Brexit depresses value of flotations to four-year low
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New listings on the main market and the Alternative Investment Market (Aim) were valued at £948 million in the third quarter of 2016 – down 42 per cent from £1.6 billion in the same period last year – notes the research by Henderson Managed Investment Trusts.
The number of flotations in the first nine months of this year – 41 – is aso at its lowest level in four years.
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Hide AdColin Hughes of Henderson Opportunities Trust said: “The chilling effect of the Brexit vote noticeably cooled companies’ enthusiasm to list on the stock market, and we have yet to see IPO (initial public offering) activity reheat despite market conditions settling somewhat.”
Among flotations pulled this year were Pure Gym and food distributor Brakes Group.