After a “slow and steady” start to 2017, experts are anticipating London’s flotation market to accelerate towards the end of the year.
City A.M. has named six big companies, worth up to around £30bn, which are currently considering IPOs in London.
The biggest would be Logicor, the £11bn-valued warehouse company of US private equity giant Blackstone.
There were 17 initial public offerings (IPOs) in London in the first quarter, raising £1.2bn, according to analysis by accountancy firm EY.
Compared with the first three months of 2016, there have been three more floats this year, but 25 per cent less capital has been raised.
EY’s IPO Eye report said this was largely due to the fact that few big businesses, outside of investment funds, have been seeking listings.
The report suggested many businesses have been “waiting on the sidelines for more clarity around the triggering of Article 50 and political personnel changes in the US”.
“Volatility in currency and political uncertainty continue to hold back activity within the IPO market, in particular on main market listings outside of the investment industry,” said EY’s IPO leader Scott McCubbin.
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Now that the UK government has triggered Article 50 we are expecting a number of companies to list within the two year negotiating period to take advantage of the European passporting regulations, as well as the greater access to European investors that they offer.
As a result, we expect to see a larger number of IPOs taking place in the last quarter of 2017 and early 2018.
IPO Eye tracked 12 main market flotations, which raised £1.1bn, in the first quarter. Financial services, funds and investment vehicles dominated the listings, with nine out of 12.
Elsewhere, there were five listings on the Alternative Investment Market (Aim) raising £99m.