EUROPEAN IPO MARKET. GLOBAL AND REGIONAL STOCK EXCHANGES.
Keywords:IPO, initial public offering, stock exchange, stock market, LSE, WSE
Purpose. This article provides analysis of the European Initial Public Offerings (IPO) market which is one of the biggest of the Global IPO markets. IPO provides a stock market launch, when shares of stock of a company are introduced to public at a stock exchange for the first time. IPO is an important source of finance resources for rapidly developing companies and a key step for them to become mature. Recent economic crisis has changed the landscape and the practice of IPO that should be reconsidered either from an investors point of view or from the company heading to the IPO. The article is also focused on identifying the roles of global and regional stock exchanges using example of development of London and Warsaw stock exchanges.
Methodology. The article provides quantitative analysis of selected top performing European stock exchanges official reports and analytical papers of key audit and consulting experts. It is particularly focused on a number of IPO’s, volume of raised capital by year and by stock exchange within the period preceding the financial crisis of 2007-2008.
Results. The article shows changes in the European IPO dynamics and change of roles of the European stock exchanges in post financial crisis. In particular it shows the growth of importance of the regional stock markets in the European stock exchange ecosystem and Warsaw Stock Exchange (WSE).
Practical implications. Recent economic crisis has changed the landscape in the practice of making IPO’s. Company heading to IPO should take changes on the IPO market seriously and take regional IPO opportunity into consideration. Presented results could help to streamline IPO plans. Results could be of interest to investors to have a more detailed look at the highly performing regional stock exchanges.
Value/originality. This article studies are based on the most current data collected by the author from the various stocks reports and the most respectable audit and consulting companies. Analysis and graphic materials are produced by the author.