Large increases of capital are also on the menu

After a good year end 2009, primary activity continued to be dynamic ce quarter: EUR 22.3 billion was raised in Europe, according to preliminary data from Dealogic, or an increase of 37 over one year. The volumes were dominated by increases in capital and investments (12.4 billion), but convertible bonds (4.4 billion) and especially the introductions on the stock market clearly resumed. 5.5 billion was raised by this bias against almost nothing a year previously. "It is one of the major trends of the beginning of this year: the entries in the stock market rebound", supports Marie-Ange Carrère, responsible for syndication shares in Société Générale.

However, the months were not relaxing. Merits of new market turbulence, several large operations had to be cancelled or postponed, the image of Travelport and New Look to London or Taminco in Belgium. Medica, France, had to lower the price of its range. Dealogic total posts almost EUR 4 billion, on seven operations aborted on the quarter in Europe. The return of the introductions of size is because recently, including Kabel Deutschland (760 million euros), in Germany. Brenntag (750 million), which tightened the proposed price, must first not to Frankfurt this week.

Operations are rather made the bottom or the middle of the initial price range, but performance "remain positive, which is a good signal", resumed Marie-Ange Carrère. The spring should be conducive to new venues, in the opinion of professionals. "It expected at least 5 billion euros in operations in Europe by the summer," said Jerome Leleu, responsible for primary in France for Morgan Stanley. Several big names are program normally before the summer such as Amadeus, in Madrid, which should be the biggest introduction of a society - for the time being at least - European of the year (expected EUR 900 million) asset management of Fideuram Italy and, over the longer term, the subsidiary renewable energies of Enel. NXP Dutch would also be in the pipes for about 1 billion dollars, according to several news agencies. The "pipeline" is also supplied with Eastern Europe (with PZU insurance or Tauron, energy) and the United Kingdom (with particular Engyco).

In France, introductions should be more modest: AB Science is likely to come in the stock market in the month of April, and other biotechnology companies. The rating of the Accor services pole is scheduled in early summer. Already, the hexagon was remained in withdrawal this quarter, with only 500 million survey, 74 over a year.

Several other names are circulating (Europcar), while the capital from this bias have reached over three months the highest percentage since 2004, for all of the primary. One-fifth of the funds of the introduction is linked to transfers of funds. "You should see again, even if, in France, this is not necessarily in the short term." "The"dual-track", will continue", takes over Jerome Leleu.

If the introductions on the stock exchange are called upon to take an increasing share, primary activity will not be focused solely on the latter. Assignments of blocks are expected to the image of that of KKR in Legrand last week, or even accelerated as Corio capital increases. "It is a sign that the markets are reopened, emphasize Laurent Capes and Valéry Barrier, Deutsche Bank.". Should see financing of acquisitions through accelerated operations.

Large increases of capital are also on the menu. Volkswagen has announced details of its fundraising of more than 4 billion euros, while the mégaopération of Prudential ( 14 billion) is scheduled for June.