UK Equity Capital Markets update
Welcome to our Winter 2018 UK Equity Capital Markets update, ‘Remaining positive’. Our fifth edition covers:
- Stockmarket performance and equity issuance
- Macroeconomic considerations and sentiment
- A summary of the recently-introduced IPO timetable requirements
- 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.
Following a period of turbulence in the first quarter, global equity markets made good progress over Q2 and into Q3 with a number of IPOs successfully completing. Volatility returned in October with stocks coming under renewed pressure as market sentiment incrementally turned half-empty. Since the low point on 26 October 2018, equity markets have stabilised, with US and European indices gaining around 1.5% as at the time of writing. This ECM update includes further 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 CFOs continue to see Brexit as the biggest threat to business. We are also pleased to include perspectives from international law firm Freshfields on the recently introduced IPO timetable changes, which will impact companies seeking admission to regulated markets.
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 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 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.