European PE-backed IPO in 18-month High

Michelle Remo, “Big 4″ observer
April 06, 2012 /

Private equity-backed IPOs represented well over 1/3 of total IPO value globally with US$6.1b out of US$16.4b and 36 deals out of 181 IPOs.

Compared to Q4’11, PE-backed deals increased by 33% in number of deals and rise by 40% in capital raised.

Compared to Q1’11, PE-backed deals increased by 80% in volume of deals and by 57% decrease in capital raised. This is largely due to a number of record-breaking deals in Q1’11.

Seven of the top 20 global IPOs were PE-backed companies.

Global average deal size was US$168.4m in Q1’12, remaining steady with Q4’11 (US$160.6m).
The pipeline of PE-backed filings continues to expand, providing positive signs of continued momentum. Twenty five PE-backed companies filed their intentions to go public in the first three months of the year, including the arts and crafts’ retailer, Michaels Stores.

However, data from Dealogic indicates that nine IPOs were withdrawn in Q1’12, demonstrating that the IPO market is still impacted by uncertainty in the global economy.

Europe and Asia

The largest Q1 2012 PE-backed IPO by capital raised was the Dutch cable operator Ziggo, which listed on NYSE Euronext Amsterdam for US$1.1b. This was the largest PE-backed IPO observed on a European market in the last 18 months which could be a sign of renewed confidence in European equity markets.

Asia-Pacific continued to experience a decline in PE-backed IPO activity with only seven IPOs raising US$415m.


72% of global PE-backed IPO proceeds were raised by US companies. US listings were a primary driver in Q1 PE-backed IPO activity with 27 deals raising US$4.4b.

The second largest PE-backed IPO in Q1 globally was US-based Allison Transmission Holdings Inc. (US$690.3m on NYSE); followed by Vantiv Inc. (US$575m on NYSE). Together they accounted for 21% of capital raised.

“The proportion of IPOs of private equity-backed companies increased considerably this quarter. In the US, six of the quarter’s 10 largest IPOs represented PE-backed companies,” Jeff Bunder, Global Private Equity Leader at Ernst & Young, said.

Oaktree Capital Group, the US-based distressed debt investor is expected to raise as much as US$517.5m in an IPO, joining The Carlyle Group in pursuing an IPO in the coming months.


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