The vast majority of initial public offerings in the euro zone in 2016 are now trading below their offer price, raising doubts over whether this quarter will herald a rebound in sentiment.

Nearly half the €6.2 billion raised in euro zone IPOs this year came in April, as bankers seized a window for capital raisings between the Easter holiday and the UK vote on EU membership, which could trigger greater market volatility.

In sharp contrast to last year, IPO candidates have not been helped by the performance of the broader stock market. The European Stoxx 600 equity index is down 9 per cent this year and was at a three-week low yesterday. By this time last year the index had risen 16 per cent while companies in Europe had raised about €18.8 billion, according to data provider Dealogic.

“It’s not specific to the companies at all,” said one senior equity banker. “They offered good valuation. It is more symptomatic of the skittishness in the market.”

Among notable IPOs this year, Spanish pizza delivery outfit Telepizza led the declines, with a 23 per cent plunge since its debut in Madrid last week.

Shares of Senvion, the German wind energy firm, Mediawan, a French investment group set up to buy up media assets, and Parques Reunidos, a Spanish amusement park operator, have also disappointed since their market debuts. Others say those companies that made it to the public market this year were not compelling opportunities for investors.

“A lot of the companies that have come to market haven’t been particularly strong or [have] compelling business models,” said Nicholas Melhuish, global head of equities at Amundi, an asset manager.

“The experienced investor should be sceptical of the IPO process,” Mr Melhuish said, pointing out that many of the companies were “dressed up to sell” and had already cycled between public and private ownership. – (2016 The Financial Times)