London IPO market soars in 2017

  • 106 IPOs raise £15bn in London – three year high
  • +63% by number of IPOs, +164% by value of IPOs year-on-year, surpassing all European exchanges
  • London’s IPOs become even more international – nine out of largest ten by value are international; 20 listings come from North America
  • Money raised on AIM +97%, via IPOs, year-on-year. AIM to be registered as SME Growth Market

London Stock Exchange today announces that 106 companies have floated on its markets in 2017, raising £15 billion, up 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. 20 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. 49 new companies floated on AIM, and raised £2.1 billion, a 97 per cent increase by money raised compared to 2016. In total, £7.3 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, CEO, London Stock Exchange Plc:

“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:

“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 £7 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.”

London Stock Exchange – 2017 Key statistics

Main Market & AIM

2017

2016

%

Number of IPOs

106

65

63%

Money raised at IPO

£15bn

£5.7bn

164%

IPO & follow-on capital

£40.9bn

£30.2bn

36%

New company average performance

12.2%

18.5%

-34%

Number of North American Listings

20

3

567%

Number of Investment Vehicles IPOs

35

8

338%

Investment Vehicle IPOs money raised

£5bn

£644m

677%

AIM

2017

2016

%

Number of IPOs

49

38

29%

Money raised at IPO

£2.1bn

£1.1bn

97%

Average market cap at IPO

£78m

£72m

9%

Average money raised at IPO

£43m

£28m

52%

IPO & follow-on capital

£7.3bn

£5bn

45%

New AIM company average performance

10.7%

31%

-65%

The success of London Stock Exchange’s IPO market in 2017 is replicated across London Stock Exchange Group’s (LSEG) broader capital markets division. LSEG delivers world class capital formation for equity, fixed income and funds, reflecting the multi-asset needs of its customers.

  • Borsa Italiana welcomed the biggest continental European IPO in 2017 - Pirelli raised €2.4 billion in October  2017
  • In April 2017, logistics company Eddie Stobart raised £393 million on AIM, the largest AIM IPO since 2005
  • London Stock Exchange continued to welcome a number of first global bond issuances in 2017, including the world’s first Komodo bond; the first green bond from the Gulf region and the first UK bank green bond
  • In May 2017, London Stock Exchange launched its new International Securities Market (ISM), an additional market for the issuance of primary debt targeted at institutional and professional investors; there are 11 bonds on ISM
  • 177 new ETPs (more than last year) and welcomed five new ETP providers to our London market: GF International, Fidelity, Franklin Templeton, JP Morgan and Global X. (Record number of new issuers for the last few years.)
  • 133 ETFs and 44 ETCs/ETNs listed on London Stock Exchange in 2017
  • Three Companies to Inspire reports, “1000 Companies to Inspire Britain,” “1000 Companies to Inspire Europe” and “Companies to Inspire Africa”  were launched in 2017, showcasing some of the fastest growing companies across these regions and LSEG’s commitment to funding growth and innovation.
  • LSEG’s business support and capital raising programme, ELITE, has continued to expand globally, with partnerships secured in Brazil, China, Ivory Coast and Turkey in 2017. Today there over 700 ELITE companies from across 27 countries.

 

- Ends -