European IPO levels remain low in Q2 -PwC

* PwC sees low IPO levels through mid-2010

* Q2 IPO levels show typical historical quarterly increase

* LSE led Europe in IPO total volume in Q2

* Warsaw Exchange had greatest number of new listings

FRANKFURT, July 7 (Reuters) - European initial public offerings remained sparse in the second quarter, with most companies likely to defer going public until mid-2010, an expert on new listings from PriceWaterhouseCoopers (PwC) said.

"Whoever isn't forced through necessity by the funds an IPO makes available is waiting," PwC IPO expert Volker Fitzner told Reuters late on Monday.

Investors would rather subscribe to capital increases from companies which are already listed and either avoid public listings altogether or demand such high discounts that issuers cannot except them, Fitzner said.

He said that most of the companies that are planning IPOs would not launch them until the second quarter of 2010.

"The uncertainty in the market will not disappear quickly," Fitzner said.

NO IPO BREAKTHROUGH YET

Over the second quarter in Germany there were two IPOs on Deutsche Boerse's (DB1Gn.DE) Frankfurt exchange: the Californian biotech company Hepahope (0HH1.DE) and online broker Flatex (FLAG.DE).

"The German stock market entrants can't be considered breaking the ice, both had emission volumes that were just too small," Fitzner said.

He said that total volume needed to be in the hundreds of millions of euros to make an impact. The combined size of both IPOs was less than 10 million euros ($13.96 million).

Other European stock markets are not faring any better, according to a study published by PwC.

"The total offering value of IPOs on the European markets in the second quarter of 2009 was 456 million euros, a huge reduction compared with the 9,171 million euros raised in the second quarter of 2008.