Ernst & Young’s UK IPO leader Scott McCubbin has said that there is likely to be no IPO activity in the next year, following the UK’s vote to leave to EU.
“IPO activity can be expected to largely cease in the next 12 months,” warned McCubbin.
“Increased uncertainty about the impact that the vote to Leave the EU will have on listing legislation, as well as the expected devaluation of the pound, is likely to hold activity back.”
However he said that there could be one area of increased activity. US and EU private equity funds looking to acquire assets in the UK could be energised by the news, particularly if there is an impact on business valuations and a lower pound, reckons McCubbin.
“Markets will be looking for signs of clear long term plans before confidence returns and activity picks up,” he added.