The North ‘drives IPO revival’
COMPANIES in the North are helping to drive a revival in stock market flotations, according to accountancy group EY.
The North West has already seen the main market listing of Arrow Global in October, and online fashion retailer Boohoo.com plans to float in the New Year. Earlier this year Bargain Booze and Outsourcery floated on the Alternative Investment Market.
EY said the main market suffered its driest spell on record for IPOs (initial public offerings) last year with only four listings raising just over £1bn.
EY North West IPO leader Richard Harding said: “In quarter one 2013, we saw two listings and two re-admissions raising cumulative funds of £1.24bn, which outshone the funds raised for the whole of 2012, sparking renewed vigour.
“The improving economic environment throughout the year has lifted investor confidence and we are beginning to gain some serious momentum. Only a significant macro-economic jolt will prevent the next nine months from being the most active period for IPOs that we have seen since 2007.”
He added: “Northern companies are becoming pioneers in the IPO market revival. Not only have we begun to see the emergence of listings from companies based in the North West this year, but a healthy pipeline of others ready to do the same. We are working on several IPOs with Northern companies that we expect to come to fruition in the next six months. It is testament to the quality of entrepreneurial businesses we have here in the region.”
