Ionos, Euro Group Set to Reopen Europe’s Moribund IPO Market

(Bloomberg) — United Internet AG’s web-hosting unit Ionos Group and motor parts maker Euro Group are set to be the first major companies to try to open up Europe’s market for initial public offerings after months of quiet. 

Ionos is considering kicking off its Frankfurt share sale as soon as next week, while Euro Group aims to launch its Milan IPO in February, people with knowledge of the matter said. The companies have held early meetings with fund managers to gauge demand, according to the people, who asked not to be identified because the information is private. 

Warburg Pincus-backed Ionos could garner a potential market value of as much as €5 billion ($5.3 billion) based on early feedback, Bloomberg News reported last month. Euro Group, which makes stators and rotors used in electric motors, is considering raising around €500 million from its share sale and may seek a valuation of about €1.5 billion, the people said.

Deliberations are ongoing, and the timing and size of the potential offerings could change. Representatives for United Internet and Euro Group declined to comment. 

The global IPO market crawled to a virtual standstill last year as investors turned risk-averse amid rising interest rates and heightened inflation. The latest issuers are betting on pent-up demand among investors and a stabilized economic outlook to buoy demand for fresh offerings.  

Read more: After This Year’s IPO Slump, Bankers Are Wary of 2023 Relief

IPO proceeds tumbled by more than two-thirds in 2022, leading to sharp declines in fees across Wall Street and causing headcount reductions. After a tumultuous year, bankers are now cautiously expecting a recovery in the months ahead, fueled in part by a full pipeline of large listing candidates and signs of a stock market rebound.

Lottomatica, the Italian gambling company backed by Apollo Global Management Inc., is considering a Milan initial public offering as soon as the second quarter that could raise about $1 billion, Bloomberg News reported this week. 

–With assistance from Jan-Henrik Förster, Eyk Henning and Aaron Kirchfeld.

©2023 Bloomberg L.P.

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