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Remaining positive

UK Equity Capital Markets update

Winter 2018

Welcome to our Winter 2018 UK Equity Capital Markets update, ‘Remaining positive’, which looks at the equity market performance and key factors affecting market sentiment.

This edition covers:

  • Stockmarket performance and equity issuance
  • Macroeconomic considerations and sentiment
  • A summary of the recently-introduced IPO timetable requirements, including perspectives from international law firm Freshfields
  • A case study of DBAY’s public takeover of Harvey Nash Group plc

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.

UK Equity Capital Markets update - Winter 2018

About the report

Following a turbulent first quarter earlier this year, global equity markets improved in Q2 and into Q3 with a number of successful IPO completions. However, volatility returned in October as stocks came under renewed pressure and market sentiment incrementally turned half-empty. Since reaching its lowest point on 26 October 2018, equity markets have stabalised, with US and European indices gaining around 1.5% at the time of writing. This update includes further commentary on equity market performance and activity so far in 2018.

In addition, we include perspectives from international law firm Freshfields on the recent IPO timetable changes, which will impact companies seeking admission to regulated markets. We also provide a summary of our most recent CFO Survey, which shows that CFOs continue to see Brexit as the biggest threat to business.

IPO Barometer

Our IPO Barometer looks at the performance of IPOs against the broader market, demonstrating that recent Premium IPOs have outperformed the FTSE 350 on average by nearly 18%.

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 we have worked on approximately half of the UK’s premium trading company IPOs since the beginning of 2014 across multiple industries.

Our 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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