Equity Primary Markets and Trading Report

Transcription

1 Equity Primary Markets and Trading Report European market data update Q: 26 Association for Financial Markets in Europe

2 Table of Contents Table of Contents Highlights... 3 European Equity activity (EU 28 member countries and Switzerland)... 3 Detailed findings and Commentary... 4 Major upcoming regulatory, legislative and policy initiatives... 5 Issuance Equity underwriting ( bn) IPOs ( bn) Follow-on offerings ( bn) Convertible securities ( bn) IPO proceeds by country of exchange: Q 26 ( mn) Number of IPOs by country of exchange: Q IPOs by nationality of issuer: Q 26 ( mn) Number of IPOs by nationality of issuer: Q IPOs by industry of issuer: Q6 ( mn) Number of IPOs by industry of issuer: Q Median percentage difference between offer price and -Day closing price of IPOs Overallotment as proportion of quarterly IPO proceeds IPOs by proportion of exercised overallotment ( bn) Average proceeds per IPO ( mn) IPOs by value of proceeds Number of IPOs by market value of issuing firm (pre-deal market value) Median market value of IPO issuing firms ( mn, pre-deal market value) IPOs by listing venue (EUR mn) Number of IPOs by listing venue... 2 Mergers and Acquisitions Completed M&A by type of deal: full-year and selected quarters Completed M&A by type of deal: quarterly Completed M&A by acquiring party: full-year and selected quarters Completed M&A by acquiring party: quarterly Deal value of completed European M&A deals ( bn) Completed M&A by type of deal: annual and selected quarters Completed M&A by type of deal: quarterly Completed strategic M&A Completed add-on M&A Sponsor M&A Average value of completed M&A Announced M&A Completed M&A by nationality of target firm (selected countries) Completed M&A by nationality of acquirer (selected countries) Completed M&A by industry of target firm Completed intra European M&A transactions by size of deal (EUR bn) Completed intra European M&A transactions by location of acquiring and target company (Q 6, EUR mn) Outstanding and trading Domestic market capitalisation of listed shares (EUR Tn) Value of euro-denominated listed shares issued by euro area residents (EUR Tn) Number of listed companies in Europe Domestic market capitalisation of listed shares as proportion of GDP (%) Turnover ratio of European shares: Dark and Lit (Annualised turnover value/market capitalisation) Value traded in dark pools as proportion of turnover in Exchanges and MTFs Dark trading of indexed shares as proportion of total turnover (dark and lit)- selected indices Monthly turnover value on European exchanges and MTFs (EUR bn) Valuation indices and ratios Price indices of selected stock exchanges (Sep 7 = ) Price per earnings ratio (PE ratio) of shares listed in selected European exchanges Price-to-book ratio of shares listed in Stoxx 6 and EU average Dividend payout ratio of shares listed in selected exchanges (Dividends/Earnings per share) Dividend yield ratio of shares listed in selected exchanges (Dividend/Price) Implied volatility of constituent shares of Euro Stoxx 5 (VSTOXX)... 7 Summary of the Methodologies Adopted for this Report... 8 Annex... 2 Page 2

3 Highlights Highlights Comprehensive data source with updated statistics on equity primary markets and trading in Europe (EU 28 member countries and Switzerland) Main findings: Equity underwriting in European exchanges accumulated in Q 26, a total of 2.8 bn in proceeds, a decrease of 66.2% from the value originated in 4Q 25 ( 6.6 bn). Equity underwriting encompasses Initial Public Offerings (IPOs), convertible securities and follow-on offerings. Mergers and Acquisitions (M&A) between European companies totalled 58.3 bn in Q 26, an increase of almost % from the value observed in 4Q 25 ( 79.2 bn). Of this, the acquisition of BG Group plc by Royal Dutch Shell plc accounted for 38% of the total deal value during the quarter. Excluding this deal, the increase against 4Q 25 stood at 23% QoQ. Equity trading activity in European main markets and MTFs accumulated in Q 26, a total of 3.3 tn in turnover value, a decrease of 3.4% from the value observed in Q 25 ( 3.4 tn) but.6% above the turnover value in 4Q 25 ( 3. tn). Market capitalisation of European shares stood at.7 tn at the end of Q 26, a decrease of 8% from the value observed in December 25 (.7 tn). European Equity activity (EU 28 member countries and Switzerland) 2 Q 6 Q 5 2Q 5 3Q 5 4Q 5 25 FY % Change Q6 YtD % Change Q6 QoQ Equity underwriting ( bn) % -66.2% IPOs % -82.8% Follow-on offerings % -69.6% Convertible securities % 2.% Mergers and Acquisitions ( bn) % 3.3% European firms acquiring non-european firms % -25.% Non-European firms acquiring European firms % 3.% Intra European deals % 99.9% Equity turnover value ( tn) %.6% Main Markets % 8.7% MTFs % 2.6% Market Capitalisation of domestic listed shares ( tn) European (EU28 and Switzerland) % -8.% EU % -7.8% Euro Zone % -7.8%, Bats Chi-X, FESE, World Federation of Exchanges, LSEG, ECB, NASDAQ Nordic, Bucharest Stock Exchange and CEESEG - Prague Underwriting and M&A data retrieved for this report on 9 April 26 Completed M&A between European firms as acquiring and target companies 2 Euro zone market cap updated as of February 26. Page 3

