Paris Listings See 92% Decrease in 2023, While London Remains Robust: Research Reveals

# Paris Stock Exchange Sees Funds Raised by Companies Fall by 92% in First Half of 2023 According to new research by KPMG UK, funds raised by companies debuting on the Paris stock exchange have fallen by a staggering 92% in the first half of 2023 compared to the same period last year. This decline in funds raised on the Euronext Paris reflects the underperformance of the exchange compared to other exchanges in the region. The research by KPMG UK also reveals a mixed picture for Europe so far this year, with factors such as higher interest rates globally, price pressures for consumers, and continuing geopolitical concerns clouding investor sentiment. In comparison, companies listed on the London Stock Exchange raised £586.2 million ($751.7 million) in funds through initial public offerings (IPOs) during the first half of the year, which is the same as the amount raised in the same period of 2022. However, there are signs of a more subdued investment environment, as funds raised through "further issues" (additional share offerings to raise additional cash) decreased by 36% to £3.65 billion. The number of companies listing on the London Stock Exchange, including both the main and smaller alternative investment (AIM) markets, also decreased from 29 to 17. This decrease is significantly lower compared to the activity in 2021, when there were 48 London listings in the first half of the year and a total of £19.8 billion raised. ## Nasdaq Nordic and Euronext Amsterdam Experience Significant Drops in Funds Raised In addition to the decline on the Paris stock exchange, funds raised on the Nasdaq Nordic fell by a substantial 86.9%, while the Euronext Amsterdam experienced a complete drying up of funds raised. These declines indicate a challenging investment environment on these exchanges. However, it wasn't all bad news for European stock exchanges. The Euronext Milan index and the German Deutsche Börse saw boosts from significant listings. Euronext Milan benefited from the 600 million euro ($664.2 million) initial public offering of Italian gambling firm Lottomatica in May, which is the largest IPO in Europe so far this year. Germany's index also saw a positive impact from the 388.5 million euro IPO of cloud computing firm IONOS Group. Overall, the London Stock Exchange demonstrated greater resilience compared to its European counterparts during the first half of 2023. Despite the challenging times, more traditional listing venues have fared better. This highlights the importance of adaptability and resilience in the ever-changing investment landscape.

Conclusion

The significant decline in funds raised on the Paris stock exchange, as well as on other European exchanges like Nasdaq Nordic and Euronext Amsterdam, paints a challenging investment environment for new businesses. This underperformance is likely influenced by various factors, including higher global interest rates, price pressures for consumers, and ongoing geopolitical concerns. These issues have clouded investor sentiment and made it more difficult for companies to raise funds through initial public offerings (IPOs) and further share offerings. In contrast, the London Stock Exchange has shown greater resilience during the first half of 2023, with a steady amount of funds raised through IPOs. However, there are signs of a subdued investment environment, as "further issues" saw a decrease in funds raised. Additionally, the number of companies listing on the London Stock Exchange has also decreased compared to previous years. For new businesses looking to raise capital through stock exchanges, it is crucial to consider the volatile and uncertain investment landscape. The decline in funds raised on various European exchanges highlights the importance of adaptability and resilience. It may be necessary for new businesses to explore alternative funding options or focus on markets that have shown better performance, such as the London Stock Exchange. Overall, the ability to navigate turbulent market conditions and stay attuned to investor sentiment will be crucial for new businesses seeking to raise funds and succeed in the ever-changing investment landscape. Article First Published at: https://www.cnbc.com/2023/07/26/paris-company-listings-raise-92percent-less-in-2023-research-says-but-london-holds-up.html