BNP Paribas hosted its third annual IPO conference, welcoming around 40 companies.
Starting with a trading floor visit, companies from sectors including digital, industrials, consumer goods and fintech, attended a series of panels and networking events hosted by senior bankers and equities specialists. Topics included the IPO price discovery process, the importance of research in a post-MiFID II world and how to maintain market visibility after listing.
- Nine top ranked specialist salespeople met with companies in their respective sectors
- Attendees heard from management at companies that had recently listed in the UK
- One of the world's largest investors in European equities and a senior independent IPO advisor featured as panellists
Themes discussed included:
Ian Richards, Chief Investment Officer at Exane BNP Paribas opened the conference with an overview of global equity markets in 2018: "The growth / inflation mix has been less favourable to risk assets. Furthermore, the US Federal Reserve's policy tightening has reduced liquidity and rising geopolitical risk – from trade tensions with China to Brexit – have all contributed to rising volatility in financial markets."
Market conditions, particularly corrections in June and October, created strong headwinds for IPOs. Nevertheless, with 88 IPOs year to date in Europe, volumes were only slightly below the same point last year.
Andreas Bernstorff, head of ECM EMEA, BNP Paribas highlighted the importance of banks providing IPO candidates with the tools to minimise market risk exposure. "Although regulatory requirements can make the prospect of listing appear daunting, banks can play an important role in improving outcomes for private companies coming to market for the first time. This is now more important than ever as we reach the end of what has been a long period of low volatility."
Nick Webb, Chief Operating Officer, European Cash Equities at Exane BNP Paribas, stressed the importance of research within MiFID II: "Quality research is scarce and the equity industry is consolidating. Choosing a partner with a high quality franchise is critical to the IPO process."
BNP Paribas helped companies raise more than EUR8bn year to date in EMEA IPOs. Its fourth annual IPO conference is scheduled for Q4 2019.
Exane BNP Paribas is responsible for research and distribution within BNP Paribas ECM activities. Exane BNP Paribas was ranked #1 pan-European Equities House by the Extel Survey of investors in 2017 and 2018. Of the 30 sectors surveyed by Extel, Exane BNP Paribas was ranked #1 in 16 as well as in Pan-European Midcap stocks.