4 Detailed findings and commentary Detailed findings and commentary Detailed findings Issuance: equity underwriting and IPOs In Q 26, equity underwriting on European exchanges 3 accumulated a total of 2.8 bn, a decrease of 66.2% from the value originated in 4Q 25 ( 6.6 bn). Equity underwriting was led by follow-on offerings which accumulated a total of.7 in capital raising, followed by convertible securities ( 6. bn) and IPOs ( 3. bn). In Q 26, equity underwriting on European exchanges accumulated a total of 2.8 bn, a decrease of 66.2% from the value originated in 4Q 25 ( 6.6 bn). IPO activity fell during Q 26, with a quarterly decrease of 82.8% from 8.2 bn in 4Q 25 to 3. bn in Q 26 and an annual decrease of 82.% ( 7.4 bn in Q 25). The decrease in capital raising was possibly attributed to the market volatility during the quarter, where the implied volatility of Euro Stoxx 5 constituent shares reached a maximum of 38 bps in February (from an average of 24 bps in 25). IPO activity in Q 26 was led by listings on trading venues located in the United Kingdom (LSE and AIM), accumulating a total of.96 bn in proceeds (or 6 deals). Listings on NASDAQ OMX Main Market and First North accumulated.86 bn (2 deals), while German exchanges totalled.3 bn in IPO proceeds (2 deals). By industries, Computers & Electronics companies led IPO activity in Q 26, with.58 bn in proceeds during the quarter (8 deals). Finance companies stood second in IPO activity with.54 bn in proceeds (3 deals), followed by consumer products companies with.48 bn in proceeds ( deal). Mergers and Acquisitions (M&A) in Europe In Q 26, a total of 2,73 M&A deals were completed where either the target or the acquiring company were located in Europe, aggregating 267 bn in deal value including debt. These figures are comparable with a total of 2,5 deals during 4Q 25, aggregating 23.6 bn in deal value. Intra-European M&A activity M&A deals between European firms (as target and acquiring companies) accumulated 58.3 bn in deal value in Q 26, doubling the value observed in 4Q 25 ( 79.2 bn). The acquisition of BG Group plc by Royal Dutch Shell plc accounted for 38% of the deal value of completed transactions during the quarter (or 6.6 bn). Sponsor deals (backed by Private Equity firms) represented % of the cumulative deal value observed during Q 26 ( 7 bn). Add-on deals by portfolio companies of Private Equity firms represented % of the quarterly value ( 2 bn), while strategic deals accumulated 88% of the total annual deal volume ( 39 bn). 3 EU28 countries and Switzerland Page 4

5 Major upcoming regulatory, legislative and policy initiatives M&A deals between European firms accumulated 58.3 bn in deal value during Q 26, doubling the value observed in 4Q 25 ( 79.2 bn) A total of 74.4 bn of M&A deals between European firms were announced in Q 26, a decrease of 64% from the value announced during 4Q 25 ( 29 bn) and slightly below the value announced in Q 25 ( 76.3 bn). Size of the European equities trading market Market capitalisation of shares listed on European exchanges (EU 28 + Switzerland) finalised the quarter at.7 tn 4, a decrease of 8.% from the market value of December 25 (.7 tn). Of this value, market capitalisation of Euro zone exchanges stood at 5.8 tn, a decrease of 7.8% from 4Q 25 ( 6.3 tn). As of March 26, a total of,239 companies were listed on European exchanges, a decrease from the outstanding number observed at the end of 25 (,385). Turnover ratios of European exchanges and MTFs, calculated as the annualised turnover value as proportion of market capitalisation, stood on average at 24% in Q 26 (3% in 4Q 25) 5. Valuation ratios and indices Equity valuations of listed companies on European exchanges fell during Q 26. The price-to-book ratio of Stoxx 6 constituent companies fell from.7 in December 25 to.62 in March 26. CAC 4 French shares index accumulated losses of 5.4% QoQ during Q 26; the Spanish composite IBEX 35 dropped 8.6% QoQ; DAX 3 fell 7.24% QoQ (with a decrease in the average PE ratio from 5.4 in 4Q 25 to 4.6 in Q 26); while the FTSE reported a quarterly drop of.% YoY. Major upcoming regulatory, legislative and policy initiatives There several regulatory initiatives that are currently being considered at the European and national level with expected impact on the equities trading and capital markets performance. Some of the key initiatives currently being developed are: MiFID II/R Market Abuse Directive/Regulation (MAD/MAR) FCA s Wholesale competition review Basel III CSDR Prospectus Regulation AFME and its members are actively contributing on all of these and other initiatives. 4 The value of euro area listed shares issued by euro area residents is updated as of February Turnover values during the last two months of each year are usually the lowest of the year. This seasonality may partially explain the low turnover ratio in 4Q 25. Page 5

