Why are European equity bankers experiencing a busy period despite the IPO slump?

European equity bankers are experiencing a busy period because listed companies are raising record amounts of capital—$88.7 billion in the first half of 2026, up 35% year-on-year—to fund AI infrastructure, power grid upgrades, and acquisitions; sectors like infrastructure and utilities are conducting massive primary equity raises to support the energy transition and AI buildout, while management teams prioritize maintaining investment-grade credit ratings by sequentially issuing equity for capex.

What is happening to IPO activity in Europe compared to equity issuance by already-listed companies?

IPO activity in Europe has faltered due to geopolitical instability and a software selloff, with defense IPOs like KNDS NV’s dual listing postponed and CSG NV’s shares down ~40% from their January offer price, while equity issuance by existing public companies has surged—reaching their busiest start in five years—as they raise billions quickly to meet capital needs, contrasting sharply with the US where SpaceX’s IPO alone raised nearly as much as all of Europe’s equity issuance.

Europe's Equity Bankers Bet on Capex Wave to Ride Out IPO Slump

Jul 6, 2026

European companies raised $88.7 billion in H1 2026 to fund AI and energy infrastructure, offsetting an IPO slump. Key firms including RWE and Leo Pharma utilized elevated stock prices for capital needs despite geopolitical uncertainties.

bloomberg

2026-07-06

Europe's Equity Bankers Bet on Capex Wave to Ride Out IPO Slump

Europe's Equity Bankers Bet on Capex Wave to Ride Out IPO Slump

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