Public markets back in fashion says EY

THE IPO market is returning to the coporate agenda on the back of strong FTSE performance and improved confidence, according to accountants EY.

With cloud computing firm Outsourcery already listed on AIM, IFA network Persepctive Financial on its way to an IPO EY says it has a healthy pipeline of potential floats in this region.

In recent weeks there has been national media speculation over white goods retailer DRL and debt recovery specialist Arrow Global and several other well-known businesses including Bargain Booze, are said to be looking at options too.

So far this year there has been a more active  IPO market nationally than in 2012. During the first half of this year, there were seven main market IPOs – four in Q1 and three in Q2 – compared to three over the same period last year. Total funds raised for the year to date has reached £2.4bn, surpassing last year’s total of £1.5bn, according to EY’s latest IPO Eye.

In the second quarter alone there were 11 AIM deals including the debut of Outsourcery.

Richard Harding, North West IPO leader at EY, said: “London IPO activity is ramping-up, buoyed by a surge in the FTSE100 index and a rosier outlook for the UK economy.
 
“We are seeing a healthy and growing list of North West companies entering our float pipeline, encouraged by the success of recent floats and their post IPO performance.  
 
“The AIM listing of Outsourcery in May, will spur on other North West companies who are rumoured to, or have stated intentions to float.”   

Mr Harding is bullish on AIM’s prospects, despite recent de-listings such as media group Hasgrove: “AIM is still an attractive route for fast growing companies to gain investment.

“The global economic downturn has naturally affected the number of companies on AIM but, as is evident from the influx of US tech start-ups, it is increasingly viewed by the sector as a viable alternative to US exchanges and this trend bodes well for the future.”.