BDO spots buoyant UK IPO market

Related Content Related Video White Papers Related Articles

Accountant and advisory firm BDO says recent research into the views of institutional investors with over $10trn under management points to a buoyant IPO market in the UK.

Over three-quarters, 76% of the 116 investors surveyed in December said they expect the number of IPOs on London’s Alternative Investment Market (Aim) to increase or remain unchanged. At the same time some 77% said they expect the same for listings on the main market.

Overall, the UK is still seen as an attractive country for equity investments, just behind China, then Germany, Japan and the most favoured destination, which is the US.

Chris Searle, Capital Markets Partner, said: “Despite all the uncertainty, global investors continue to rank the UK as a key place to do business. This positive sentiment is particularly welcome given the number of floats that failed to make it to the market last year.”

Key drivers identified behind the pipeline of IPOs include the lack of bank funding in the UK, which is forcing companies to raise money in other ways.

In terms of the sectors the investors surveyed saw as most attractive for IPOs, they picked technology (51%), consumer goods (36%), financials (33%) and healthcare (30%).

Size is less of a driver of preferences: some three-quarters said that small and mid-cap companies were important for future economic growth in the UK, but just 28% said they saw this type of company as more attractive in the coming 12 months. More, 67%, preferred companies with market cap over £300m as more attractive.

Searle said: “Evidently we are still seeing a gap in attitudes towards investing in smaller versus larger companies. Yet certainly in as far as technology is concerned, the vast majority of UK businesses in the sector are small so it will be interesting to see how investors deal with that. The important issue is that markets such as AIM continue to build on the momentum they have established attracting investors into the UK and building overseas support for UK businesses.”


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

Read more from Jonathan Boyd

Close Window
View the Magazine

I also agree to receive editorial emails from InvestmentEurope
I also agree to receive event communications for InvestmentEurope
I also agree to receive other communications emails from InvestmentEurope
I agree to the terms of service *

You need to fill all required fields!