6 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 Issuance Issuance Equity instruments issuance in European exchanges. Equity underwriting ( bn).2 IPOs ( bn) Convertible securities IPOs Follow-ons Q Q Deal Value (EUR bn) # Deals (right) Follow-on offerings ( bn).4 Convertible securities ( bn) Deal Value (Euro m) Deal Value (Euro m) 4 # Deals (right) 3 7 # Deals (right) IPO proceeds by country of exchange:.6 Number of IPOs by country of Q 26 ( mn) 7 exchange: Q6 8 United Kingdom,959.9 United Kingdom 6 Denmark 48.5 Sweden Sweden Germany 2 Germany Spain 2 Poland 7. Denmark Finland 6.6 Finland Spain 3. Poland Excludes introductions and re-admissions. 7 Multiple exchanges relate to dual listings 8 Multiple exchanges relate to dual listings Page 6

7 Q 2 2Q 2 3Q 2 4Q 2 Q 2 2Q 2 3Q 2 4Q 2 Q 22 2Q 22 3Q 22 4Q 22 Q 23 2Q 23 3Q 23 4Q 23 Q 24 2Q 24 3Q 24 4Q 24 Q 25 2Q 25 3Q 25 4Q 25 Q 26 Q 5 3Q 5 Q 6 3Q 6 Q 7 3Q 7 Q 8 3Q 8 Q 9 3Q 9 Q 2 3Q 2 Q 2 3Q 2 Q 22 3Q 22 Q 23 3Q 23 Q 24 3Q 24 Q 25 3Q 25 Q 26 Issuance.7 IPOs by nationality of issuer: Q 26 ( mn).8 Number of IPOs by nationality of issuer: Q 26 United Kingdom,942. United Kingdom 4 Denmark 48.5 Sweden 9 Germany Germany 2 Sweden 26.9 Spain 2 Malta 3. Denmark Poland 7. Malta Finland 6.6 Poland United States 2.9 Finland Israel 5. United States Spain 3. Israel IPOs by industry of issuer: Q6 ( mn). Number of IPOs by industry of issuer: Q6 Computers & Electronics Computers & Electronics 8 Finance Healthcare 7 Consumer Products 48.5 Real Estate/Property 4 Real Estate/Property Finance 3 Publishing Construction/Building 3 Machinery Utility & Energy 2 Construction/Building 9.3 Consumer Products Healthcare 67. Publishing Professional Services 32.5 Machinery Utility & Energy 4. Professional Services Oil & Gas 5.9 Oil & Gas Retail.5 Retail Median percentage difference between offer price and -Day closing price of IPOs.2 Overallotment as proportion of quarterly IPO proceeds 6% 4% 2% % 8% 6% 4% 2% % 2% % 8% 6% 4% 2% % Page 7

8 Q 5 3Q 5 Q 6 3Q 6 Q 7 3Q 7 Q 8 3Q 8 Q 9 3Q 9 Q 2 3Q 2 Q 2 3Q 2 Q 22 3Q 22 Q 23 3Q 23 Q 24 3Q 24 Q 25 3Q 25 Q 26 Q Q Q 2 Q 3 Q 4 Q 5 Q 6 Q 7 Q 8 Q 9 Q 2 Q 2 Q 22 Q 23 Q 24 Q 25 Q 26 Issuance.3 IPOs by proportion of exercised overallotment ( bn) 25.4 Average proceeds per IPO ( mn) %.%-5% 5.%-%.%-5% >5% IPOs by value of proceeds Value of Proceeds ( bn) Q 6 Q 5 2Q 5 3Q 5 4Q 5 25 FY 24 FY <m m, < m m, < bn bn Total Number of Deals Q 6 Q 5 2Q 5 3Q 5 4Q 5 25 FY 24 FY <m m, < m m, < bn bn Total Number of IPOs by market value of issuing firm (pre-deal market value) Number of Deals Q 6 Q 5 2Q 5 3Q 5 4Q 5 25 FY 24 FY <m m, < bn bn Undisclosed 3 Total Median market value of IPO issuing firms ( mn, pre-deal market value) Page 8

