Inflation, rising interest rates and international instability have undoubtedly created obstacles for the success of equity markets in the first half of 2023. The mood has certainly been downtrodden over the last year and yet, despite this, the London Stock Exchange ("LSE") has remained one of the most active markets in the world, with more capital raised and more deals than any other market in Europe. With these challenges, global equity transactions volumes have decreased by 49% compared to 2022. By comparison, the UK has only seen a 24% decrease.
Keen to remain a strong market the LSE is making changes to improve efficiencies and make its process "slicker, smoother, cheaper and more transparent". The LSE is also seeking to become the first large global stock exchange to offer an “end to end” blockchain-powered ecosystem to investors.
Some of the LSE's 2023 highlights so far include:
- In total, £11 billion was raised by companies on the London Stock Exchange in H1 2023, of which £593 million was from 18 IPOs, with the capital markets team at Howard Kennedy advising the issuer on two of these.
- £10 billion of capital was raised by listed companies returning to the market, with 161 follow-on deals.
- Announcing that it plans to build a new Intermittent Trading Venue – the first of it's kind in the world – intended to bridge the gap between private and public markets by allowing private companies and funds to periodically access liquidity for its shareholders while remaining private.
- The LSE ended September on a high note as data showed the British economy has beat expectations on its post-pandemic performance.
The successful listing of UK chip designer Arm and German footwear brand Birkenstock's steadying across the Atlantic is slowly starting to bring a vote of confidence back to the IPO market. For those ready to exploit this, Howard Kennedy remains prepared to assist businesses in the UK with any issues or queries regarding flotations on the main market, AIM, or AQSE.
For more information see the LSE's Equity Capital Markets Update: https://www.lsegissuerservices.com/spark/h4uw4sWLHWxVMHfZb6Lxj2.
To get in touch with Howard Kennedy contact jeremy.landau@howardkennedy.com. Or, to find out how we can help your business visit the Howard Kennedy Capital Markets page at https://www.howardkennedy.com/expertise/services/capital-markets.
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