European stock market rally fuels up to $5 billion in stock sales overnight

This content was published on September 7, 2021 – 17:50

(Bloomberg) – European stock prices trading near record highs prompted companies and shareholders to cash in up to $5 billion in share offerings on Tuesday, with a $2.9 billion stake sale. dollars in private equity firm EQT AB in the lead.

At least eight deals hit traders’ screens after markets closed, with shareholders including KKR & Co. and Dongfeng Motor Group Co. selling stakes in everything from tech companies SoftwareOne Holding AG and TietoEVRY Oyj to automaker Stellantis NV , the telecommunications company Huber + Suhner AG, online retailer Asos Plc, automotive distributor Inchcape Plc and art supplier Fila SpA. A ninth deal saw human resources services company Adecco Group AG offer new shares.

EQT partners and management are offloading 25.1 billion crowns ($2.94 billion) of the company’s shares in Europe’s biggest share sale since February 2020, according to data compiled by Bloomberg. The buyout firm has brought forward a partial release of a lock-up deal from its 2019 IPO by a year.

Single-day volumes like this are unusual in the European market, which has seen 50 stake sales in the past three months, the data showed. The last time the region saw such a deluge of equity offerings was in May last year.

“It is not surprising to see such a high level of activity after Labor Day in the United States,” said François-Olivier Mercier, head of the capital markets syndicate at UBS Group AG for the Europe, the Middle East and Africa. “Today marks the first day of returning to full liquidity after the summer and the window until the third quarter blackout periods will only last a few weeks,” he said.

European equities are near a record high reached in mid-August on strong corporate earnings and economic growth potential. But attention has now shifted to inflation and monetary policy risks, with investors waiting for the European Central Bank’s meeting on Thursday for clues on how quickly it will move to scale back stimulus. ’emergency.

There was no shortage of takers for Tuesday’s stock sales. Order books for sales in SoftwareOne, TietoEVRY, Huber+Suhner, EQT, Adecco were covered within minutes of their bids opening.

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