War, market jitters threaten Europe's IPO launch season

March was expected to be a busy window for Europe's stock market listings, but Russia's move to redraw borders in Ukraine and market uncertainty due to the escalating security crisis on the continent are prompting companies to put their plans to go public on ice.

Proceeds raised so far this year by companies going public in Europe, the Middle East and Africa are down 79% to $3.1 billion compared to the same period last year, when companies raised $15.1 billion in what was a record-breaking year for equity capital markets activity in the region, according to Refinitiv data.

Soaring stock markets have boosted the IPO market in recent years. But with post-pandemic measures driving up inflation, an increasingly strained economic environment is dampening investor risk appetite for new names.

Expectations had previously pointed to a busy March window for initial public offerings (IPO) this year after several deals were postponed from the end of 2021.

March typically marks the beginning of the IPO season as most companies wait to close their financial year to beef up their IPO prospectus with their most recent results.