UK:
IPO Investments Deliver 5.5% Higher Return Than The FTSE 100, Ahead Of A Bumper H2
12 September 2014
Deloitte
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The 28 IPOs listed so far this year outperformed the FTSE 100 by
5.5%, according to research by Deloitte. Indeed, since the listing
of Saga on the main market in May, 13 of the subsequent 15 IPOs did
better than the FTSE 100 Index.
John Hammond, head of equity capital markets at Deloitte, said:
"Some of the frothy pricing of the first quarter dissipated in
the second quarter and, as a result, nearly all the IPOs that
completed in the weeks before the summer holidays outperformed the
market.
"Overall, to the end of August 2014, the 28 IPOs achieved
an average return of 7.0%, far outstripping the 1.5% return on the
FTSE 100.
"This points to a busy autumn for new IPO activity after
only two new listings in July, and none in August. From our own
pipeline, we anticipate a significant number of new listings,
heralding a return to pre-summer levels. We are particularly
watching the financial services and TMT sectors."
Note: IPOs as referred to above are defined as London Main
Market Listings of shares for trading companies (i.e. investment
companies, venture capital trusts, transfers from other markets and
cash shells have been excluded).
IPO Barometer - Year to 29 August 2014
(below)
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