Article.

Q3 IPO Activity demonstrates continued confidence in London

01/11/2017

At a glance

The third quarter of 2017 continued to see London’s AIM and Main Markets maintain their position as the most active across Europe. According to a recent PWC report, London hosted 36% of all European floats during the period, accounting for 33 % of all proceeds raised.

Despite, missing out on Europe’s largest float of the quarter, energy company Landis & Gyr Holding’s €2.1bn raise on the SIX Swiss Exchange, in Q3, London’s AIM and Main Markets still hosted 16 IPOs, raising just over $1.7bn – their most active quarter since 2011.

The future of the AIM and Main Market is looking rosy

The latest predictions from E&Y paint a positive picture. Global IPO activity for 2017 is on course to be the busiest since 2007, with up to 1,700 IPOs predicted by the end of this year. This is also good news for London, where the pipeline is looking strong, especially for AIM and smaller Main Market listings, and cross-border IPOs, drawn to the depth and liquidity London offers companies.

This strong performance and pipeline for the London markets may well be to do with the UK continuing with “business as usual” despite the uncertainty over Brexit. But, there are also other triggers for this growth, such as the change in regulations allowing Main Market companies to raise secondary funds equal to up to 20% of their issued share capital without having to prepare a prospectus.

Memery Crystal has a wealth of experience advising on both the Main Market and AIM. Read our recent guide to listing on London’s Main Market or for more information please contact Kieran Stone.

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