PrimaryBid raises funds to expand across European equity capital raising
The company is expanding its UK-tested platform through an agreement with Euronext to bring the retail bid into follow-on offers from listed SMEs across Europe.
Equity capital markets (ECM) volume in EMEA for the first half of 2019 was down 33% on the first six months of last year, according to Dealogic, but there was some reason for optimism, notably a strong run of IPOs in the second quarter.
After the quiet start to 2019, that was a welcome boost to ECM bankers who went to work on some large technology flotations, notably for Italian software company NEXI ($2.3 billion) and Emirati fintech Network International Holdings ($1.6 billion).
The first half of the year also witnessed a strong aftermarket performance for IPOs of above $50 million, with EMEA issuers giving buyers an average 15.1% return in the first week after launch, up eight times from the first half of 2018 and the highest average one-week return for any six-month period since 2013.
This, once again, raises the question of who benefits from these pops and the extent to which ECM structures favour a few well-connected institutional buyers and exclude retail investors that may be patient, committed, well-informed holders of issuers’ stock.
Anand Sambasivan, PrimaryBid
Large technology IPOs may be the most closely watched component of the equity new issue market, but behind those headline deals, change is coming.