77 IPOs listing in London raised £13bn in 2017 – up from the 66 IPOs in 2016 that raised £5.5bn
A strong rally in quarter four (Q4) of 2017 ensured that the value of London IPOs more than doubled when compared to 2016, according to EY’s latest IPO Eye report.
2017 saw a total of 77 IPOs listing in London – 32 on the Main Market and 45 on AIM – raising £13bn. This compares with 63 IPOs listing in 2016 raising £5.5bn – 26 on the Main Market and 37 on AIM.
Q4 2017 alone accounted for £5.1bn in proceeds raised by 30 IPOs – 14 IPOs on the Main Market and 16 IPOs on AIM. It represents a significant increase from Q4 2016, which saw 16 IPOs (nine on AIM and seven on the Main Market) raising £2.4bn – half the overall capital raised in 2016.
EN+ Group, a Russian energy company which listed in Q4 2017, was the largest IPO to list last year, raising £1.1bn of capital.
Against a backdrop of record highs on the FTSE, the post-IPO performance of those listing has been steady. First-day returns on Main Market stock were on average just 1.1 per cent above offer price, and eight out of 29 stocks (that started trading by 1 December) are currently trading below their offer price.
By sector, real estate led the way in 2017, with a 15 per cent share of UK IPOs, ahead of industrials (13 per cent), financials (11 per cent) and materials (11 per cent). However, financials was the leading sector by proceeds, accounting for 32 per cent of funds raised, ahead of energy (18 per cent) and real estate (17 per cent).