London float market creeps back to health

Michael Bow
Follow Michael
LONDON’S initial public offering (IPO) values have already surpassed 2012’s combined figures despite lagging in the doldrums, figures published yesterday showed.

London stock market floats raised £2.4bn in the first two quarters of this year compared to £1.5bn for the whole 12 months of last year, the statistics from Ernst and Young reveal. London is now third behind the New York Stock Exchange and the NASDAQ as the biggest float market.

The seven main market floats and 16 listing on the junior stock market outstripped the four main market listings achieved last year.

However, this year’s figures still lag previous quarters. The final quarter of 2010 saw 23 initial public offerings on the main market and the second quarter of 2011 saw £7.7bn raised. This year’s rise is tied to more realistic pricing by companies and bankers, better post-IPO performance of shares and a return in investor confidence, the professional services firm said.

On Wednesday the government announced plans to float the Royal Mail on the stock market due to the good valuation prospects for a London IPO.