Member Article

Northern IPO market has combined value of £3.33 billion

According to EY’s IPO EYE, the North recorded 15 flotations with a combined value of £3.33 billion this year.

B&M Bargains’ £1.08 billion IPO was the second largest on the Main Market by value raised and the largest by market capitalisation on admission (£2.70 billion), while Boohoo.com’s £300 million listing raised the most funds and had the biggest market capitalisation on AIM.

The listings of companies based in the North of England made up a quarter of the total value of funds raised on the London public markets in 2014, with the region chalking up the largest IPOs on both AIM and the Main Market by market capitalisation on admission.

Despite a stellar start to 2014, there were only three North West IPOs in the second half of the year, DJI Holdings, C4X Discovery and ENTU which all joined the junior market AIM.

Transaction Support Partner and IPO Leader at EY in the North West, Richard Harding, said: “The stabilising economy and an inflow of cash rich institutional investors opened the IPO market at the back end of 2013 and helped it to what has been an outstanding 2014 overall.

“This was buoyed by private equity firms rediscovering the IPO market as lucrative exit route for assets they had been holding on to throughout the downturn.

“Companies with market differentiation, robust profitability, strong management and good expansion prospects have led the way for the region and the market as a whole, while innovative technology and pharma companies have listed and performed well on AIM.

“For many, 2014 will be remembered as the year when a host of outstanding Northern businesses helped to lead the revival of the London markets.

“However, it will also be remembered as a year of two halves, with the public markets cooling down significantly from September.”

This was posted in Bdaily's Members' News section by Sophia Taha .