The Main Market at London’s Stock Exchange saw eight Initial Public Offerings (IPO) raising £780 million in the third quarter, according to a new report.
The latest EY IPO Eye shows a decline in volume and value in the third quarter by 47% and 71% respectively, with five flotations on the AIM raising £257m in total.
This compares with the last quarter of the year which had a total of 17 IPOs (Main Market – six, AIM – 11) and the same quarter last year, Q3 2017, which had 30 listings (Main Market – 14, AIM – 16).
According to the Eye, the low deal volume and proceeds largely reflect the lack of investor appetite for IPOs in a volatile and uncertain market combined with the continued low value of the British pound.
Financial services was the most active sector by deal number, claiming six of the 13 IPOs on UK exchanges in Q3 this year and raising £743m.
London’s Main Market and AIM exchanges secured the 10th spot among the top 10 stock exchanges globally by volume and by proceeds.
EY Scotland’s IPO leader Mike Timmins said: “Brexit uncertainty continues to cast a shadow over the London market, making it hard to predict how IPO activity will unfold over the next few months.
“IPO candidates are keeping an open mind when it comes to exit strategies, which can lead to lower IPO volumes in 2018.”
