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Building resilience

UK Equity Capital Markets update

Spring 2018

Welcome to our spring 2018 UK Equity Capital Markets update, ‘Building Resilience’. Our fourth edition covers:

  • Stockmarket performance and equity issuance
  • Macroeconomic considerations and sentiment
  • A summary of the impact of three new IFRS accounting standards
  • A case study of Xafinity’s acquisition of Punter Southall Holdings

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

Much of the first quarter of 2018 saw rising volatility and a resultant negative impact on market performance. Many of the gains seen at the end of 2017 were lost and against this backdrop the number of IPOs was somewhat muted. Towards the end of Q1 and beyond markets have recovered and volatility has stabilised. This ECM update includes commentary on equity market performance and activity so far in 2018.

In addition, we provide a summary of our most recent CFO Survey, which shows slightly firmer business confidence and an easing of Brexit concerns and set out an overview of the implications to companies of the introduction of new accounting standards – IFRS 9, IFRS 15 and IFRS 16. These can have a significant impact on companies’ historic, current and forecast financial information, including a number of potential issuers currently contemplating an IPO.

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 nearly 30%.

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 approximately 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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