Paris, 6 October 2026 – European equity issuance declined by about 20% year on year in the third quarter as higher borrowing costs and unsettled markets interrupted the momentum established during the first half, leaving investment banks and prospective issuers looking to 2027 for a more durable reopening of the region’s initial public offering pipeline.
The slowdown followed a comparatively strong opening six months, when European equity issuance reached about US$89 billion, 36% above the corresponding period a year earlier. The contrast illustrates how quickly financing conditions changed as persistent inflation, elevated government-bond yields and policy uncertainty raised the return demanded by investors. Companies could still raise capital, but boards became more selective about timing and valuation.
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