Listing boost

LSE regains IPO crown in bumper year

Scotch Malt Whisky Society
Artisanal Spirits Company floated in June

London has raised more equity capital for newly listing businesses this year than at any time since 2007, according to new figures that will underpin the City’s post-Brexit status as a financial centre.

There were 122 listings on the main market in 2021, raising £16.8 billion, significantly up from £9.4 billion in 43 initial public offerings in 2020, the London Stock Exchange Group said.

This made London the biggest single source of capital outside the US and China, raising more equity capital than the Amsterdam and Paris exchanges combined, LSEG said.

Including capital raised via rights issues and placings, the total raised in London this year is £49.2 billion.

Through the year 39% of all IPO capital has been raised by tech or consumer internet companies, with a combined market capitalisation of £31bn at IPO.  This has included Oxford Nanopore and Wise, the largest technology company to list on the exchange.

Companies from across the UK also accessed London’s public markets in 2021, including Scotland-based Artisanal Spirits Company and Parsley Box.

It has also been the biggest year for capital raising since 2007 for London’s junior market, AIM, with £9bn raised in IPO and follow-on capital. In total, 64 companies were admitted in 2021, raising more than £3bn, the most active year for AIM IPOs since the 75 admissions in 2014.

Three of the top 10 largest IPOs on AIM (by amount raised) were admitted in 2021 – Life Science REIT (6th at £350m), Revolution Beaty Group (8th at £300m) and Victorian Plumbing Group (9th at £298m).

Julia Hoggett, CEO of the LSE said: “2021 has demonstrated the strength of the UK capital markets with our most active year since 2007. It has also highlighted the vital role LSEG’s capital markets play in supporting innovation, growth and the transition to a low-carbon economy.”

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