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IPO investments deliver 5.5% higher return than the FTSE 100, ahead of a bumper

4 September 2014

The 28 IPOs listed so far this year outperformed the FTSE 100 by 5.5%, according to research by Deloitte. Indeed, since the listing of Saga on the main market in May, 13 of the subsequent 15 IPOs did better than the FTSE 100 Index.

John Hammond, head of equity capital markets at Deloitte, said: “Some of the frothy pricing of the first quarter dissipated in the second quarter and, as a result, nearly all the IPOs that completed in the weeks before the summer holidays outperformed the market.   

“Overall, to the end of August 2014, the 28 IPOs achieved an average return of 7.0%, far outstripping the 1.5% return on the FTSE 100.

“This points to a busy autumn for new IPO activity after only two new listings in July, and none in August. From our own pipeline, we anticipate a significant number of new listings, heralding a return to pre-summer levels. We are particularly watching the financial services and TMT sectors.”

Note: IPOs as referred to above are defined as London Main Market Listings of shares for trading companies (i.e. investment companies, venture capital trusts, transfers from other markets and cash shells have been excluded).

IPO Barometer - Year to 29 August 2014 (below)

End

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited

"Nearly all the IPOs that completed in the weeks before the summer holidays outperformed the market" - John Hammond, head of equity capital markets

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