The IPO market awakens

Marking the release of our new guide to IPO for entrepreneurs and business leaders, Stuart Andrews, Managing Director at finnCap explains why the public markets offer fresh opportunities for the right companies in 2020.

“2019 was a year of political turmoil in the UK. There was continued debate over when and if the UK would leave the EU, a change of Prime Minister, a minority government, the Supreme Court overruling prorogation and finally a general election. Most agree that, whatever your political views, this environment was not helpful to investment decisions for either management teams or fund managers. Not only was decision-making difficult, but as capital continued to be withdrawn from UK equity-focused funds, the UK domestic equity market substantially underperformed its global peers. All of this led to a dearth of public market fundraisings and a terrible year for IPOs. On AIM, only 9 commercial companies floated, raising £387m.

“At the start of 2020, however, the environment somewhat changed. With a clear majority resulting from the general election, we are now beginning to see inflows into the UK capital markets and confidence returning to management teams. This makes it an ideal time to think again about how the public markets can help fuel growth for a business and what a public listing might do for a business’s prospects.

“At finnCap, we are experts in growth capital. We would be delighted to discuss whether a flotation is suitable for your business and if it is, where to start. Have a read of our new IPO Guide to see if going public is the right move for your business.”

Download and read our IPO Guide here