Firmer footing

UK Equity Capital Markets update

Spring 2019

Welcome to our Spring 2019 UK Equity Capital Markets update, ‘Firmer footing’. Our sixth edition covers:

  • Stockmarket performance and equity issuance
  • Macroeconomic considerations and sentiment
  • Best-practice IPO transaction management
  • A case study of Lightspeed’s IPO on the TSX, the largest Canadian tech firm IPO since 2010

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 - Spring 2019

ECM Update

Equity markets have posted strong gains in 2019, continuing their recovery from December lows. More accommodative monetary policy and a softening in trade tensions in Q1 have provided support against the backdrop of a global economy slowdown. As at 14 May, the FTSE 100 was 7.6% higher than at the start of this year with all major UK equity indices similarly performing strongly in 2019. This ECM update includes further commentary on equity market performance and activity so far in 2019.

In addition, we provide a summary of our most recent CFO Survey, which shows CFOs continue to exercise caution by employing more defensive strategies. We are also pleased to include a guide to best-practice transaction management for IPO candidates which emphasises the importance of effective company leadership during the IPO process.

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 21%.

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 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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