The demand forecast period is shortened to avoid stock market volatility.
Volatility increased after Trump took office
Investment sentiment for European assets ↑
Yonhap News
As global stock market volatility increased after President Donald Trump took office, global investment banks (IBs) were found to be shortening the demand forecast period for initial public offerings (IPOs) in Europe to protect newly listed companies.
According to Dealogic data on the 8th (local time), the demand forecast period after the IPO announcement was calculated to be 5 days on average for European listed companies. This is the lowest ever.
Czechoslovakia Group (CSG) was recognized as a corporate value of 33 billion euros (approximately 57.1487 trillion won) on the first day of listing on the Amsterdam stock exchange last month. This was the largest IPO in the history of a European defense company, but CSG’s demand forecast period was only three days.
Austria’s Asta Energy soared 46% on the first day of listing on the Frankfurt stock exchange at the end of January, even though it only went through four days of marketing (investor recruitment).
“The key to European IPOs since the financial crisis has been risk mitigation,” said Antoine Noble, head of equity markets for Northern Europe and the Middle East and Africa at BNP Paribas.
The reason for shortening the demand forecast period was the strong demand from investors for European assets. IBs focused on meeting with potential investors months before the official announcement of the IPO, and this strategy became increasingly successful as assets were concentrated in a few large investment firms.
Noblo, who handled the CSG deal, said BNPP contacted more than 150 investors in the months leading up to the formal fundraising period. “The market is so volatile and uncertain,” he said. “Is it really worth investing that much time in the market when everyone is trying to get you to order?”
The fact that global stock markets plummeted after U.S. President Trump announced tariffs in April last year is also seen as a reason for shortening the demand forecast period. Global trade came to a halt as companies were busy assessing the impact of tariffs. This year, the market was shaken as President Trump’s attempt to acquire Greenland caused a political crisis in Europe.
“Everyone is trying to further shorten trade execution periods to reduce exposure to unexpected market movements,” said Soanvita Arora, co-head of global equity markets at Societe Generale.
As global investors tend to diversify their portfolios that were overly concentrated in the U.S., IBs have been helped to accelerate the investment attraction process. The Financial Times (FT) reported that this movement of investors to diversify led to a tendency to turn their eyes to Europe.
Reporter Hwang Yun-ju hyj@asiae.co.kr
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date: 2026-02-08 20:47:00
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