London IPO activity skyrockets in Q1 2021 - IPO Eye An overview of the London Stock Exchange listings in Q1 2021
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London IPO
activity skyrockets
in Q1 2021
IPO Eye
An overview of the London Stock
Exchange listings in Q1 2021Main Market AIM
Twelve floats Raised: Eight admissions Raised:
£5.2b £441m
Largest IPO: Largest IPO:
Dr Martens plc tinyBuild Inc
Raised: Raised:
£1.5b £154m
In addition to the extensive IPO activity, the London markets also continued to
offer support to existing issuers with over £9b being raised in further offers and
transactions in the quarter, demonstrating the depth of market available. This
represents 25% of total follow-on funds raised in EMEIA in Q1 2021.
1IPO markets — historical performance
Main Market 6,000
19
20
18
17
5,000
16
Main Market — 14 14
14
12 IPOs raised 4,000
12 12
£5.2b in Q1 12
Funds raised £m
12
2021. The
No. of IPOs
11
3,000 10
largest by funds
9
raised was 7 8 8
8
Dr Martens plc
2,000 6
6
— which raised 5
4
£1.5b. 1,000 4 4 4
3 3
2
2 2
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019 2020 2021
Funds raised £m No. of IPOs
2IPO markets — historical performance
IPO 1,000 18
AIM market 900
16 16 16
16
800 14
14
AIM — Seven
AIM admissions
700
12
raised £441m 600
10
Funds raised £m
in Q1 2021.
10
No. of IPOs
9 9
500
The largest by 8
8
funds raised 400
7 6
7
was tinyBuild 300 5
6
Inc — which 5 5
4
200
raised £154m.
4
3 3
100 2
1 2 2
0
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019 2020 2021
Funds raised £m No. of IPOs
3Market overview
Market performance 140.00 FTSE 100
The Main Market indices have continued a gradual rise over the quarter, reflecting FTSE 250
both an increase in confidence in the global and UK economy. 130.00 FTSE All-Share
The AIM market has continued to trade particularly well, and the market performance FTSE AIM All-Share
reflects the share performance of a number of companies that have traded well under 120.00
COVID-19 conditions, including both internet-based enterprises and healthcare and
technology businesses.
110.00
Global IPO activity
100.00
Global IPO markets have had the best start to the year in over 20 years with more
than $65b being raised in over 300 IPOs. This excludes US-focused Special Purpose
90.00
Acquisition Company (SPAC) listings which have also been extensive in the quarter
with around 300 SPACs raising over $90b — compared to some $80b in the whole
of 2020. 80.00
NASDAQ was the leading global exchange, hosting 72 IPOs and raising over $24b
in the process. US markets combined hosted 99 IPOs and raised $41b with Greater 70.00
China markets hosting a further 133 IPOs raising $29b.
Outside of the US, China and the UK, mainland Europe also came alive with 60.00
Amsterdam and Frankfurt posting some of the large IPOs in Q1 2021 helping to
propel global IPO activity to its current heights. 50.00
01-06-2020
01-09-2020
01-05-2020
01-04-2020
01-08-2020
01-03-2020
01-04-2021
01-03-2021
01-02-2020
01-01-2020
01-02-2021
01-01-2021
01-07-2020
01-10-2020
Globally, technology IPOs led again by both numbers and proceeds in Q1 2021, with
01-12-2020
01-11-2020
big technology IPOs driving high valuations and getting a lion’s share of the IPO
proceeds. Meanwhile, energy IPOs are making a comeback as one of the better-
performing sectors, particularly the renewable energy sector.
