03.03.2020

How To Increase European IPOs

Since the launch of the Capital Markets Union Plan in 2015 the number of European IPOs has decreased. The European IPO Task Force, alarmed by these statistics, reformed in 2019 to address what needs to be done to reverse this trend.

The report provides an overview of issues that companies, investors, exchanges and other market participants are facing in trying to promote companies’ access to capital market financing and suggests measures that European policy makers could implement in order to address these challenges.

The Report recognises six key issues that require attention including: How can

  • IPO ecosystems be improved, specifically for companies and investors?
  • investors’ participation in IPO markets be improved?
  • a European equity culture be created?
  • tax incentives for investment in IPOs and equity be implemented?
  • a regulatory framework that favours technological innovation be created?
  • capital markets be supported in the transition to a sustainable economy?

Caroline Nagtegaal, Member of the European Parliament (VVD/Renew Europe) and Chair of the European IPO Task Force said:

“The number of IPOs on European markets has been falling for more than 20 years, with consequences for society. Markets that have a higher share of equity financing are better equipped to handle economic shocks, create jobs, allow investors to participate in the value creation of fast-growing companies, and allocate more funding towards a sustainable economy. The European economy should thus be less reliant on bank-based financing. This report can help policymakers in deciding what needs to be done to improve our IPO markets’

Background

The European IPO Task Force is composed of corporate representatives and independent experts from major segments of the financial sector involved in the admission of companies to listing. Accountancy Europe, CFA Institute, EBRD and FESE took the lead in relaunching the European IPO Task Force to assess recent developments in IPO markets and take stock on the outcomes of the recommendations provided by the original European IPO Task Force in 2015. In addition, the Task Force has assessed developments related to sustainable finance, new technologies and developments in CEE markets.

Source: European IPO Task Force

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