Europe IPO market booming compared to US

By Marc Castro

Sep 29, 2013 09:06 PM EDT

The cheap valuations and the strengthening economies were the main factors that put investments to full work in Europe, resulting in a sixfold volume increase in the third quarter for initial public offers in the region. The IPOs in Europe, according to data collated by Blooberg, surged to more than double the pace of those across the Pond. 

Examples of the big firms going on IPOs include Deuthsche Annington Immobilien SE, the largest residential landlord in Germany as well as Foxtons Group Plc, the largest property broker in the UK. The volumes surged 10% globally compared to the previous year, as 2012 was depressed because of the 40% drop in Asia.

The investors are flocking to Europe after the European Central Bank President Mario Draghi and Chancellor Angela Merkel worked to ease the European debt crisis as well as to put to an end the recession besetting the region. Now, the prospects in Europe, such as the USD1 billion Royal Mail Group Ltd and Merlin Entertainment Group, both from the UK would further boost Europe's performance compared to the limited growth prospects in the United States.

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