Italy

The two IPOs live in the European market are both progressing steadily, despite the shock of the UK’s decision to leave the European Union, which has sent share prices whizzing in all directions.

Amid the chaos in global markets on June 24, the IPO of Veneto Banca reached its expected conclusion: the book closed almost empty and the listing was cancelled, leaving Fondo Atlante, the Italian bank rescue fund, to provide the €1bn of capital Veneto had to raise.

Spain’s 10 year bonds on Monday reversed all their Brexit driven losses, after the country’s voters showed a clear preference for pro-European Union parties at a general election on Sunday.

The UK may have knocked the eurozone periphery off a cliff as it stumbled on its way out of the European Union on Friday morning. Government bond spreads on Friday echoed those during the eurozone sovereign debt crisis. The gap between Germany and the periphery has opened up like the chasm that has developed between UK voters and the political establishment.

Corrado Passera is the favoured candidate to become the next chief executive of UniCredit, but the bank’s international investors are on a collision course with its board over the appointment of a successor to Federico Ghizzoni, who stepped down last month.

Despite Italian bank stocks being badly out of favour, Banco Popolare has achieved 99.4% subscription for its €996m rights issue, leaving only a tiny rump to be placed in the coming days. But Veneto Banca's IPO is likely to fail, leaving the bank in the arms of Fondo Atlante.

Waste Italia, the Italian disposal and recycling company, has requested a standstill from investors in its €200m high yield bond, after missing a coupon payment on it in May.

Enav, the Italian air traffic control system company, began its privatisation IPO on Monday, with the publication of research. Meanwhile, plans are taking shape for the IPO of Avio, the Italian space propulsion firm.

The €2.5bn rights issue of Banco Popular Español has been oversubscribed, the bank will announce on Friday, after it won solid support from core shareholders.

The €1bn IPO and highly dilutive capital increase of Veneto Banca is thought likely by bankers involved to be bought in its entirety by Fondo Atlante, as happened to the similar €1.5bn deal for Banca Popolare di Vicenza at the beginning of May.

Salini Impregilo, the Italian construction firm, sold €300m of non-callable notes on Thursday to refinance its old 2018 notes, and finance part of its acquisition of US peer Lane Industries.

A vote for the UK to exit the European Union next week is likely to intensely magnify a strong rush into safe haven assets, but some bankers are still confident that after the initial furore of a ‘Brexit’ there could be room for issuers eyeing euro deals in July to go ahead. And, if the UK opts to stay in the EU, issuers are likely to be lining up to print in July.