SME advisers expect more London floats

Michael Bow
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CAPITAL hungry UK companies have become increasingly bullish on the scope for initial public offerings (IPO) over the next 12 months, after a poll revealed an uptick in company sentiment on market floats.

Around 54 per cent of advisers working with small companies in the UK believe the IPO market will be much better or slightly better this year, with just 13 per cent of advisers believing it will be worse.

And a majority of directors at small and mid-cap businesses – 40 per cent – share the viewpoint, foreseeing a stronger IPO market over the next year, according to the figures obtained by YouGov in a poll for BDO and the Quoted Companies Alliance.

Is the IPO market looking better or worse now than 12 months ago?  Data suggests that UK companies are becoming increasingly bullish on the scope of IPOs over the next 12 months.

The survey, conducted in April, follows successful flotations earlier this year from Partnership Assurance Group and Crest Nicholson, which have helped London’s IPO market rebound since the depths of the financial crisis.

Equity market bullishness is beginning to feed into broader economic confidence as well, with the poll showing the small and mid-cap sector is optimistic about the economy for the first time since the survey began. The survey recorded a score of 51.4 for advisers and 51.8 for companies, with a score of 50 being neutral on the economy.