2017​ was a stellar year​ for IPOs

Tom Attenborough, Head of International Business Development, London Stock Exchange Group
Tom Attenborough, Head of International Business Development, London Stock Exchange Group
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​​2017 was a successful year for UK and international firms looking to raise public capital and access​ ​growth finance.

And as we settle in to 2018, we feel similarly optimistic in the UK markets’ long term​ ​ability to support UK and international businesses access funding, allowing them to grow, create jobs​ ​and drive economic prosperity for us all.

Despite macro economic uncertainty, 107 companies floated on London Stock Exchange in 2017,​ ​raising £15​bn. A strong rally in the fourth quarter ensured that the number and value of IPOs​ ​more than doubled compared to 2016: up 63 per​ ​cent by number of IPOs and up 164 per​ ​cent by​ ​value of IPOs.

UK Initial Public Offerings (IPOs) activity surpassed all European exchanges by both number of IPOs​ ​and money raised. This is testament to the international confidence in our economy and reinforces​ ​the UK’s status as one of the most international financial centres.

London Stock Exchange is a global​ ​market place and the international listing destination of choice for equities, fixed income and funds;​ whether ​to raise capital or to enable investors worldwide more efficient access to trade these​ ​securities.

Significantly, IPOs have become more international in 2017, with nine out of the top ten IPOs by size​ ​coming from outside of the UK. In fact, 20 North American companies chose London for their listing,​ ​highlighting the ability for companies to raise global capital in London.

Meanwhile, London Stock Exchange’s global market for high-growth companies, AIM, also ended the​ ​year on a high. 49 new companies floated on AIM raising £2.1​bn, an astonishing 97 per​ ​cent​ ​increase by money raised compared to 2016.

AIM has become a fundamental pillar of the UK’s and international financial ecosystem. Over £100bn has been raised in IPO and follow-on capital by companies on the market globally.

AIM boasts​ ​companies from more than 90 countries and 40 different sectors. And a number of Yorkshire-based​ ​companies have chosen to float on AIM to fund their growth. In December 2017, Sheffield-​​headquartered games developer, Sumo Digital, raised £145​m on AIM.

The most recent data​ ​shows that UK incorporated AIM companies alone provide a direct £15​bn annual contribution to​ ​GDP and are responsible for over 430,000 jobs.

London Stock Exchange continues to focus on investing for growth and work on delivering​ ​innovation. For example, Real Estate Investment Trusts (REITs) surged in 2017. The number of​ ​London listed REITs and funds surpassed activity across all global exchanges and raised triple the​ ​value of money raised compared to 2016.

This innovative structure also provides a positive​ ​contribution to the real economy. What’s more, three of the top five UK IPOs fell into the REITs​ ​category in 2017.

So what do we expect for 2018? We continue building on 2017 global success and we remain firmly​ ​committed to promoting a financial ecosystem that helps businesses raise capital and growth​ ​worldwide.

The UK IPO pipeline looks healthy and we expect to see UK and international companies​ ​continuing to turn to our markets to fund their expansion.

The UK financial ecosystem continues to thrive, open and ready for business. Its unique qualities: a​ ​globally trusted regulatory and legal framework, the most internationally diverse, deep and liquid​ ​pool of capital, and a proven ability to constantly be at the forefront of financial innovation make​ ​London and the UK the ideal home for companies and investors.