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Listing activity on the London stock market saw an improvement in the first quarter of 2024 with three IPOs raising £283.8m, EY UK&I has reported.
The proceeds raised in Q1 2024 represent a 250% year-on-year increase on the £81m raised from five listings in the same quarter in 2023, and a 100% increase on Q4 2023 when there were no listings on the main market or AIM.
Kazakhstani airline, Air Astana, was the largest listing on the main market, raising £277.5m, whilst Fuel Ventures VCT plc also listed on the main market, raising £3.2m. Low-sodium salt producer MicroSalt plc also raised a £3.2m listing on AIM.
Scott McCubbin, EY UK&I IPO leader, said: “After a challenging 18 months for the equity markets, it’s encouraging to see activity return to the London stock market, albeit at much lower levels than normal.
“Pent-up demand for IPOs means we are likely to see an upturn in the market in the second half of the year as macroeconomic challenges continue to ease. That said, the US and UK elections later this year will create an unprecedented level of regulatory and policy uncertainty which could influence industrial strategies, trade, climate/ESG and security policies, as well as impacting the economic and investment environment.”
He added: “Businesses looking to IPO will need to closely monitor election outcomes and how they affect stakeholder interests which may mean re-evaluating IPO timing to avoid facing further economic and geopolitical headwinds.”
According to EY’s findings, the Americas and EMEA IPO markets recovered in Q1 but Asia-Pacific experienced a weak start to 2024.
While global IPO volumes fell 7% in Q1 2024, proceeds were up 7% year-on-year. In total, 287 IPOs raised $23.7b (£18.9bn) in Q1 2024.
Debbie O’Hanlon, EY UK&I private leader, added: “The global IPO market has shown signs of a recovery with an uptick in enthusiasm from both IPO issuers and investors; however, businesses looking to IPO will be entering uncharted territory.
“An evolving landscape influenced by changes in interest rates, intricate geopolitical dynamics, and a shift in investor focus towards profitability means companies eyeing IPOs must adjust to this new reality and reconsider their strategies and timing accordingly.”