9 Issuance.8 IPOs by listing venue ( mn) 9 Venue Q 6 Q 5 2Q 5 3Q 5 4Q Alternext Brussels & Paris 7 7 Alternext Paris Athens Stock Exchange 35 BME: Barcelona, Bilbao, Madrid & Valencia 4 BME: Madrid 4,72 3,63 8,36 4,329 BME: Mercado Alternativo Bursatil (MaB) Börse München Bucharest Stock Exchange (BVB) & LSE 444 Budapest Stock Exchange 3 Bulgarian Stock Exchange Sofia 6 6 Deutsche Börse (Frankfurt Entry) 9 9,45 Deutsche Börse (Frankfurt General & Warsaw Stock Exchange) Deutsche Börse (Frankfurt Prime & Hamburg) Deutsche Börse (Frankfurt Prime & Luxembourg) 43 Deutsche Börse (Frankfurt Prime) ,635 2,698 6,756,822 Euronext Amsterdam, ,329 6,75 5,992 Euronext Amsterdam & Brussels Euronext Amsterdam, Brussels & Paris 845 Euronext Brussels Euronext Brussels & Paris Euronext Lisbon 4 Euronext Paris 965 2,9 45,867 4,986 3,555 Irish Stock Exchange (ISE) Irish Stock Exchange (ISE) & Euronext Paris 9 London AIM ,34 London AIM & Irish Stock Exchange (ISE) LSE,659 5,22 2, ,436 4,33 4,92 LSE & Cairo LSE & Johannesburg LSE & Moscow Interbank Currency Exchange (MICEX) 72 LSE & Nigerian Stock Exchange 39 NASDAQ OMX Copenhagen ,68 NASDAQ OMX Helsinki NASDAQ OMX Stockholm ,49,935 4,992 2,98 NASDAQ OMX First North - Finland NASDAQ OMX First North - Finland & Stockholm NASDAQ OMX First North - Stockholm Prague Stock Exchange & Warsaw Stock Exchange 3 3 Prague Stock Exchange & Wiener Börse 4 SIX Swiss Exchange 2, ,37,247 Stockholm - Aktie Torget Warsaw Stock Exchange Warsaw Stock Exchange - NewConnect 3 4 Wiener Börse 94 Zagreb Stock Exchange Grand Total 3,29 7,354 2,897 4,8 8,243 52,53 46,34 9 Multiple exchanges relate to dual listings Page 9

10 Issuance.9 Number of IPOs by listing venue Venue Q 6 Q 5 2Q 5 3Q 5 4Q Alternext Brussels & Paris Alternext Paris Athens Stock Exchange BME: Barcelona, Bilbao, Madrid & Valencia BME: Madrid BME: Mercado Alternativo Bursatil (MaB) Börse München Bucharest Stock Exchange (BVB) & LSE Budapest Stock Exchange Bulgarian Stock Exchange Sofia Deutsche Börse (Frankfurt Entry) 2 Deutsche Börse (Frankfurt General & Warsaw Stock Exchange) 2 Deutsche Börse (Frankfurt Prime & Hamburg) Deutsche Börse (Frankfurt Prime & Luxembourg) Deutsche Börse (Frankfurt Prime) Euronext Amsterdam Euronext Amsterdam & Brussels 2 Euronext Amsterdam, Brussels & Paris Euronext Brussels Euronext Brussels & Paris Euronext Lisbon Euronext Paris Irish Stock Exchange (ISE) Irish Stock Exchange (ISE) & Euronext Paris London AIM London AIM & Irish Stock Exchange (ISE) LSE LSE & Cairo LSE & Johannesburg LSE & Moscow Interbank Currency Exchange (MICEX) LSE & Nigerian Stock Exchange NASDAQ OMX Copenhagen 2 NASDAQ OMX Helsinki 2 5 NASDAQ OMX Stockholm NASDAQ OMX First North - Finland NASDAQ OMX First North - Finland & Stockholm NASDAQ OMX First North - Stockholm Prague Stock Exchange & Warsaw Stock Exchange Prague Stock Exchange & Wiener Börse SIX Swiss Exchange 2 6 Stockholm - Aktie Torget Warsaw Stock Exchange Warsaw Stock Exchange - NewConnect Wiener Börse Zagreb Stock Exchange Grand Total Multiple exchanges relate to dual listings Page

