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Thriving after recovery

UK Equity Capital Markets update

Summer 2020

Welcome to our Summer 2020 UK Equity Capital Markets update, ‘Thriving after recovery’. Our eighth edition covers:

  • Stockmarket performance and equity issuance;
  • Macroeconomic considerations and sentiment;
  • Hot topics on how businesses can recover from COVID-19, secondary fundraisings and public to private takeovers; and
  • Case studies of Whitbread’s recent £1bn right issue and the £63m sale of Murgitroyd Group plc to Sovereign Capital.

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 - Summer 2020

ECM Update

The COVID-19 pandemic has caused significant turbulence in equity capital markets in 2020, but stocks are recovering as economies reopen globally.

As at 5 June 2020, the FTSE 100 was 29.8% higher since its 23 March low.

Healthcare has been the best performing sector since the start of 2020, with Oil & Gas being the main detractor.

Secondary issuances have been at a high level as a result of the pandemic, with more than £14bn raised since the start of the year.

Cashbox placings have proved a popular fundraising method and we expect to see an increasing number of rights issues over the coming months.

In addition, we provide a summary of our most recent CFO Survey, which shows an increasing focus on cost reduction for CFOs.

UK equity market price performance by sector – since 1 January 2020

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.

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 services 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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