Remaining focused

UK Equity Capital Markets update

Winter 2017/18

Welcome to our winter UK Equity Capital Markets update, ‘Remaining focused’. This is our third edition, which was published shortly before Christmas, and covers:

  • Stockmarket performance and equity issuance
  • Macroeconomic considerations and sentiment
  • Insights on IPO tax structuring
  • FTSE 250 executive remuneration developments
  • A case study of the Bakkavor IPO – one of the largest IPOs in 2017

These updates are aimed at management teams of companies contemplating an IPO as well as those that are already listed, shareholders, including private equity executives, and fellow equity capital market advisers.

ECM Update

The strong performance of equity capital markets and the increase in the number of IPOs and value of overall fundraises in the UK in 2017 has been widely publicised. We highlight these same themes in this update but extend our analysis to provide additional insight into important issues for PLCs and private companies contemplating an IPO.

In our last edition, our reward team set out its thoughts on market practice for executive remuneration on IPOs. We continue this theme and provide an analysis of some of the main trends in remuneration amongst FTSE 250 companies. In addition, our ECM tax team looks at the important topic of tax structuring at IPO and why getting this right really matters.

IPO Barometer

This Equity Capital Market update also includes the latest Deloitte IPO Barometer, which looks at the performance of IPOs against the broader market – demonstrating that recent Premium IPOs have outperformed the FTSE 350 on average by over 28%.

About the team

The Deloitte ECM team comprises professionals from our Financial Advisory, Audit, Tax and Consulting businesses with varied backgrounds including accounting, law and investment banking to provide a multi-disciplinary service model. Together they have worked on half of UK Premium trading company IPOs since the beginning of 2014 across multiple industries.

The team offers a wide variety of services including Reporting Accountant, acting as Sponsor, Nomad or Independent Adviser, advising public companies on the Takeover Code in relation to M&A, providing executive remuneration and tax advice and both Readiness and Assist work to prepare for and to support an IPO.

We hope you will find this ECM update both valuable and interesting. Please do get in touch if we can be of assistance.

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