European bourses battle for listings

EUROPEAN stock exchanges are scrambling for the next big initial public offering (IPO) payday, with Stockholm, Amsterdam, Zurich and London locked in a fierce battle to attract heavyweight listings. Amid a continent-wide drought in equity offerings, each bourse is working overtime to entice companies to go public on its platform.

The contest is fierce: Stockholm recently secured the listing of Verisure, the €20bil (US$22.8bil) security firm owned by Hellman & Friedman, after a tussle that saw Amsterdam, London and Zurich all pitch for the prize, Bloomberg reports, citing people familiar with the matter.

The win is a big deal for Sweden’s financial hub. “Competition between exchanges has definitely increased,” says Adam Kostyal, president of Nasdaq Stockholm. “Around the bigger firms we have work to do, but we are certainly not sitting on the sidelines,” he tells Bloomberg.

Stockholm’s edge came from Verisure’s historic ties to the country and the strength of its local investor base. The security giant, formerly known as Securitas Direct, once traded in Stockholm before it was taken private. Despite now being headquartered in Switzerland and employing most of its staff in Spain, Stockholm’s investor community proved a decisive factor in winning the listing.

Scramble for the next big fish

No sooner has the ink dried on Verisure than the exchanges are jostling again – this time for Visma, the Norwegian software group backed by Hg Capital. Visma, valued at €19bil in a stake sale late last year, could launch its IPO as early as 2026, with Amsterdam and London vying to host the deal, according to Bloomberg.

Visma’s potential float would be a major boost for whichever exchange secures it. Last year, the company raked in €2.8bil in revenues, supplying software to firms across Europe for invoicing and HR solutions.

The need to land such high-profile listings has never been greater.

Data compiled by Bloomberg show Europe accounts for just 8% of global IPO issuance so far this year, compared with an average of 16% over the past decade. The region’s biggest deal of 2025 to date barely scraped the US$1bil mark on the Stockholm bourse.

A bruising backdrop

The IPO drought follows a period of turbulence, with many of Europe’s flagship companies choosing to list in the United States, lured by deeper pools of liquidity and higher valuations. UK-based Arm Holdings famously floated in New York in a blockbuster US$5bil IPO in 2023, while Klarna is eyeing a similar move.

“Some European companies have looked to the United States for better liquidity and heftier valuations,” Bloomberg notes. That trend is forcing European exchanges to step up their game.

Mathieu Caron, head of primary markets at Euronext NV, which operates Amsterdam and several other bourses, was quoted by Bloomberg as saying: “The last few years have been challenging for equity capital market, and when you have less activity the competition increases for those firms that are willing to list.”

Euronext has responded by assembling an international listings team in London, tasked with chasing issuers beyond its home markets. “We proactively approach companies or their shareholders, like private equity and venture capital funds, and sometimes we’re invited to pitch for a listing,” Caron explains.

London’s bruising year

London, once the undisputed champion of European IPOs, has taken its share of knocks. Takeovers and high-profile defections have sapped its pipeline. Payments giant Wise recently revealed plans to shift its primary listing to New York.

Still, Charlie Walker, deputy chief executive of the London Stock Exchange, sees signs of hope.“We’ve seen a noticeable increase in interest from international companies in coming to London,” he says in an emailed response to Bloomberg. He’s also called on the UK government to boost domestic investment to improve market liquidity.

Zurich, too, is ramping up efforts. A spokesperson for SIX Group AG says it sees “a good pipeline from several issuers across sectors and regions”.

Structural shifts and reforms

Amid the scramble, exchanges and regulators are working to make life easier for potential issuers

London Stock Exchange Group will now allow stocks that trade in currencies other than the pound to qualify for FTSE index inclusion. Euronext has introduced a common prospectus to align with EU efforts to unify capital markets. Nasdaq has smoothed the process for US-listed companies to dual-list in Stockholm. Spain’s bourse, part of SIX, is letting companies list first and pick their window to sell shares, helping them navigate market volatility.

Cautionary note

Yet the outlook remains clouded. S&P Global Market Intelligence warns that recent market volatility, driven in part by shifting US trade tariff policies, could hamper European IPO activity in 2025.

“Global trade tensions clouded the outlook for economic growth and central bank rate cuts, shaking up investor confidence and business sentiment,” analysts at S&P Global Market Intelligence write.

In this environment of high uncertainty, the IPO windows are narrowing as stock price instability leads to “significant shifts in multiples and valuations, making it quite challenging to find an attractive and stable bookbuilding range for future listings,” Steinbach tells S&P Global Market Intelligence.

Even so, he notes there’s a solid pipeline of companies ready to seize a more supportive environment, should conditions stabilise. Expected European Central Bank rate cuts, increased government spending, and eased EU regulations could support economic growth and businesses in Europe, Steinbach says.

Market volatility has also prompted some companies to pause their plans. German drugmaker Stada Arzneimittel AG, which aimed to raise €1.5bil in a March IPO, delayed the float due to market jitters, Bloomberg reported.

“IPO candidates are observing the capital market environment, testing investor sentiment, and adjusting their timelines,” Steinbach tells S&P Global Market Intelligence. He also notes that IPO “equity stories” must be assessed on a case-by-case basis, especially in light of risks from trade tariffs.

The road ahead

Europe’s share of global IPO value picked up in the first quarter from a late-2024 slump, yet it still represents the lowest share since the fourth quarter of 2023, according to S&P Global Market Intelligence.

Vhernie Manickavasagar, capital markets partner at PwC UK, warns that IPO activity in the region “will depend on the stabilisation of equity markets and return of confidence”. Macroeconomic stability is key, she adds, cautioning that “any further macroeconomic shocks or unforeseen geopolitical conflicts are likely to prolong volatility”.

In general, as Europe’s IPO drought drags on, political reforms, market volatility and investor sentiment will dictate whether the continent can reclaim its place as a powerhouse for listings. The stakes have rarely been higher. — Bloomberg