16 Jan 2018

Equities Data Report: Q4 2017

AFME is pleased to circulate its Equity Primary Markets and Trading Report for the fourth quarter of 2017 (4Q 2017).

The report provides an update on the performance of the equity market in Europe in areas such as 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 €211.3 bn in proceeds in 2017, a 44% increase from the value originated in 2016 (€147.1 bn).

    - The increase was led by a 59% annual growth in follow-on offerings;
    - Increase of 40% in proceeds from primary offerings (IPOs).

  • Completed Mergers and Acquisitions (M&A) of European companies totalled €897.4 bn in 2017, a decrease 14% from the deal value of completed deals in 2016 (€1,039.8 bn).

    The decrease was, in part, attributed to fewer “megadeals” during the year (deal value above €10bn), from 13 deals in 2016 representing €364bn in deal value, to 11 deals in 2017 accumulating a total of €235bn in deal value.

    Average deal values also declined during the last year, from an average of €251mm in 2016 to €215mm in 2017

  • Equity trading activity on European main markets and MTFs generated a total of €11.4 tn in turnover value in 2017, a decrease of 4% from the value traded in 2016 (€11.8 tn).

  • Blocktrades and MiFID II: The average weekly turnover of block trades increased from €2.5 bn in 1Q17 to €3.9 bn in 4Q17. According to Fidessa data, block trades as a proportion of total dark trading increased to 28.7% in the first weeks of January (just after MiFID II went live). This compares with a proportion of 12% observed at the beginning of 2017. 

    Dark trading volumes declined in the second half of December 2017 and continued at below-average levels during the first two weeks of 2018, mostly attributed to seasonal factors.

  • Market capitalisation of European listed shares stood at €13.0 tn at the end of 2017, an increase of 11% from the market value at the end of 2016 (€11.7 tn). The increase was driven by higher valuations and earnings performance, not offset by recent delistings and fewer listed companies.

Annual variation of European Equity activity (EU28 member countries and Switzerland): 2017FY