Tuesday 9 July 2019 1:01 pm

London listings triple in second quarter after Brexit extension

The number of companies selling shares on the London Stock Exchange (LSE) for the first time bounced back in the second quarter of the year after the extension of the Brexit deadline.

Read more: Trainline on track as it posts big sales boost in first results since IPO

There were 15 initial public offerings (IPOs) on the London exchange in the second quarter of the year, according to accountant EY’s latest IPO tracker, released today. This was triple the number seen in the first three months of the year.

EY said the extension of Britain’s stay inside the European Union “provided an opportunity” for firms to raise money by selling shares for the first time.

A global economic slowdown and the ongoing impact of an unresolved Brexit on companies’ confidence caused a drop in IPOs in the first quarter, EY said in its last tracker report.

Although the total proceeds made from IPOs grew 39 per cent year on year in the second quarter, the total number of listings fell by 37 per cent.

LSE’s main market welcomed 10 IPOs in the second quarter, which raised £3.8bn. Its Aim market for smaller companies saw five listings, raising £194m.

“The second quarter provided an opportunity, created by the extension of the Brexit deadline, for a mix of domestic and overseas issuers to list,” said Scott McCubbin, EY’s UK IPO leader.

He added: “Although we expect investors to remain discerning with continuing local and global political and economic uncertainty, healthy IPO pipelines suggest this uptick will continue into the third quarter of 2019.”

The second largest listing in the April to June period was travel ticket company Trainline. It raised £1.1bn when it listed in June. 

Financial and support services was one of the dominant sectors for London listings in the second, raising a total of £1.96bn according to EY.

June also saw the launch of the London-Shanghai Stock Connect, a pioneering scheme that lets UK and Chinese companies sell shares on each others’ stock markets.

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McCubbin said the scheme “has further enhanced” London’s “international credentials”.

(Image credit: Getty)