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IPO activity revives as market adapts to Covid

Tommy Cook of Calnex led the first Scottish IPO for two years

Stock market flotations have resumed following the moribund second quarter as both the Main Market and AIM have adapted to operating in a predominantly virtual environment.

The Main Market has witnessed its largest initial public offering [IPO] for three years – the e-commerce Hut Group raising £1.88bn – which was also the largest ever technology IPO by market capitalisation.

The London Shanghai Stock Connect program had its second listing of the year with China Yangtze Power Co raising £1.4bn.

AIM has also had a good start to its 26th year of operation with three admissions in the quarter raising a combined total of £76m. We can already see this continue into Q4 as Calnex Solutions commenced trading on AIM this week, Scotland’s first IPO for two years.

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Despite transaction numbers remaining low, London has maintained its position behind the US and China for funds raised both in the quarter and in the year to date, according to preliminary global data. 

In addition, and in a continuation of market activity pre-summer, more than £5bn has been raised in more than 125 follow-on transactions this quarter and while this is lower than the flurry of activity pre-summer further fund-raising is expected.

Mike Timmins, EY’s IPO leader in Scotland, said the successful adoption of virtual IPO marketing in place of the traditional face-to-face meetings may evolve into more of a hybrid model.



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