Euronext Boss Says $2 Billion CVC Debut Shows IPO Market Recovery

(CTN News) – Euronext CEO Stéphane Boujnah told on Friday that the highly anticipated trading debut of private equity group CVC Capital Partners shows that the European IPO market is once again on track.

The share price of CVC, one of the largest private equity firms in the world, was approximately 24% higher at approximately 12:30 p.m. Eastern Standard Time.

There was an opening price of more than 17 euros ($18.25) per share, which was significantly higher than the 14 euro offer price, indicating that there is strong investor demand for this company. As one of Europe’s largest IPOs this year, the IPO is widely expected to be a record-breaker.

CVC anticipates raising between 2 billion and 2.3 billion euros from the deal. According to the company, the IPO was oversubscribed multiple times and increased to accommodate robust demand from institutional investors throughout the world.

The IPO is a very strong indication of IPOs returning to Europe, and in particular to continental Europe, Euronext’s Boujnah said on Friday’s “Squawk Box Europe” on CNBC.

Since the start of the year, Euronext,

The largest stock exchange in Europe and one of the largest in the world, has welcomed 11 stock listings.

“That’s a signal of the success of the Euronext platform as well as its competitiveness, and it’s also a signal that the IPO market is back on track,” he concluded.

Several high-profile European companies chose to list in the U.S. in place of the Euronext last year, prompting Boujnah’s comments.

For example, the public listing of British chip designer Arm in New York last year dealt a blow to U.K.’s post-Brexit plans. Additionally, the Irish building materials company CRH announced in September that it had successfully transitioned from Euronext Dublin to the New York Stock Exchange as its primary listing.

As of last year, Euronext reported 64 equity listings on its platform, a significant decrease from the 83 listings it welcomed a year earlier.

Upon being asked whether was likely to exceed the 64 listings it completed last year, Boujnah stated, “I think the worst is over.”.

We have a very dynamic queue of both EU-based companies and international firms. A company that is interested in listing on the Euronext market in Europe now looks at listing on the Euronext market,” he stated.

In the coming months, we have an impressive pipeline of projects.

SEE ALSO:

Anglo American Miner Faces Takeover Interest As Elliott Takes $1 Billion Stake