Friday 02 July 2021 12:24 pm

London IPOs record best start in seven years

Just four companies left the junior market due to financial distress over the last year

Floatations and fundraisings in the City recorded their best start in seven years, according to figures published today.

Total equity raised in London topped £27bn in the first six months of this year, driven by strong investor appetite for high-profile listings such as software firm Darktrace.

49 IPOs raised over £9bn in the first six months of 2021, the highest volume of floatations since the first sixth months of 2017 and the most amount raised in initial offerings since the first half of 2014.

Julia Hoggett, CEO of London Stock Exchange plc, says: “London’s primary capital markets have had a strong start to 2021.”

“The figures illustrate that we continue to offer the most efficient access to global capital for companies from the UK and around the world. As issuer and investor needs continue to evolve, we will remain focused on ensuring our markets innovate to meet those requirements.”

“This success illustrates the importance of public market financing to underpin growth, innovation and job creation, along with supporting the transition to a low carbon economy.”

Representation of UK companies among London IPOs so far this year has been robust, with notable market debuts coming from Thursoe-based battery producer AMTE Power, Manchester’s In The Style and Stockport’s-based musicMagpie.

A string of owner-founder businesses chose the City to take their firms public, including Darktrace, highlighting London’s pull for the UK’s best and brighest entrepreneurs.

Charlie Walker, head of equity & fixed income primary markets at LSEG, says: “The start of 2021 has seen record activity cementing London as the most active exchange outside of the US and Greater China. Companies raised more equity capital in London than on the next two largest European exchanges combined.”

“We are particularly pleased by the diversity of companies and the strong representation from firms across the UK, as well as globally. Over half of all IPO capital raised has been by technology and consumer internet companies using public markets to support the next stage of their growth.”

London appealed to several international companies, with the City welcoming issuers from the US, Canada, Israel, Russia, Australia and across the EU.

Sustainability bonds reach milestone

The number of active sustainability bonds on offer reached 300 for the first time, with $100bn in debt capital raised.

The fixed income market was robust, raising a total of $262bn by more than 400 bond issuances in the first six months of 2021.

40 per cent of debt capital raised on the sustainability bond market was from UK companies, rising from 31 per cent in the same period last year.

Over half of London exchange traded fund listings were ESG-linked funds. 41 ESG ETFs listed in the first six months of 2021, up from 25 in the first half of 2020.