Tech firms lead resurgence in flotations
A high number of stock market listings by technology firms led a resurgence of large flotations in the second quarter of the year, according to figures out today.
EY tracked 17 initial public offerings (IPOS) in the quarter, one more than in the first quarter and six more than in the same period in 2017.
The six main market listings raised a combined £1.4 billion and 11 flotations on the Alternative Investment Market raised £697 million. The technology sector accounted for five of the 17 listings.
Mike Timmins, EY’S IPO leader in Scotland, said: “The London IPO market is becoming more active and diverse with a strong increase in the market capitalisation of the companies listing. The emergence of several technology and gaming IPOS this quarter also demonstrates that the UK can be a leading destination outside of the US for tech IPOS, which is encouraging news for the growing presence in these industries in Scotland, particularly in Edinburgh and Dundee.
“Additionally, recent examples of listings of technology companies with activity in the North Sea is positive news for the oil and gas sector.”
Timmins also said he expectedtoseeasignificantvolumeof activity in the third and fourth quarters of 2018 as companies rush to take advantage of regulatory stability ahead of Brexit. But activity levels in early 2019 are expected to be more subdued due to uncertainty over the UK’S Brexit deal.
Globally, IPO activity in the first half of 2018 is down 21 per cent on the same period in 2017.