London IPOs on the up despite Brexit uncertainty

According to research from professional services firm Ernst & Young, there have been 16 deals on the main market in London in 2017 so far, a 45% increase in comparison with the same point in 2016.

A total of £4.6bn has been raised from the flotations during the first two quarters of the year, a significant 141% increase on the funds raised in the first half of last year.

EY believe that IPO levels have likely hit their peak for 2017 however, saying they are ‘likely to remain depressed’ until the first quarter of 2018.

AIM flotations are also higher than last year’s level, with 17 flotations being finalised in the first six months of the year, a 23% increase.

Scott McCubbin, Ernst & Young’s IPO Leader for the UK and Ireland, said the statistics show increasing investor confidence.

McCubbin said: “In the second quarter, we started to see increased investor confidence and a rise in the volume of IPOs, largely driven by expectations that the UK general election in June would enhance political stability and confirm the country’s Brexit strategy.”

“Unless a majority government can be formed that can deliver clarity over the proposed EU exit strategy, continued political uncertainty is likely to dampen the appetite for larger deals, with the focus remaining on small to mid-cap listings.”