Initial public offerings on London’s stock markets raised 90% less in 2022 than a year earlier, according to fresh data.
Just 45 companies listed on the London Stock Exchange and its Alternative Investment Market (AIM) junior market throughout the year, according to data from the exchange, raising billions less than in 2021.
Listings raised £1.6bn in 2022, compared to £16.3bn in 2021, with the final quarter of the year seeing just nine companies float on the stock exchange, likely because of economic uncertainty.
IPOs fundraising reduced 61% globally, according to data from EY, with proceeds of US$179.5bn, as 1,333 companies publicly listed around the world.
The largest London fundraising was for Ming Yang Smart Energy Group Ltd, which raised US$657mln (£546mln) on the international main market in July and was valued at US$9.96bn.
It was one of only six other companies that raised over £100mln, four of which were on the international main market:
- Ithaca Energy PLC £300mln, main market, November (the second largest company to list during the year at £2.4bn)
- New Energy One Acquisition Corporation PLC (LSE:NEOA), £175mln, main market, March
- Financials Acquisition Corp (LSE:FINS), £154.5mln, international main market, April
- Hiro Metaverse Acquisitions ISA, £118mln, international main market, February
- ACG Acquisition Company Ltd, £113mln, international main market, October
On AIM, five companies raised cash in seven-figure amounts, led by Clean Power Hydrogen PLC, which raised £30mln in February.
Sondrel (Holdings) PLC drummed up £20mln in October; Facilities by ADF PLC drew attracted £18.4mln, including £15mln of new money, in January; Strip Tinning Holdings PLC raised £10.75mln, including £8mln of new capital, in February; and i(x) Net Zero PLC achieved a cash haul of £10.7mln in February.
“2022 was a very difficult year for the UK IPO market, with the adverse macroeconomic and geopolitical environment leading to a relative pause in IPO activity towards the end of the year,” said Scott McCubbin, EY UKI IPO leader.
“There remains pent-up demand for IPOs, so we may see an upturn in the market in the second half of the year if we avoid further geopolitical shocks.”
“The outlook for 2023 remains uncertain” though, McCubbin outlined, as high inflation and interest rates, alongside supply chain issues and reduced consumer confidence continue to bite.
Around the world, technology companies were among those enjoying “modest success,” EY added, while the energy sector was also strong in comparison.
Listings by tech and energy sector companies accounted from 23% and 22% of global proceeds respectively in 2022.
IPO activity in London in 2023 started last week with the admission of Streaks Gaming PLC, which raised £3mln as it joined the main market, as confirmed last Monday.