Equity fundraising on the London markets up nearly 50% on the year in Q1 2017 has been saved
Equity fundraising on the London markets up nearly 50% on the year in Q1 2017
2 May 2017
Overall equity fundraising on the London Stock Exchange (Main Market and AIM) was up 49% from £5.0 billion in the first quarter of 2016 to £7.4 billion in the first quarter of this year, according to analysis from Deloitte. However, there were only three Main Market Premium IPO listings in the first quarter of this year, compared to five in the same period of 2016.
Chris Nicholls, head of IPO and Equity Advisory at Deloitte, comments:
“Fundraisings made a stronger start to the year primarily driven by increased secondary issuance – comprising of listed companies raising new money and major shareholders selling down their stakes. However, new IPO listing activity was subdued, with investors and management both wary in the current uncertain climate.
“Nevertheless, UK investors are still supportive of issuers that have attractive growth prospects, proven strong cash generation and which can offer a compelling valuation. The IPO pipeline appears healthy for the remainder of 2017, but this could be tested by geopolitical events or further uncertainty in the markets.”
As at 31 March 2017, there had been seven Premium IPOs of trading companies since the Brexit referendum, raising a total of £2.4 billion with an average price increase of 23.5%.
Notes to editors
IPOs as referred to above are defined as London Main Market Premium listings of shares for trading companies (i.e. investment companies, venture capital trusts, transfers from other markets, cash shells etc. have been excluded, as have AIM and Standard listings, except where otherwise stated). IPOs and secondary offerings raising less than £25 million have been excluded, as have the issuance of GDRs and convertibles and the take-up of any over-allotment options. The performance figures reflect share price movements only, take no account of dividends, and are not a measure of total shareholder return. Market data is as at close of business on 31 March 2017.
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.