The London Stock Exchange experienced a slow start to 2022, with 19 issuers raising £397m in the first quarter of 2022.
The main market saw 12 IPOs which raised £308m whilst the Alternative Investment Market (AIM) saw seven admissions in the first quarter of 2022, raising £89m. The largest main market IPO in Q1 was New Energy One Acquisition Corp Plc which raised £175m and the largest AIM admission was Clean Power Hydrogen plc which raised £30m.
Listing activity during the first three months of 2022 is in stark contrast to the same period in 2021 when there were 12 IPOs on the main market and two on AIM, which raised a combined total of £5.6bn – a value 14 times higher than this year’s opening quarter.
Scott McCubbin, EY UKI IPO Leader, comments: “The London IPO market has experienced a difficult start to 2022. There are strong headwinds as a result of the war in Ukraine, high energy and commodity prices alongside inflationary pressures and associated interest rates rises which are ultimately creating uncertainty for the future cash flows of businesses looking to float. These pressures combined with supply chain issues are likely to lead to a continuation of the weaker market in Q2 2022. We will hopefully see a return to a stronger equity market later in the year, although this remains at risk given the uncertain geopolitical and macroeconomic landscape.”