More IPOs expected at Euronext Amsterdam stock exchange in the coming years
Euronext Amsterdam is anticipating a surge in initial public offerings (IPOs) in the coming years, as the global financial climate improves, according to the exchange’s CEO, René van Vlerken. After a period marked by high inflation and rising interest rates that deterred companies from going public, van Vlerken believes more businesses will now be willing to take the step toward listing.
"The past two or three years have been fairly quiet, not just in Amsterdam but globally," van Vlerken said. He attributed this caution to the economic uncertainty caused by inflation and higher interest rates. In 2023, Amsterdam only saw four IPOs, a stark contrast to the historical average for the exchange.
However, with inflation fears now less pronounced, van Vlerken expects a rebound. "There is optimism, and I truly believe that in the coming year and the years ahead, we will see more IPOs," he said. "We are already seeing fresh interest from international companies, and fortunately, we are also witnessing a number of Dutch companies taking concrete steps toward a potential move to the public capital market."
Van Vlerken noted that the Netherlands offers a favorable business climate, which further enhances Amsterdam's position as a hub for companies seeking to list. Despite the lower number of IPOs in recent years, the overall market capitalization of companies listed on Euronext Amsterdam continues to rise, creating a vibrant trading environment. This increased market capitalization has contributed to a more dynamic exchange.
He further emphasized that the volume of trading on the Amsterdam exchange plays a key role in attracting new companies. "Amsterdam has become an international platform, alongside the NYSE, Nasdaq, and London. This is also because we are part of the Euronext group, making us part of a pan-European exchange," van Vlerken explained.
Regarding competition from U.S. exchanges, van Vlerken believes that European markets can still hold their ground, particularly when it comes to European companies with market values of up to 5 billion euros. "These are relatively large companies here, but small in the U.S.," he said. "Americans have a natural preference for American companies, especially in the current climate."
Despite concerns over potential trade tensions between the U.S. and the EU under former President Donald Trump, van Vlerken's optimism remains intact. He believes that import tariffs could put pressure on U.S. economic growth, potentially making the EU a more attractive investment destination. "I could imagine that we will see significant capital flow from America to Europe in the near future," he added.
