IPO Eye – Q2 2013

  • Share

Play it again, London

The London Stock Exchange continues to show signs of recovery, already raising more capital in the year to date than in all of 2012. London is also starting to reassert its global status, ranking third in the highest number of deals this quarter, behind only the New York Stock Exchange and the NASDAQ. An appealing list of high profile IPOs could also materialise in the coming months.

View Q2 2013 Market Insights

 

Market commentary

  • There were three Main Market IPOs in Q2, compared to four last quarter (including two readmissions). Q2 2012 saw only one IPO on the main market.
  • AIM continues to attract a healthy number of admissions, with eleven listings during Q2, compared to five in Q1. The last time we saw a similar level of AIM activity was Q2 2012’s eleven listings.
  • Total funds raised in the year to date were £2.4bn, including funds raised this quarter of £1.2bn. This already surpasses 2012’s total (£1.5bn), and that raised in Q2 2012 (£0.2bn).
  • So far in 2013, including readmissions, there have been seven Main Market IPOs (full year 2012: four), and sixteen AIM listings (full year 2012: 32).
  • There were no GDR listings during Q2, compared to one in Q1.
  • Q2 also saw two conversions from the Main Market to AIM

London continues to attract a healthy blend of international and domestic offerings. Six of the fourteen companies raising funds were non-UK domiciled. The UAE was responsible for bringing the second healthcare IPO in a year – Al Noor Hospitals – to the Main Market, following NMC Healthcare, which listed last June. Other listings included offerings from Nigeria, Israel and the US.

No particular sector dominated in Q2, with a diverse range of companies coming to market, including technology, oil and gas exploration, healthcare and insurance providers.

From a global point of view, the IPO window is also reopening, thanks to rising equity markets and a wave of recent larger deals globally, which is having an ice-breaker impact on the market.

Q2 2013 saw 194 deals worldwide, raising US$44.4bn, compared to 206 deals raising US$41.8bn in the same period last year, an 6% increase in capital raised.

Combined with improved global monetary policy, market confidence is growing, particularly in the US, Japan, UK and parts of Latin America. These factors, combined with a strong registration pipeline, suggest a strong second half for the year.