LONDON: The European market for initial public offerings has come roaring back this year after a moribund, COVID-hit 2020, but the poor debut by Deliveroo has amplified concerns around whether the momentum can last.
But the market backdrop is a concern to some. It has turned more volatile in recent weeks and rising government bond yields may mean worse IPO conditions for the rest of 2021, with mixed trading for several of this year's debutants. Equity capital market bankers said that while they believe overall sentiment remains supportive, investors are getting pickier and will concentrate on what they view as quality deals.
That market segment has seen a surge in activity this year in the United States and to a much lesser extent in Europe, but dozens of additional deals are in the pipeline in Amsterdam, Frankfurt and London, people familiar with the industry say.