In 2025, Europe's IPO activity has noticeably slowed down, with major companies and sponsors preferring mergers and acquisitions instead.
Shift in Preferences towards M&A
Key companies and sponsors like Klarna, TenneT, and Stada are opting for alternative strategies rather than traditional IPOs. This shift reflects current market conditions.
Impact of Market Instability
Market volatility and prolonged IPO timelines affect corporate and private equity strategies. A lackluster investor appetite is also among the factors contributing to this trend.
Expert Opinions
According to Jonathan Murray, Co-Head ECM EMEA at Mizuho: "The IPO process is quite long, and during that process you can have market risk... Private equity sponsors don’t like taking a company public unless they can fully exit."
The slowdown of IPOs in Europe in 2025 highlights the growing preference for mergers and acquisitions among companies, influencing market dynamics and potential future strategies.
