Equity underwriting on European exchanges, (EU member countries, UK and Switzerland) for the first three quarters of 2023 rose 15% year-to-date (YtD) on the back of stronger secondary equity offerings (up 23% YtD) and issuance of convertible securities (up 167% YtD). But the issued amount for 2023 YtD stands as the third lowest in more than a decade.
The London Stock Exchange (LSE) main market led in total equity underwriting with a total of €16.8 billion during the first three quarters of the year, followed by Euronext Amsterdam (€8.4bn) and Euronext Paris (€7.3bn).
The increase, however, is relative to a year of low equity capital raising as the issued amount in 2022 was a record low for Europe. The quarterly average raised in 2023 continues significantly below historic averages (€25bn in 2023 vs €45bbn 2000-23 historic). Initial Public Offerings (IPOs) were down 54% YtD.
Average daily equity trading on European main markets and MTFs stood at €74.6 billion in the first three quarters of 2023, a 12% decrease compared to the same period of 2022. Q3’23 saw the second lowest quarterly turnover ratio since records began in 2017.
The data is drawn from the Association for Financial Markets in Europe (AFME) Equity Primary Markets and Trading Report for Q3 2023, which provides an update on the performance of the equity market in Europe.
Equity issuance on junior exchanges dropped by nearly half (46%) in Q3 2023 (€800m) against Q2 2022 (€1.5bn)
According to big XYT data, on-venue trading represented 73% of the total addressable liquidity in Q3 2023. Volume traded off-venues, on systematic internalisers and pure OTC, represent the remaining 27% of the volume of the total addressable liquidity.
© Markets Media Europe 2023
