In 2026, European IPO financing set a record at the beginning of the year, showing signs of market recovery

Europe's IPO market has welcomed its strongest annual start ever, injecting confidence into new stock listings after a prolonged slump. According to the Financial Times on Monday, the financing amount of just five IPO transactions in Europe this month has reached a quarter of the total for the entire year of 2025, marking the fastest annual start since 1995. Investment bankers and investors are warming up to expectations of a market recovery. Arms manufacturer Czechoslovak Group (CSG) completed a €3.8 billion financing on Friday, with its stock price soaring 31% on the first day, bringing its market capitalization close to €33 billion. This Amsterdam-listed company is the largest IPO in Europe this month, successfully passing a key test of market confidence. A series of large enterprises in the European IPO financing sector are preparing to go public, significantly increasing market activity. Tom Swerling, Global Head of Equity Products at Deutsche Bank, stated, "This could be the best IPO market in Europe in over a decade." This momentum resonates with the markets in the United States and Hong Kong. Large AI companies in the U.S. are preparing for substantial listings, while Hong Kong is also benefiting from a wave of IPOs from Chinese AI companies. For investment banks, the market recovery is expected to bring considerable fee income, potentially reversing the sluggish IPO activity post-pandemic. Defense Sector Leads the Listing Boom CSG's successful listing has added momentum to the IPO plans of other defense companies, with Franco-German joint tank manufacturer KNDS and German group Vincorion among those preparing for IPOs. Bankers point out that the industrial, logistics, and technology sectors are expected to be key areas for growth in European IPO activity this year. Luca Erpici, Head of Equity Capital Markets for Jefferies in Europe, the Middle East, and Africa, stated that Friday's listing "substantially enhanced confidence in the European IPO market." He noted, "Investor interest is also driven by improvements in the quality and scale of potential IPO candidates." The strong rebound of European stock markets last year has elevated valuation levels, increasing the chances for companies to achieve attractive pricing in the public market. CSG has become one of the largest IPOs in Europe in the past decade, second only to Porsche's €9.082 billion financing in 2022. Despite the strong start, bankers remain cautious about the market outlook. Previous expectations for a listing recovery have often fallen short, including setbacks following Trump's announcement of trade tariffs in April last year. In 2025, Europe completed a total of 105 IPOs, raising €16.1 billion, a slight decline from 2024, and only one-fifth of the peak in 2021. The region accounts for only one-tenth of the global IPO financing total, while other markets like the U.S. have seen a rebound in activity. Private Equity-Backed Companies Poised for Action Advisors are focusing on a batch of long-prepared IPO projects backed by private equity. The owners of these companies are looking to reduce their stakes and return cash to investors. Large private equity-held companies that may go public in Europe this year include: Visma, a software company valued at €19 billion under Hg, aiming for a listing in London; Mobile.de, a German automotive trading platform valued at €10 billion; and TK Elevators, a German industrial group valued at $25 billion. ** In October last year, the Swedish security services group Verisure, supported by Hellman & Friedman, completed a €3.2 billion IPO, providing support for these transaction prospects. Andrew Briscoe, head of equity capital markets for Europe, the Middle East, and Africa at Bank of America, stated, "Many sponsors have held these assets for a long time and are facing internal monetization pressure, especially with the stock market at historical highs." Clara Comellini, head of block trading and wealth management for equity capital markets at UBS for Europe, the Middle East, and Africa, pointed out, "The marketing activities are very intense, and the deal pipeline is more robust compared to last year." London Market Seeks Breakthrough The listing of Visma will serve as a bellwether for the London market. After experiencing a shortage of major issuance projects, London is seeking a rebound. Other potential IPO candidates in London include the bookstore Waterstones, roadside assistance provider RAC, and the retail division of Hong Kong's CK Hutchison, which includes Watsons and European telecommunications businesses. Whether these transactions can successfully materialize will test the sustainability and breadth of the recovery in the European IPO market