(Bloomberg) -- Europe’s IPO pipeline is shrinking even more, as long-time listing candidates worth over $10 billion start to attract bids at a time when markets are set to remain rocky for the foreseeable future.

Eni SpA is weighing a takeover of Neptune Energy Group Ltd., the $5 billion UK explorer that’s been studying a London listing since last year, Bloomberg News reported last week. Meanwhile, an Abu Dhabi consortium is exploring an investment in GEMS Education, which is one of the world’s biggest private school operators and has been discussing an IPO on-and-off since at least 2018.

After years trying to find just the right moment for a public debut, the firms’ private equity backers could decide it’s time to stop waiting. Listings on European exchanges are already down 76% this year to about $22 billion, according to data compiled by Bloomberg, as high inflation and surging volatility zap investors’ risk appetite. 

Eamon Brabazon, Bank of America Corp.’s co-head of mergers and acquisitions for Europe, the Middle East and Africa, said companies are studying minority stake sales and control transactions in tandem. The usual practice of exploring a sale and listing simultaneously could regain popularity next year, he said. 

Waiting Game

“There may well be a quarter or two lag between the re-acceleration of M&A and a meaningful reopening of IPO windows,” Brabazon said. 

Several other firms have opted for alternative deals in recent months after shying away from listings. Cinven agreed in June to sell medical freight specialist Envirotainer AB to EQT AB at a $3 billion valuation, after earlier hiring banks to explore an IPO. Inspired Education Group’s private equity backers ended up selling a minority stake to Stonepeak after weighing options including a share sale. 

Finnish contract manufacturer Valmet Automotive Plc also said last month it’s scrapping its IPO and will look for alternative funding sources. Eni SpA, which made two separate attempts to list its renewables this year, has said it won’t try again until next year at the earliest. 

Other potential listings that have gotten pushed back to next year include Thyssenkrupp AG’s electrolysis plant business Nucera, Olam International Ltd.’s food ingredients arm and EQT AB’s skincare company Galderma. These IPOs were originally expected to create listed companies with a combined value of about $50 billion.

--With assistance from Dinesh Nair.

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