IPOs in Europe Leapfrog U.S.

Cheap valuations and strengthening economies lure buyers to Europe in the third quarter.

The volume of initial public offerings in Europe jumped more than sixfold in the third quarter as investors lured by cheaper valuations and strengthening economies put their money to work in the region.

IPOs in Europe surged at more than double the pace of those in the U.S., according to data compiled by Bloomberg, as Deutsche Annington Immobilien SE, Germany’s largest residential landlord, and U.K. property broker Foxtons Group Plc sold shares. Volume rose more than 10 percent globally compared with a year earlier, weighed down by a 40 percent drop in Asia.

U.S. Funds

U.S. funds that invest in European equities attracted $13.1 billion in the six weeks through Sept. 18, Societe Generale SA and EPFR Global data show, even as investors withdrew $16.9 billion from funds buying U.S. stocks.

Sprouts IPO

While U.S. IPO volume lagged behind Europe in the third quarter, it still tripled to more than $11 billion from a year earlier. Sprouts Farmers Market Inc., the grocer partly owned by Apollo Global Management LLC, and Benefitfocus Inc., a benefits software company, more than doubled in their trading debuts during the quarter as the stock-market rally stoked investors’ confidence and appetite for risk.

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