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Data Research
AFME Q3 2023 Equity Primary Markets and Trading Report
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11 Dec 2023
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Author Julio Suarez Director
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AFME is pleased to circulate its Equity Primary Markets and Trading Report for the third quarter of 2023 (Q3 2023).

The report provides an update on the performance of the equity market in Europe in activities such as primary issuance, Mergers and Acquisitions (M&A), equity liquidity structure, and market valuations.

 

Key findings:

  • Equity underwriting on European exchanges for the first three quarters of 2023 rose 15% year-to-date (YtD) on the back of stronger secondary equity offerings (+23% YtD) and issuance of convertible securities (+167% YtD).
    • The increase, however, is relative to a year of low equity capital raising as the issued amount in 2022 was a record low for Europe. The quarterly average raised in 2023 continues significantly below historic averages (€25bn in 2023 vs €45bn 2000-23 historic).
    • IPOs continued subdued with €6.2bn issued in the first three quarters of 2023. This represents a decline of 54% against the same period of 2022 and the lowest year-to-date (YtD) since 2012.
  • Mergers and Acquisitions (M&A) during the first three quarters of the year declined when measured as announced value (-37% YtD) and when measured as completed value (-48% YtD).
  • Average daily equity trading on European main markets and MTFs stood at €74.6bn in the first three quarters of 2023, a 12% decrease compared to the same period of 2022. Q3’23 saw the second-lowest quarterly turnover ratio in our records (since records began in 2017).
  • Double Volume Cap (DVC) update: The number of instruments suspended under the DVC has continued to decline in the course of the year, to 241 suspended instruments (183 at EU Level and 58 at TV level) as of November 2023.
    • The number of suspended instruments is the lowest since April 2021 and the 4th lowest since the inception of the DVC mechanism.
  • European equity trading mix: According to BigXYT data, on-venue trading represented 73% of the total addressable liquidity in Q3’23. Volume traded off-venues, on systematic internalisers and pure OTC, represent the remaining 27% of the volume of the total addressable liquidity.