IPO Eye – Q1 2014
Retailers’ appetites for IPOs boost UK listings
The London IPO market has had as strong a first quarter performance as any seen in the last 20 years, with 24 IPOs (Main Market and AIM) raising cumulative funds of £3.9bn. The retail sector accounted for the lion’s share of activity, with eight IPOs raising cumulative funds of £2.4bn – 60% of total funds raised.
On the main market, there were seven premium listings over Q1, raising total funds of £2.1bn, with four of these (McColl’s, AO World, Pets at Home, and Poundland) coming from the retail sector.
The Alternative Investment Market (AIM) had its strongest Q1 in over 20 years, producing 16 floats which raised £1.3bn.
- Globally the IPO markets carried last year’s strong form into 2014, producing the best opening quarter since 2011 in terms of the number of IPOs and capital raised.
- The US IPO market is booming, with the number of deals up 113% on Q1 2013.
- The reopening of mainland Chinese exchanges and a strong start to the year in Hong Kong marked by a number of mega deals, saw greater China lead the way in global IPO activity, with 59 deals raising 10.4b (USD).
- EMEIA maintained strong numbers on the back of last year’s resurgence, with retail issuers Q1’s main drivers, accounting for almost a third of all capital raised.