The pipeline for company flotations in Europe has fallen to its lowest level since the last economic downturn, as businesses shun initial public offerings in favour of sales to private equity firms or strategic buyers.

Bankers expect a total of $6.7bn (€5bn) worth of IPOs from 50 floats to be completed this month and in July, compared with $25.2bn from 95 floats for the same period last year, according to Thomson Financial.