy-price-caps-suspending-trading-in-eu-power-crunch.html "Belgium supports energy price caps, suspending trading in EU power crunch") on Friday. [Norwegian robotics company Autostore is planning](https://www.financedigest.com/euro-slips-back-below-parity-norwegian-krone-falls-on-planned-cbank-fx-purchases.html "Euro slips back below parity, Norwegian krone falls on planned cbank FX purchases") an Oslo listing this month that could value it at up to NOK 103.4 billion ($12.04 billion). Others braving the [market turbulence](https://www.financedigest.com/the-breakfast-cereals-market-to-sail-through-innovation-based-turbulence.html "The Breakfast Cereals Market To Sail Through Innovation-Based Turbulence") include French cloud computing company OVHCloud, which is due to price its IPO next week, and Russian software group Softline, which is planning a London IPO in the coming weeks. ($1 = 8.7945 [Swedish crowns)](https://www.financedigest.com/dollar-edges-down-from-six-week-peak-swedish-crown-jumps.html "Dollar edges down from six-week peak, Swedish crown jumps") ($1 = 8.5884 Norwegian crowns) ![Sinking feeling](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/ipo-index-450x250-1736837692735-compressed.jpg) Graphic: Sinking feeling https://fingfx.thomsonreuters.com/gfx/mkt/dwpkragngvm/ipo%20index.png (Reporting by Abhinav Ramnarayan and Oliver Hirt. Editing by Jane Merriman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---