No EU IPO revival without deeper capital market integration, says AFME

The initial public offering market in the EU is unlikely to significantly improve in 2026 without co-ordinated efforts to simplify regulation and deepen integration in the bloc’s capital markets, a leading trade body has warned.

Adam Farkas, who leads the Association for Financial Markets in Europe, told The Banker there was little prospect of “an immediate breakthrough” in IPO listings in the new year, despite large originations such as the €3.2bn listing by Verisure on Nasdaq Stockholm in the second half of this year.

The value of EU IPOs remains flat for the year to date compared to the same period last year, in contrast to surging listing valuations in the US and China.

“Market fragmentation is a structural issue that cannot be resolved quickly, even with the savings and investments union package,” Farkas told The Banker.

“Meaningful progress will require sustained efforts to simplify regulation and integrate EU capital markets over the longer term.”

Farkas’s comments strike a bearish tone compared with that of some bankers in recent weeks.

“It has been somewhat of a quiet market this year but we’re seeing a number of companies looking at European IPOs, which is positive going into 2026,” said Patrick Frowein, head of investment banking Europe at Citigroup at a bank event on November 24.

Lawrence Jamieson, co-head of Emea ECM at Barclays Investment Bank, called the post-summer class of IPOs “a bit of a turning point”, in comments first reported by Bloomberg.

“It certainly feels the backdrop for the European IPO market is the most constructive it has been since the start of the Ukraine war,” he said.

Czech arms manufacturer Czechoslovak Group is reported to be looking at an IPO in Amsterdam next year at a valuation of up to €30bn, with Bloomberg reporting that Franco-German tankmaker KNDS and lift manufacturer TK Elevator have appointed financial advisers to help them prepare for an IPO sometime next year.

“Our view is that more than two-thirds of the CEOs we have discussions with that lead manufacturing companies within the EU are developing a comprehensive industrialisation strategy,” said Nacho Gutiérrez-Orrantia, CEO of Citibank Europe, at the bank’s event.

“The needs and the diagnosis are very clear . . . it’s about execution and it’s about capital formation. The boards and the C-suite that we talk to are all focused on growth and capital reallocation and productivity,” he added.

In its annual capital markets union report, published on Wednesday, AFME has urged EU policymakers to simplify the bloc’s regulatory framework to boost competitiveness.