IPO market shows few signs of life

IPO activity in the UK continues to falter in 2012, as UK markets raised the lowest amount of funds (£206m) since 2009.

Seven flotations were carried out during the quarter, compared with just four in the first quarter of 2011. However, the amount of funds raised represented a 79% drop on the £966m in Q1 2011.

Richard Harding, North region IPO leader at Ernst & Young in Manchester, said: ”2012 opened with gloomy market sentiment and uncertainty. Concern over the European debt crisis is still causing volatility in the market.

“In the North West there has been just one float in the last 12 months, Inspired Energy on the AIM market in November 2011. There is still appetite to list amongst North West businesses, but confidence in the markets is low.

“Many companies have delayed plans in order to focus on rebuilding their equity growth story, or have sought alternative signs of financing. Until we see more encouraging economic signs, IPO activity will remain flat.”