26 Apr 2018

Equities Data Report Q1 2018

The report provides an update on the performance of the equity market in Europe in areas such as primary issuance, Mergers and Acquisitions (M&A), trading, and valuations. 

Key highlights:

  • Equity underwriting (IPOs, follow-ons and convertibles) on European exchanges accumulated a total of €37.8 bn in proceeds in 1Q18, a 34% decrease from the value originated in 1Q17 (€57.1 bn).

    Notwithstanding the annual decline, IPO issuance in 1Q18 more than doubled the amount issued in the first quarter of 2017

  • Announced Mergers and Acquisitions (M&A) of European companies totalled €338.5 bn, a 45% increase from 1Q17. This includes the announcement of large megadeals such as Sky-Comcast; E.ON SE- innogy SE; and Albertis-Atlantia/ACS. 

    Completed M&A of European companies totalled €174.5 bn in 1Q18, a decrease of 20% from 1Q17 (€ 217.8 bn). The decline was in part driven by a 49% decrease in inbound M&A— particularly from lower deal value of inbound deals from APAC companies targeting European companies.

  • Equity trading activity on European main markets and MTFs generated a total of €3.2 tn in turnover value in 1Q18, an increase of 8% from 1Q17 (€2.9tn).

  • MiFID II dark trading caps: On 7 March 2018, ESMA published the double volume cap (DVC) data files specifying the securities that surpassed the MiFID II limits for dark trading on EU venues. A few observations from the first data batch:
    • Of 18,425 equity-like securities, 741 are currently suspended from dark trading either on specific EU venues (15 securities) or on all EU venues (726). 
    • The instruments suspended are predominantly equity shares of large companies. 620 of the 741 instruments suspended are from companies with market capitalisation above $1bn. 
    • 304 of the 741 suspended instruments have UK ISINs (i.e. UK as the issuing country). 
    • Dark trading volume declined in the immediate aftermath of the DVC files publication, while the proportion of dark traded as large-in-scale (LIS) blocks has increased to c40% (from 12% in early 2017). 
  • Domestic market capitalisation of European listed shares stood at € 13.1 tn at the end of 1Q18, an increase of 1% from the market value at the end of 1Q17 (€13.0 tn).

Annual variation of European Equity activity (EU28 member countries and Switzerland): 1Q18 vs 1Q17