11 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 2 Mergers and Acquisitions Mergers and Acquisitions Deals where the target or the acquiring company is located in Europe BILLIONS 2. Completed M&A by type of deal: fullyear and selected quarters 2.2 Completed M&A by type of deal: quarterly,, 8 25 Add-on Sponsor Strategic 3 25 Add-on Sponsor Strategic Q Q 2.3 Completed M&A by acquiring party: 2.4 Completed M&A by acquiring party: full-year and selected quarters 2 quarterly,, Non-European acquires European European acquires non-european Intra European deals Q Q Non-European acquires European European acquires non-european Intra European deals 2.5 Deal value of completed European M&A deals ( bn) Q 25 Q2 25 Q Strategic Sponsor Add-on TOTAL European firms acquiring non-european firms Non-European firms acquiring European firms Intra Europe deals TOTAL Sponsor deals refer to M&A deals where the acquirer or the seller company is a private equity firm. Add-on transactions are deals where acquirer or the seller company is a portfolio company of a private equity firm. Strategic deals are between two non private equity firms. 2 Intra European deals refer to completed deals where both the acquiring and target companies are located in Europe. Non-European acquires European are deals where a company located outside Europe acquires a company located in Europe. European acquires non-european firm are M&A completed transactions where the acquiring party is European and the target company is located outside Europe Page

12 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 Q Q 2 Q 3 Q 4 Q 5 Q 6 Q 7 Q 8 Q 9 Q 2 Q 2 Q 22 Q 23 Q 24 Q 25 Q 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 Mergers and Acquisitions Intra European deals (target and acquiring companies located in Europe) BILLIONS 2.6 Completed M&A by type of deal: annual 2.7 Completed M&A by type of deal: and selected quarters 3 quarterly Add-on Strategic Sponsor Q Q Add-on Sponsor Strategic 2.8 Completed strategic M&A 2.9 Completed add-on M&A Deal value ( bn) Number of deals (right) 2,5 2,,5, Deal value ( bn) Number of deals (right) Sponsor M&A 2. Average value of completed M&A Deal value ( bn) Number of deals (right) Sponsor deals refer to M&A deals where the acquirer or the seller company is a private equity firm. Add-on transactions are deals where acquirer or the seller company is a portfolio company of a private equity firm. Strategic deals are between two non private equity firms. 4 Sponsor deals refer to M&A deals where the acquirer or the seller company is a private equity firm. Add-on transactions are deals where acquirer or the seller company is a portfolio company of a private equity firm. Strategic deals are between two non private equity firms. Page 2

13 2 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q3 2 Q4 22 Q 22 Q2 22 Q3 22 Q4 23 Q 23 Q2 23 Q3 23 Q4 24 Q 24 Q2 24 Q3 24 Q4 25 Q 25 Q2 25 Q3 Mergers and Acquisitions BILLIONS 2.2 Announced M&A Completed M&A by nationality of target firm (selected countries) United Kingdom France Italy Netherlands Spain Germany Belgium Poland Switzerland Sweden Denmark Finland Czech Republic Completed M&A by nationality of acquirer (selected countries) 2.5 Completed M&A by industry of target firm Netherlands United Kingdom Italy France Finland Ireland Switzerland Spain Germany Poland Denmark Sweden Oil & Gas Telecommunications Auto / Truck. 9.6 Computers & Electronics Real Estate / Property 7.7. Healthcare Finance Machinery Utility & Energy Transportation Professional Services Insurance 2.2. Food & Beverage.9.7 Dining & Lodging Chemicals.7.8 Retail.3 2. Consumer Products Textile Completed intra European M&A transactions by size of deal ( bn) Value of deals ( bn) Number of deals Q 25 Q2 25 Q Q 25 Q2 25 Q > bn m to bn m to 5m m to 25m m to m m to 5m m to 25m < m ,392 Undisclosed ,363,576,388,33,58 5,425 Total ,964 2,437 2,56,939,767 8,299 5 Announced deals include completed, pending completion or partially completed transactions. Values are presented at date of announcement. Page 3

14 Location of Acquiring Company Mergers and Acquisitions 2.7 Completed intra European M&A transactions by location of acquiring and target company (Q 6, mn) Location of Target Company AT BE BU CR CY CZ DK EE FI FR DE GR HU IE IT LV LI LU MT NE PL PT RO SK SL ES SW CH UK Total Austria Belgium Bulgaria Croatia Cyprus - Czech Republic Denmark ,693.4 Estonia Finland , ,952.4 France , ,628.4 Germany , ,963.3 Greece Hungary Ireland , ,7.8 Italy 3.3, , ,268.4 Latvia Lithuania Luxembourg Malta Netherlands , , ,742.3 Poland.3,755.,755.4 Portugal Romania Slovak Republic Slovenia Spain ,69. 4,9. Sweden ,6.7 Switzerland , ,24. 4,347.7 United Kingdom 2.2, , , ,53.3 3,986.7 Total.5 2, ,84.3 2, , ,8.4, ,889.6,59.5, , ,326. Page 4

