UK IPO Market: Outlook for 2016

2015 has been an interesting year for IPOs. The primary concern at the start of the year was the uncertainty around the result of the General Election on 8 May and the consequent sentiment that it was important for companies to seek an IPO before then.

Out of the 85 companies that have floated to date this year, 40 came to either the Main Market or AIM before the result of the General Election was known. Around £4.8 billion of new money was raised with high profile flotations including DFS Furniture, Aldermore Group, Auto Trader, Wizz Air and HSS.

Post the surprise overall Tory majority there have been 45 flotations with around £4.6 billion new money raised. Of these post-election IPOs Worldpay stands out, having raised £947m, with Equiniti raising the second highest amount of £315m.

So how does Q1 2016 look for the IPO market? The turbulence experienced this autumn both in the financial markets and geo politically has seen a number of possible IPOs delayed until 2016. The key question is if and when these might now happen. At Hudson Sandler we are seeing a pipeline of potential IPOs as strong as the same period a year ago but with a longer lead time to IPO.

Although this might seem to be a negative, it allows us more time to thoughtfully prepare a client for an IPO with a focused and clear strategy of building City and media support.

In particular, we value the time to help clients develop their digital capability of which their website is only one, albeit important, component of their broader reputation management focus.

Written by
Nick Lyon, Director