IPO Eye Q4 2016
AIM listings keeping the UK IPO market’s light on
Uncertainty around the EU referendum and the subsequent decision to exit the EU had a significant impact on the UK IPO market in 2016.
The year got off to a slow start as the first half saw some companies delaying plans ahead of the referendum, and the unexpected leave vote ensured this uncertainty carried on into the second half of the year, with a marked further reduction in deals and particularly the level of capital raised, making 2016 the slowest year for UK IPOs since 2012.
There was, however, an increase in activity as the year came to an end.
Overall there were 16 IPOs in Q4, slightly higher than the same period in 2015, but the capital raised was 50% less than 2015’s, largely due to the balance in favour of AIM IPOs in Q4.
We did see a number of high profile Main Market listings cancel during this period, and it will be interesting to see if these make a return once the uncertainty affecting the markets dissipates.
Newly listed stocks in Q4 have outperformed veteran assets, which are currently trading an average of 26% above list price, with only one stock with a very small negative growth.
There were 4 PE backed IPOs in Q4.