15 2Q 9 4Q 9 2Q 2 4Q 2 2Q 2 4Q 2 2Q 22 4Q 22 2Q 23 4Q 23 2Q 24 4Q 24 2Q 25 4Q 25 Sep-9 Dec-9 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar-2 Jun-2 Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Dec-2 Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 5Q4 6Q4 7Q4 8Q4 9Q4 2Q4 2Q4 22Q4 23Q4 24Q4 25Q4 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Feb- Feb-2 Feb-3 Feb-4 Feb-5 Feb-6 Feb-7 Feb-8 Feb-9 Feb- Feb- Feb-2 Feb-3 Feb-4 Feb-5 Feb-6 Outstanding and trading 3 Outstanding and trading 3. Domestic market capitalisation of listed shares ( Tn) Euro area EU 28 Europe 3.2 Value of euro-denominated listed shares issued by euro area residents ( Tn) Financial NFCs Source: ECB, Datastream, FESE, NASDAQ Nordic, LSEG, World Federation of Exchanges, Bucharest Stock Exchange and CEESEG Prague Source: ECB 3.3 Number of listed companies in Europe 3.4 Domestic market capitalisation of listed shares as proportion of GDP (%) 6,5,4,3,,, 4% 2% % 8% 6% 4% 2% EU 28 Euro Area (EU 9) Europe,9 % Source: ECB, Datastream, FESE, NASDAQ Nordic, LSEG, WFE, Bucharest Stock Exchange and CEESEG Prague 3.5 Turnover ratio of European shares: Dark and Lit (Annualised turnover value/market capitalisation) 8% 6% 4% 2% % 8% 6% 4% 2% % Source: ECB, Datastream, FESE, NASDAQ Nordic, LSEG, WFE, Bucharest Stock Exchange, CEESEG Prague, Swiss Federal Statistical Office and Eurostat 3.6 Value traded in dark pools as proportion of turnover in Exchanges and MTFs 7 9% 8% 7% 6% 5% 4% 3% 2% % % Source: BATS CHI-X, ECB, Datastream, FESE, NASDAQ Nordic, LSEG, WFE, Bucharest Stock Exchange and CEESEG - Prague Source: BATS CHI-X 6 GDP available only as of 4Q5 7 GDP available only as of 4Q5 Page 5

16 Sep-9 Dec-9 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar-2 Jun-2 Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Mar-9 Jun-9 Sep-9 Dec-9 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar-2 Jun-2 Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Outstanding and trading 3.7 Dark trading of indexed shares as proportion of total turnover (dark and lit)- selected indices 8% 6% 4% 2% % 8% 6% 4% 2% % FTSE CAC 4 DAX AEX IBEX 35 FTSE Monthly turnover value on European exchanges and MTFs ( bn) Exchanges MTFs Source: BATS CHI-X Source: BATS CHI-X 8 Under MTFs, the following are aggregated: Aquis, BLINK MTF, Burgundy, BXE Book, CXE Book, Equiduct, ICAP BlockCross, Instinet, Blockmatch, ITG Posit, Liquidnet, NEURO, Nomura NX, NYSE Arca, Pipeline, Quote MTF, SIGMA X MTF, SLS, Smartpool, TOM MTF, Turquoise, UBS MTF, Xetra, and Xetra International. Page 6

17 Mar-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Mar-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Mar-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Mar-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Mar-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Valuation indices and ratios 4 Valuation indices and ratios 4. Price indices of selected stock exchanges (Sep 7 = ) DAX 3 FTSE NIKKEI 225 S&P 5 IBEX 35 CAC Price per earnings ratio (PE ratio) of shares listed in selected European exchanges FTSE 35 DAX 3 IBEX 35 CAC 4 Source: Datastream Source: Datastream 4.3 Price-to-book ratio of shares listed in Stoxx 6 and EU average STOXX EUROPE 6 EU (Reuters Composite) 4.4 Dividend payout ratio of shares listed in selected exchanges (Dividends/Earnings per share) FTSE 35 DAX 3 IBEX 35 CAC 4 Source: Datastream Source: Datastream 4.5 Dividend yield ratio of shares listed in selected exchanges (Dividend/Price) STOXX EUROPE 6 FTSE 35 DAX 3 IBEX 35 CAC Implied volatility of constituent shares of Euro Stoxx 5 (VSTOXX) Source: Datastream Source: Stoxx Page 7

