The UK IPO market is at an all time low and came to a virtual stop at the beginning of the year, according to KPMG Corporate Finance.
Only six trading companies - Orange, Caffe Nero, Michael Page, Marlborough Stirling, Aortech and PHS Group - joined the main market in the first six months, compared with 28 in the corresponding period last year.
KPMG said the IPO market remains inactive at the half year mark although approximately £6.8bn was raised in the first half compared with £3.7bn last year.
KPMG Corporate Finance head of new issues Neil Austin said: “We are now half way through the year and the main London market remains dormant. High quality companies with a strong story can find an appetite but usually only at the lower end of their valuation expectations. As long as we see profit warnings, earning downgrades and general economic uncertainty the markets are unlikely to budge.”
The change shows that investors are now generally investing in a few large companies, such as Orange, which raised £3.99bn and constituted 60pc of the total so far this year.
By Jeena Nadarajan
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