BREXIT and wider volatility pushed European IPO (initial public offering) values down a fifth as markets "hit pause", according to PwC.
European IPO proceeds will end the year around 20 per cent lower than 2017 values, with volumes also down by 20%, the analysts said.
London Stock Exchange and the German Dax are at similar levels of issuing IPOs by value at €10.7 billion and €10.5bn respectively, but London remains Europe’s most active market with 75 IPOs compared to 16 on the Dax.
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The financials sector dominated UK activity and accounted for more than half of UK volumes and almost half of values, PwC said.
The fall in activity is starkest on the BME, Borsa Italiana and Euronext exchanges where values have decreased by 80%, 65% and 53% respectively.
IPO proceeds on the top two exchanges for 2018, the Deutsche Börse and London Stock Exchange, were at €10.7bn and €10.5bn respectively.
Deutsche Borse was boosted by the two largest European mega-IPOs of the year with Knorr-Bremse and Siemens Healthineers which raised €3.9bn and €3.7bn respectively, compared to the only mega-IPO in London - Aston Martin - which raised €1.2bn.
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Peter Whelan, UK IPO lead at PwC, said: "Activity has been subdued across European exchanges for much of 2018, due to high market volatility and a significant correction to global indices in the first half of the year.
"Volatility has continued in recent months, driven by the uncertainty around trade between the US and China, the wider geopolitical climate and the potential end of the current bull run.
"We are seeing a healthy number of companies preparing for an IPO in 2019 despite the ongoing Brexit negotiations which have clearly impacted IPO activity on the London market - we can see that the 'pause button' has been hit for now."
The financials sector has again dominated UK IPOs in 2018 and has accounted for more than half of all London IPOs.
Lucy Tarleton, capital markets director at PwC, said that London has "continued to demonstrate it is still attracting cross-border IPOs, with companies such as Avast plc from the Czech Republic, Slovenia-based Nova Ljubljanska Banka, Africa-focused Vivo Energy and Kazakh group, Kazatomprom, all listing this year".
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