London IPOs drop to just five in Q3 2023

investmentweek.co.uk:

Of the five IPOs in Q3 2023, two listed on the main market, raising £346.5m in total, while the Alternative Investment Market had three admissions raising £13.3m.

The firm said the drop was largely due to challenging market conditions dampening IPO activity.

Over the quarter, proceeds also fell by 36%, with issuers raising around £359.8m compared with £565.5m in Q3 2022. Between January and September this year, 23 companies listed in the UK raising £953m, down from 34 IPOs raising £1.1bn over the same time period last year.

Of the five IPOs in Q3 2023, two listed on the main market, raising £346.5m in total, while the Alternative Investment Market had three admissions raising £13.3m.

The largest IPO of the quarter was CAB Payments, which raised £291.5m.

FCA eyes simplification of UK listing rules

Scott McCubbin, EY UKI IPO leader, noted the challenging market conditions were also compounded by high inflation and rising interest rates, which have created further hurdles for companies looking to go public.

He said: «However, there are reasons to be positive — several companies which had delayed their IPOs earlier this year are now making plans to be ‘IPO ready' for when headwinds ease. Furthermore, there is an uptick in activity in the US IPO market, which normally has a positive knock-on impact in other markets, so we anticipate a rebound in activity in 2024.»

McCubbin highlighted that London still has the «fundamentals required to be an attractive global destination to list», including a strong financial advisory sector, a well-regulated stock exchange and a liquid investor base.

He added the Financial Conduct Authority's review into simplifying the UK's listings regime «is a welcome step» as it could make London a