Italian 2018 IPO pipeline strong despite political risk

Italy is poised to sustain healthy levels of ECM activity in 2018 off the back of a good year in 2017, mainly boosted by economic recovery as well as by good valuations and favourable government programmes, despite political risk triggered by the upcoming election, according to several ECM lawyers and bankers. The ECM market is set to continue to be upbeat, with a mix of IPOs and potential capital raisings, particularly in the banking sector, on the roster for this year, said Guido Testa, a lawyer at Orrick in Milan. In terms of numbers of IPOs, 2018 is likely to follow in the steps of 2017, one ECM banker said. IPO volumes over the past 12 months doubled 2016’s figures, both on the main market and the AIM segments of the Borsa Italiana, with six and 16 deals recorded by Mergermarket data, respectively. High-speed train operator Nuovo Trasporto Viaggiatori (NTV), animation studio Rainbow, manufacturer of weaving machinery Itema, government-controlled engineering group Ansaldo Energia and hydroelectric public energy company Compagnia Valdostana delle Acque are among the expected listings on Borsa Italiana’s MTA market, the ECM specialists said.

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