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London IPO market soars in 2017

A total of 106 companies floated on the London Stock Exchange’s markets in 2017, raising GBP15 billion, an increase of 63 per cent by number of IPOs and up 164 per cent by value of IPOs compared to 2016. 

London Stock Exchange has surpassed all European exchanges this year by number of IPOs and money raised, ranking second globally by money raised.

London’s IPOs have become even more international in 2017, with nine of the top ten IPOs by size coming from outside of the UK. Twenty North American companies chose London for their listing, with the UK markets remaining attractive to US fund managers. This underlines London’s status as the world’s most international financial centre and a market open to the world.

London has had a strong year for investment vehicle IPOs, with 35 IPOs on London Stock Exchange, more than anywhere else in the world and 677 per cent more money raised compared to 2016.

AIM, the leading international growth market, also ended 2017 on a high. Some 49 new companies floated on AIM, and raised GBP2.1 billion, a 97 per cent increase by money raised compared to 2016. In total, GBP7.3 billion was raised on AIM in initial and follow-on fundraising this year, an increase of 45 per cent compared to 2016.

London Stock Exchange has also received confirmation from the Financial Conduct Authority of its intention to register AIM as an SME Growth Market, once the status becomes applicable on 3 January 2018. This follows AIM and AIM Italia providing 69 per cent of all finance to growth companies across EU growth markets in 2017, supporting the Capital Markets Union project in its ambition to unlock EU growth and jobs.

Nikhil Rathi (pictured), CEO, London Stock Exchange Plc, says: “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.

“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.”

Marcus Stuttard, Head of AIM, London Stock Exchange Plc, says: “The ongoing success of AIM this year is one of the many signs of its increasing maturity as a market and its ability to fund the real economy. AIM has supported new and existing issuers raise over GBP7 billion in 2017 alone, up 45 per cent compared to 2016, demonstrating its critical role in funding jobs, innovation and growth.

“Approval for AIM as an SME Growth Market is an important step in the ongoing evolution of the market and its ability to further support ambitious businesses to scale and grow. The designation, developed by the EU Commission, as part of its Capital Markets Union plan, aligns with London Stock Exchange Group’s commitment in supporting initiatives which improve access and cut the cost of finance for growing companies.”

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