BofA expands European equity markets

Bank of America Corp. (BofA) is expanding its foothold in Europe’s equity capital markets, focusing on deals of all sizes, Bloomberg reported on Tuesday.

James Palmer, the bank’s head of equity capital markets for Europe, the Middle East, and Africa, is strategically targeting stake sales by major shareholders while also securing roles for smaller blocks valued under $300 million.

Notably, BofA has facilitated the entry of first-time sellers into the market, reflecting a deliberate shift in strategy.

The European market dynamics have witnessed significant changes, with BofA climbing alongside BNP Paribas SA in Bloomberg’s EMEA IPO league table for the second quarter, propelled by high-profile IPOs like those of Puig Brands SA and CVC Capital Partners Plc.

This strategic move aligns with BofA’s focus on long-term growth in the region, underscored by its increased market share in EMEA equity offerings since 2022.

BofA’s success in securing mandates stems from a nuanced approach, emphasising the identification of specific investor demand rather than solely relying on aggressive pricing or blind bidding.

Recent senior appointments within the bank further reinforce its commitment to bolstering key areas such as its UK, equity-linked, and Benelux ECM teams.

Equity capital markets activity in Europe is on the upswing, paralleling the rising trend in stocks, with IPOs playing a significant role. European companies have raised nearly $13 billion through IPOs in 2024, double the amount from the previous year.

Bank of America’s involvement in notable IPOs, including those of Galderma Group AG and Planisware SA, highlights its pivotal role in facilitating market offerings. Looking ahead, Bank of America anticipates a more diverse mix of offerings, with IPOs poised to regain momentum in the remainder of the year.