18 Summary of the Methodologies Adopted for this Report Summary of the Methodologies Adopted for this Report. Issuance...4. Equity underwriting The graphs covering historical issuance in Europe are denominated in EUR billions. Historical equity underwriting volumes are calculated by adding the proceeds from Initial Public Offerings (IPOs), Follow-On offerings and Convertible securities issued in exchanges located in the European Union (EU 28) + Switzerland. The member countries of the European Union + Switzerland are maintained during the sample period. The group of countries include: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden the UK and Switzerland. IPOs proceeds include overallotment proceeds (greenshoe), although the value of proceeds is disaggregated in the supporting data file. IPOs exclude introductions (listings unaccompanied by a sale of securities) and readmissions. Value and volume data are sourced from Dealogic. All figures comply with Dealogic s standards of rank eligibility..5., -5 and.8-.9 IPOs by exchange, nationality of the issuing company and industry of issuing company Issuance values are denominated in nominal EUR billion. The figures illustrate the value of proceeds and number of deals of IPOs issued in European exchanges, aggregating by nationality of the exchange (charts.5-.6 and.6), nationality of the issuing company (charts ) and industry of the issuing company (charts.9-.). The aggregated values include overallotment proceeds (greenshoe). Data are sourced from Dealogic comply with Dealogic s standards of rank eligibility... Difference between offer price and -day market price The chart illustrates the quarterly median of the difference between offer price and closing price one day after the IPO was issued. The deals taken into consideration are all the carried out in European exchanges during the quarter. Deals where the -day closing price or the offer prices are not available were not included in the calculation Overallotment proceeds The graph illustrates the value of greenshoe investment in IPOs as proportion of aggregate proceeds in a given quarter. The proportion is illustrated on a weighted average basis. All IPOs are taken into consideration for purposes of the chart, even if greenshoe investment was not disclosed or if it was nil in a given deal. Chart.3 aggregates IPO proceeds by proportion of exercised overallotment of each deal. Deals with undisclosed or nil overallotment are aggregated under % category..4 Average proceeds per IPO The graph shows the average amount of proceeds (including overallotment) per IPO during the quarter IPO by market value of issuing firm Graph.6 shows the number of IPO deals by the pre-deal market value of the issuing firm. In few instances the market value was not disclosed or was not available; these cases were classified as undisclosed. Graph.7 shows the median pre-deal market value of IPO issuing firms. Data are sourced from Dealogic. 2. Mergers and Acquisitions (M&A) and Private Equity Deals where the target or acquiring companies are located in Europe The charts aggregate deal values of M&A transactions where European companies are either target or acquiring parties in the transaction. Charts disaggregate deal values by type of deal: Sponsor, strategic and add-ons. Sponsor deals represent M&A transactions where the acquisition or sale is carried out by a Private Equity (PE), but not by a portfolio company of a PE firm. Strategic mergers are deals where both the target and the acquired company are not PE firms. Add-on deals are transactions where either the acquirer or seller companies are portfolio companies of a PE firm. M&A include both financial and trade sales. Page 8

19 Summary of the Methodologies Adopted for this Report Charts aggregate deal values by the location of the acquiring and target parties. Intra European deals refer to completed deals where both the acquiring and target companies are located in Europe. Non-European acquires European aggregates M&A completed transactions where a company located outside Europe acquires a company located in Europe. European acquires non-european firm are M&A completed transactions where the acquiring party is European and the target company is located outside Europe. Europe is defined as in section (EU 28 + Switzerland) Completed M&A deals between European companies The charts illustrate the quarterly deal values of completed Mergers and Acquisitions (including debt) where the target and acquiring companies are domiciled in Europe (EU 28 + Switzerland). Deal values are denominated in EUR billions. Sponsor, strategic and add-on deals are defined as explained in charts The figures are aggregated by quarter when the deals were completed. Value and volume data are sourced from Dealogic and comply with Dealogic s rank eligibility criteria. 2.. Average deal value This graph illustrates the average deal value of by quarter of completed M&A deals where the target and acquiring companies are located in Europe. The average is calculated as the ratio of deal values in a quarter as proportion of number of deals that reported non-null deal values. Due to reporting limitations, the ratio is different from dividing total deal values by total number of deals given that several deals do not report deal value or the data are missing Announced M&A This graph illustrates announced deal values (including debt) of completed, pending completion or partially completed deals, where the target company is located in Europe (EU 28 + Switzerland). The announced values are aggregated by sponsor, add-on and strategic deals, as described in previous section. Announced values are aggregated on the basis of the announcement date of deals Completed M&A by nationality and industry The figures represent the most recent quarter s value of completed M&A deals of European target firms, aggregating by nationality of target firm (charts 2.8.), nationality of acquiring firm (chart 2.9.) and industry of target firm (chart 2..). Deal values are denominated in nominal EUR billion. Data are sourced from Dealogic and comply with rank eligibility criteria Completed M&A by deal size The table aggregates the value and number of completed M&A deals by completed deal size (including debt) in nominal Euros. M&A deals where the target company is located in Europe are aggregated. 3. Outstanding Market capitalisation The graph illustrates the EUR trillion amount of market capitalisation of European (EU 28+ Switzerland), EU 28 and Euro zone (EU 9) exchanges. The composition of EU 28 and EU 9 countries remains constant throughout the sample period. Graph 3.4 illustrates the market capitalisation of listed shares in Europe, EU 28 and EU 9 exchanges as proportion of nominal GDP. GDP is sourced from Eurostat and the Swiss Federal Statistical Office in its quarterly form. For purposes of this chart, the denominator is calculated as the sum of the past four quarters nominal seasonal adjusted GDP values. Swiss GDP is converted to Euros using ECB EURCH exchange rate at the end of each quarter. 3.2 Euro-denominated listed shares This graph illustrates the outstanding amounts of euro-denominated quoted shares issued by euro area residents, by sector of issuer. The figures are denominated in EUR nominal trillions. Quoted shares include all shares with prices quoted on a recognised stock exchange or other form of regulated market. Quoted shares comprise all financial assets which represent property rights in corporations or quasi-corporations. These financial assets generally entitle the holder to a share in the profits of the corporations or quasicorporations and to a share in their net assets in the event of liquidation. Quoted shares are valued and reported at market values. The data are sourced from the ECB. Page 9

