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Number of IPO’s set to grow in first quarter 2013

Posted On : Feb-08-2013 | seen (1037) times | Article Word Count : 389 |

Whilst 2012 promised an improvement in the IPO market in the UK, this generally failed to materialise, however a number of larger IPO’s happened towards the end of the year.
Whilst 2012 promised an improvement in the IPO market in the UK, this generally failed to materialise, however a number of larger IPO’s happened towards the end of the year.

There is now expected to be a growing pipeline of privately owned companies looking to IPO on global stock markets in the first 3 months of 2013. The performance of equity markets across the world over recent months, including here in the UK, has generated interest again amongst growing companies in undertaking IPO’s.

The rise in valuations of companies already listed on stock markets through 2012, and the reluctance of banks and other lenders to support the growth ambitions of privately owned companies, has led to a steady increase in the number of companies considering the IPO route. Market commentators predict that companies from the technology, healthcare and financial services sectors will be the front runners.

An improvement in the global economic outlook provides a degree of comfort

More positive news on rising output in China and better trends in the US housing markets and employment provide some better economic news, helping to stabilise a fragile global economic climate. And indications are that some degree of economic stabilisation should come into play in the first half of 2013, with global economic growth forecast to increase from 3.3% in 2012 to 3.6% in 2013, on IMF estimates.

Be prepared is the key message for companies

Companies wishing to capitalise on the uplift in valuations which some of UK listed companies have enjoyed over recent months on public markets, need to be prepared to act quickly and decisively if they want to take advantage of more favourable market conditions and raise funding on the UK stock markets.

For example, the average length of the IPO process for would-be AIM companies is 4-5 months, and some companies may require longer. For companies considering an IPO in the autumn, now is the time to begin to take the first steps by assessing the viability of an IPO and undertaking a review of financial housekeeping.

Now, more than ever, it will be those companies that have taken the time to prepare thoroughly ahead of an IPO that will hit the ground running post flotation, and see the greatest benefits in their valuation and fundraising capacity.

Article Source : http://www.articleseen.com/Article_Number of IPO’s set to grow in first quarter 2013_249825.aspx

Author Resource :
John Holland was the former head of the UK regional operation at the London Stock Exchange, with responsibility for both AIM and The Main Market. He has been advising companies since 1995 about stock market flotation and is a regular author of company finance and stock market publications and articles in business and financial press as well as various institutions on the internet.

Keywords : stock market flotation, raise funding on the UK stock markets, Floating a company, AIM Stock Market,

Category : Finance : Finance

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