IPOs boosted in strong first half of the year
29 June 2015
The 16 IPOs that have completed so far this year generated an average return of 17.8% according to Deloitte, the business advisory firm. Year to date, these IPOs have outperformed the FTSE 100 by 18.4 percentage points.
John Hammond, head of equity capital markets at Deloitte, said:
“In a half year that has seen the FTSE reach all-time highs in April and a big weekly fall in early June, it is encouraging that the cohort of 2015 IPOs have performed so strongly. As we have seen for the last few years now it is largely UK PE-backed businesses that are successfully listing in London, indicating that IPO valuations remain attractive both to PE shareholders and investing institutions.”
An investment of £1,000 in each of the 16 IPOs is now worth £18,855, whereas a £1,000 investment in the FTSE 100 at each IPO date would have fallen slightly to £15,915.
Chris Nicholls, head of IPO and equity advisory at Deloitte, adds:
“Against the backdrop of the General Election here and particular concerns surrounding the potential Grexit, the outperformance of IPOs is significant. IPOs had performed strongly even before the General Election and the result relieved political and market uncertainty, providing a further boost to performance. Overall, we believe that sentiment is positive and the IPO pipeline for the rest of the year and into 2016 is as strong as ever, with consumer and financial services businesses in particular leading the way.”
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, cash shells etc. have been excluded). The performance figures reflect share price movements only, take no account of dividends, and are not a measure of total shareholder return.
Notes to editors
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.