Stock exchange sees a 63% rise in company floatations

THE London Stock Exchange (LSE) saw a 63% surge in company flotations in 2017, helping it come out on top among its European peers and second globally in terms of funds raised.

The LSE says 106 companies launched initial public offerings (IPO) on its markets this year which together raised £15bn.

It represents a 164% rise in the value of IPOs on the LSE compared to 2016, ranking it second in terms of money raised across the globe and first in Europe.

The exchange also surpassed all its European counterparts when it came to the total number of IPOs.

London Stock Exchange chief executive Nikhil Rathi said: “Despite the debates about Brexit, London’s highly global, deep and liquid capital markets continue to be the ideal partner for funding the world’s growth.

“It is particularly significant that the number of international listings in London is up; with North American listings up nearly seven-fold on last year.”

Nine of the top 10 IPOs by size were from firms outside the UK this year, with 20 North American firms choosing London for the site of their flotations.

“We also continue to be at the forefront of innovative global finance, listing more REITS and funds than anywhere else in the world and financing the global shift to a low-carbon economy, with the number of green bonds issued and money raised up by two-thirds on 2016,” Mr Rathi said.

The LSE’s AIM market celebrated 49 IPOs this year, raising £2.1bn and marking a 97% increase in value compared to last year.

When accounting for both initial and follow-on fundraising, companies raised a total of £7.3bn on AIM, up 45%.

The UK is still gunning for some major listings next year, including the much anticipated £1.5tn flotation for oil giant Saudi Aramco.

Prime Minister Theresa May and now former London Stock Exchange Group boss Xavier Rolet met with the company’s boss Khalid Al-Falih in April when they pressed home the advantages of bringing the listing to London, which is facing competition from rival financial centres including New York.