Three new listings on the London Stock Exchange in the first quarter of 2024 represents an improvement on the prior quarter and last year, with reports in the City of pent-up demand that could lead to a more notable recovery later this year.
The three new arrivals were Microsalt PLC, Air Astana (LSE:AIRA) and Fuel Ventures VCT, while Sorted Group Holdings PLC (AIM:SORT) joined via a reverse takeover.
Air Astana (LSE:AIRA) was the largest, raising £277.5 million, while Microsalt and Sorted raised £3.2 million each.
The second quarter has already seen two listings, with European Green Transition PLC (AIM:EGT) and HeLIX Exploration PLC (AIM:HEX) joining in the first couple of weeks.
The proceeds from the Air Astana (LSE:AIRA) IPO mean the quarter represented a major increase on the £82 million raised from five listings in the same quarter last year, while any activity at all was a blessed relief to all in the Square Mile after the final quarter of 2023 saw no listings on the main market or AIM.
According to analysis by EY, global IPO volumes fell 7% in the first quarter of 2024, but proceeds were up 7% on last year.
In total, 287 IPOs around the world raised US$23.7 billion.
EY’s UK IPO chief Scott McCubbin said there was “pent-up demand for IPOs” in London and “we are likely to see an upturn in the market in the second half of the year as macroeconomic challenges continue to ease”.
However, the US and UK elections this year “will create an unprecedented level of regulatory and policy uncertainty which could influence industrial strategies, trade, climate/ESG and security policies, as well as impacting the economic and investment environment”.