Quietest year in a decade for IPOs as listings tumble 56 per cent

2019 WAS the quietest year for IPOs in a decade, with the number of listings falling by 56 per cent year-on-year, according to EY’s latest IPO tracker.

Last year, 35 IPOs listed – 24 on the main market and 11 on AIM – raising £5.9bn, compared with 79 listings in 2018 – 44 on the main market and 35 on AIM – raising £9.5bn. EY said the reduction in AIM admissions was particularly prominent and continues a downward trend, which began in 2018.

In terms of funds raised, the largest IPOs in 2019 were Network International (£1.2bn) and Trainline.com (£1.1bn), both previously backed by private equity.

Scott McCubbin, EY’s UK IPO leader, said: “Amidst unprecedented geopolitical uncertainty, 2019 was a challenging year for the global public markets, and London was not alone in experiencing a downturn in activity.

“That said, we did see some high-profile listings in the UK last year raising significant funds, with the majority performing well post IPO.”

In the last quarter of 2019, eight IPOs listed in the UK, raising £1.1bn, accounting for less than a fifth of the total proceeds raised in the entire year. In contrast, in the same period the previous year (Q4 2018) 25 IPOs came to market, raising £4.4bn.

Mr McCubbin said: “Although we saw a slight pick-up in IPO activity in the last quarter of the year, 2019 will be noted as a decade low point for UK listings.

“However, whilst overall IPO numbers fell last year compared to 2018, post listing performance improved, with almost 80 per cent of 2019 IPOs trading-up compared to the listing price at the year-end.”

2019 saw the largest global IPO with Saudi Aramco raising $25.6bn, but overall global IPO activity in the year was down.

Globally, 1,127 IPOs registered last year, a 19 per cent fall in deal volume and a 2 per cent decrease in proceeds compared with 2018.

Mr McCubbin said: “With the election now behind us, and some more certainty around the UK’s position on Brexit, we can expect more buoyant IPO markets in 2020.

“However, markets are expected to become more volatile leading up to the US Presidential elections in the second half of 2020.”