Increase in IPOs in 2014

The global financial crisis of the last seven years has led to financial unrest across the world. Recessions, bank bailouts and a lack of liquidity in the markets led to the decline of initial public offerings and a lack of trust in most, if not all, financial institutions.

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The recovery from recession in the UK and extra measures taken to ensure more stringent corporate governance, resulting in the Corporate Governance Code updates in 2012, has slowly led to increased trust in investment options and the IPO market is starting to once again grow.

IPOs this year alone include names such as Pets at Home, Poundland and Boohoo.com, following last October’s high profile listing of Royal Mail.

New legislative changes around the Strategic Report and the Companies Act 2006 have also allowed for more information to be available to investors in order for them to make more informed decisions, which not only helps to increase trust but also addresses some of the issues identified in Professor John Kay’s review of short-termism in the market.

With all the legislative changes that have occurred over the past few years and the increase in the number of IPOs on the London Stock Exchange, there has been a 91% recorded jump in the amount of capital raised.

Moving forward it is a time to closely watch the effect of this on the market and what the future holds.