Pan-European stock exchange operator Euronext NV is optimistic about the outlook for initial public offerings (IPOs) in 2025, driven by private equity funds turning to equity markets to exit their investments, according to a report by Bloomberg.
“There’s a real need for them to return capital” to their investors, said Mathieu Caron, Euronext’s head of primary markets.
Euronext, which oversees exchanges in Paris, Amsterdam, Milan, Brussels, Dublin, Lisbon, and Oslo, reported welcoming 53 new companies to its markets in 2024. These listings raised a total of €3.9bn ($4.1bn) in capital, a 55% increase from the previous year.
Looking ahead, Caron highlighted several sectors, including defence, technology, and green energy, as likely drivers of IPO activity in 2025. Additionally, he expects spinoffs – like those undertaken by Vivendi SE and Sodexo – to remain a trend as conglomerates streamline their portfolios.
“We think we will have a year in 2025 which will be better both in terms of the number of deals and of the amount of capital,” Caron remarked.
Pressure on private equity funds to exit investments is mounting, with extended ownership periods pushing fund managers to seek efficient monetisation strategies. According to Caron, stock markets proved highly effective in 2024 for this purpose.
Across Europe, IPOs and share sell-offs involving private equity-backed companies generated over $25bn in gross proceeds – an 80% increase compared to 2023, as calculated by Bloomberg in mid-December.
Notable 2024 deals included the listing of French software company Planisware SA and Swiss skincare leader Galderma Group AG, both backed by private equity investors.
