London IPO market shows ‘green shoots of recovery’ after barren start to the year
The amount of cash raised on the London Stock Exchange has begun to creep upwards this year as “green shoots of recovery” begin to appear after a barren period on the market, new data shows.
According to new data from Big Four firm EY, the capital’s bourse registered just 18 new floats in the first six months of the year, raising a cumulative £593m, as firms continue to swerve the volatility of public markets fuelled by surging inflation and rapid rate hikes.
The amount of cash raised via IPOs flatlined on the same period last year when £594m was raised from 26 issuers. However, analysts at EY said there were now more positive signs on the horizon after an uptick in interest in the second quarter.
“The last 12 months have been challenging for many businesses however as we start to see the green shoots of recovery, many companies which had delayed their IPO plans are now preparing to list again,” said Grant Humphrey, partner, strategy and transactions at EY.
“With a healthy pipeline of IPOs for the remainder of 2023, we expect listing activity to rebound towards the end of 2023 and early 2024 once inflationary pressures ease, and companies have the stability and predictability required to realise their long-term growth plans.”
The quiet first half in the capital came amid a wider barren patch in the global IPO market, with global proceeds falling 36 per cent year-on-year. Regulator and officials have been looking to overhaul the rules governing listings in the Square Mile to boost the standing of London.