1 minute read 22 Jul 2019
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UK IPO activity rebounds after Brexit delay – but what does the future hold?

By

EY UK

Multidisciplinary professional services organisation

1 minute read 22 Jul 2019
Related topics Growth

Extending the Brexit deadline opened a window of opportunity for IPO-ready companies to list on the London markets – but what about the future?

Our latest issue of the IPO Eye reveals that extending the deadline for the UK to leave the EU opened a window of opportunity for IPO-ready companies to list on the London markets.

Financial and support services were Q2’s dominant sectors, raising £1.96bn in total, and London hosted two of the top 10 global IPOs by funds, including Trainline.com.

Following a quiet start to the year, The London Stock Exchange saw a more active Q2, with 15 IPOs collectively raising just under £4bn.

The Main Market saw 10 IPOs which raised a combined £3.8bn, whilst the Alternative Investment Market (AIM) had five new admissions, raising just under £200mn.

Financial and support services were Q2’s dominant sectors, raising £1.96bn in total, and London hosted two of the top 10 global IPOs by funds, including Trainline.com.

Despite the quiet first quarter, Q2’s increase in momentum has meant that, on a cumulative basis, first half activity on the Main Market of 14 listings raising £4.2bn is just above the average level – for both funds and issuers – that we’ve seen over each half year since 2010.

AIM is a different story, with a reduced level of activity both in terms of funds raised and number of issuers continuing a theme of reduced activity over the past 12 months.

The period’s largest IPO was UAE-based financial services company Network International Holdings plc, which raised £1.2bn.

Summary

Despite the delay to Brexit, domestic IPO candidates have pressed ahead with listing plans, and a steady stream of cross-border IPOs also signals that the UK capital markets remain an attractive option for companies looking for high amounts of available capital. But what does the future hold?

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By

EY UK

Multidisciplinary professional services organisation

Related topics Growth