According to recent market research, companies appear to be gravitating towards the London stock market – a clear sign of nascent economic growth.
In the last quarter, both the junior AIM (Alternative Investment Market) and main market increased by £601 million. This is a significant increase from the same period last year, which hit £214 million.
Accountancy firm EY (formerly Ernst & Young) indicates that the total amount generated from IPOs so far this year has reached over £3 billion. That is double the figure raised in 2012.
“There are extremely encouraging signs about the next quarter,” explains EY’s David Vaughan. He goes on to say “there is a strong pipeline of good quality businesses preparing to IPO over the next nine months.”
Experts expect to see an increasing number of large private equity-backed businesses making announcements over the next few weeks, including the highly anticipated Royal Mail IPO due next week and more news from recent newsmaker Foxtons.
This recent AIM growth surge is the first in six years, where more IPOs have joined the market rather than delisting. During the last quarter, 20 new stocks arrived on the market with only 16 leaving.