Goldman Sachs Europe IPO List ‘Jam-Packed’, Stanger SaysShane Strowmatt
Goldman Sachs Group Inc.’s list of pending European initial public offerings is at least as long as during the first half of the year, said Christoph Stanger, co-head of equity capital markets for Europe, the Middle East and Africa.
“When I look at our pipeline - and I think that’s representative for others’ - it’s actually jam-packed,” Stanger said at a news conference in Frankfurt today. “We can assume that if markets hold, it will be a very, very active second half of the year.”
IPOs and secondary share sales raised about $182 billion in Europe in the first half, the most since 2007, according to data compiled by Bloomberg.
Stanger said there could be as many as five to 10 initial public offerings in Germany during the second half. Most German IPO candidates are about the size of companies listed on the nation’s mid-cap MDAX Index, he said.
Equity capital market deals in Germany raised about $24 billion so far this year, compared with $26 billion in all of 2013, Bloomberg data show.
Deutsche Bank AG is ranked first in managing IPOs and secondary share sales in Germany this year, JPMorgan Chase & Co. was second and Goldman Sachs third, data compiled by Bloomberg showed.
“I could imagine that we’ll pack on another 10 billion in issuance volumes” for Germany, Stanger said about the second half. “That’s all assuming that the markets hold, which seems reasonable from today’s perspective, but there are certainly clouds on the horizon.”
The increase in global underwriting this year has partly been driven by European markets “roaring back,” Raj Dhanda, Morgan Stanley’s co-head of global capital markets, said in June.
Developments in Ukraine, Gaza and other areas could have a negative impact on European equities. If political tensions with Russia were to deteriorate further it “has the potential to move markets,” he said.