London stock market flotations outpace FTSE 100 performance

Michael Bow
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NEWLY listed companies have performed marginally better than the FTSE 100 benchmark so far this year, according to a half-year roundup of initial public offerings (IPO).

The 16 floats this year (see right) have returned 17.8 per cent on average, according to Deloitte, 18.4 percentage points ahead of the FTSE 100.

It means £1,000 invested in each float would be worth £18,855 compared to £15,915 if you had invested the money in a FTSE 100 tracker fund.

“In a half year that has seen the FTSE reach all-time highs in April and a big weekly fall in early June, it is encouraging that the cohort of 2015 IPOs have performed so strongly,” Deloitte’s head of equity capital markets John Hammond said.

“As we have seen for the last few years now it is largely UK PE-backed businesses that are successfully listing in London, indicating that IPO valuations remain attractive both to PE shareholders and investing institutions.”

Just two listings this year have failed to outperform the FTSE 100 – ScS Group and HSS Hire – with the other 14 surging ahead. Aldermore has performed the best out of all floats this year.