20 Summary of the Methodologies Adopted for this Report 3.3. Number of listed companies This chart aggregates the number of listed companies in European exchanges by Domestic and Foreign firms. Data are sourced from FESE, the World Federation of Exchanges, and LSEG. Data are aggregated by adding individual exchanges reported figures Turnover ratio The chart illustrates the quarterly turnover ratio of EU 28 stock exchanges and selected MTFs calculated as the ratio of four times the quarterly turnover value as proportion of the market capitalisation at the end of the quarter. The figures are presented on a weighted average basis of EU 28 exchanges and MTFs. The following MTFs were selected as representative of the off-exchange market: Aquis, BLINK MTF, Burgundy, BXE Book, CXE Book, Equiduct, ICAP BlockCross, Instinet, Blockmatch, ITG Posit, Liquidnet, NEURO, Nomura NX, NYSE Arca, Pipeline, Quote MTF, SIGMA X MTF, SLS, Smartpool, TOM MTF, Turquoise, UBS MTF, Xetra, and Xetra International. OTC transactions are not included due to potential double counting between TRFs Dark pools turnover The chart illustrates the monthly value traded in dark pools as proportion of turnover in Exchanges and MTFs (Dark and Lit). For dark pool trading, the same MTFs selected for chart 3.5 were taken into consideration. Chart 3.7 illustrates the aggregate proportion of dark pool trading of the constituent shares of the selected indices. Data are sourced from BATS Chi-X MTFs turnover The chart illustrates the quarterly turnover in EUR value in selected MTFs where data was available: Aquis, BLINK MTF, Burgundy, BXE Book, CXE Book, Equiduct, ICAP BlockCross, Instinet, Blockmatch, ITG Posit, Liquidnet, NEURO, Nomura NX, NYSE Arca, Pipeline, Quote MTF, SIGMA X MTF, SLS, Smartpool, TOM MTF, Turquoise, UBS MTF, Xetra, and Xetra International. provided by Datastream, which for purposes of comparability are converted into a price index with January 8 as base (Jan-8 = ) Valuation ratios These graphs illustrate several valuation ratios of selected price indices of European shares. PE ratios are calculated as the ratio of market prices as proportion of market-expected annual earnings. The ratios are sourced from Datastream. Price-to-book ratio represents the average ratio of share market prices as proportion of book prices of Stoxx 6 listed companies and a PanEuropean index of European shares compiled by Thomson Reuters Datastream. VSTOXX 5 index is the market-implied volatility of STOXX 5 listed shares, sourced from Stoxx. 4. Valuation 4.. Price indices of listed shares This graph represents price data for selected European exchanges selected as benchmarks in the respective jurisdictions. The price calculations are Page 2

21 Annex Annex Disclaimer Your receipt of this document is subject to paragraphs 3, 4, 5, 9,, and 3 of the Terms of Use which are applicable to AFME s website (available at and, for the purposes of such Terms of Use, this document shall be considered a Material (regardless of whether you have received or accessed it via AFME s website or otherwise). Page 2

22 London Office 39th Floor 25 Canada Square London E4 5LQ United Kingdom Switchboard: +44 () Brussels Office Rue de la Loi, 82 4 Brussels Belgium Switchboard: +32 () AFME Julio Suarez Manager Christian Krohn Managing Director April Day Director Andrew Brooke Consultant AFME is registered on the EU Transparency Register, registration number Page 22