4Market listings
New Issues — Main Market
Private Country of Market cap. Funds Placing Closing Closing Quarter end %
Date of Equity (PE) primary on admission raised price price (after first price at change in price
admission Company backed business Sector (£m) (£m) (p) day of trading) QTR end (p) from IPO
29-Jan-21 Dr Martens plc Y United Kingdom Personal Goods 3,700 1,489.0 370.0 450.0 453.0 22%
02-Feb-21 VH Global Sustainable Energy Opportunities plc United Kingdom Equity Investment Instruments 243 243.0 100.0 101.0 99.2 -1%
02-Feb-21 Moonpig Group plc Y United Kingdom General Retailers 1,200 540.0 350.0 410.0 424.6 21%
09-Feb-21 Foresight Group Holdings Ltd United Kingdom Financials 455 227.0 420.0 460.0 425.0 1%
16-Feb-21 Cordiant Digital Infrastructure Ltd United Kingdom Equity Investment Instruments 370 370.0 100.0 99.0 99.2 -1%
26-Feb-21 Auction Technology Group plc Y United Kingdom General Retailers 600 300.0 600.0 800.0 820.0 37%
26-Feb-21 Cellular Goods PLC United Kingdom Personal Goods 25 13.0 5.0 19.0 9.6 91%
10-Mar-21 Fix Price Group Ltd Russian Federation General Retailers 5,958 1,248.0 699.9 700.3 708.1 1%
19-Mar-21 Caerus Mineral Resources Plc United Kingdom Mining 5 2.0 10.0 13.0 12.6 26%
22-Mar-21 Roquefort Investments plc United Kingdom Investment Banking and Brokerage Services 2 1.0 5.0 6.8 8.3 65%
23-Mar-21 Trustpilot Group Plc Denmark Technology 1,080 473.0 265.0 265.0 265.0 0%
26-Mar-21 Digital 9 Infrastructure plc United Kingdom Financials 300 300.0 100.0 99.5 99.5 -1%
New Issues — AIM
Private Country of Market cap. Funds Placing Closing Closing Quarter end %
Date of Equity (PE) primary on admission raised price price (after first price at change in price
admission Company backed business Sector (£m) (£m) (p) day of trading) QTR end (p) from IPO
13-Jan-21 Nightcap plc United Kingdom Travel & Leisure 14 4.0 10.0 14.0 27.0 170%
01-Feb-21 Supreme plc United Kingdom Household Goods & Home Construction 156 68.0 134.0 150.0 180.0 34%
02-Mar-21 Virgin Wines UK plc United Kingdom General Retailers 110 48.0 197.0 228.0 225.0 14%
09-Mar-21 tinyBuild Inc United States Leisure Goods 340 154.0 169.0 217.5 227.5 35%
12-Mar-21 AMTE Power Plc United Kingdom Electronic & Electrical Equipment 61 14.0 175.0 233.5 246.0 41%
15-Mar-21 In The Style Group plc United Kingdom General Retailers 105 60.0 200.0 237.0 222.0 11%
29-Mar-21 ActiveOps Ltd United Kingdom Technology 120 75.7 168.0 186.5 190.0 13%
31-Mar-21 Parsley Box Group plc United Kingdom Consumer 84 17.0 200.0 185.0 185.0 -8%
5Looking forward — 2021
The London markets have sprung back from the initial lockdown and we are Investor sentiment may also be dampened by disappointing 2020 earnings released
expecting activity to continue at pace as companies take advantage of the current by companies in sectors that have been more negatively impacted by COVID-19
market window. In the first week of the second quarter, the markets hosted the (e.g., traditional retail, aviation and hospitality) and face the potential of another
biggest tech listing on record and more tech listings are slated to follow in the “lost summer”.
remainder of the quarter.
In response, investors may pause to review their portfolios and rebalance their
IPO pipelines remain full and the increase in UK activity, which began in the latter investment allocations among different asset classes.
half of 2020, is expected to continue at pace as confidence in the post-pandemic
In the meantime, investors will continue to look for investment returns and
landscape builds and the UK’s credentials as an international leader hold fast.
take advantage of the liquidity and market sentiment, until they see better
In terms of sectors, we will continue to see activity from technology and healthcare returns elsewhere.
companies together with those that have seen business plans accelerate due to the
In terms of sectors, we believe that technology and health care IPOs will continue to
pandemic. We may also see the return of more traditional companies although this
dominate in the short term with investors remaining receptive to companies in the
will depend on the speed of the return of the economy to more normal conditions.
right sectors: e-commerce, food delivery, online gaming, cloud solutions and other
In order to strengthen the UK’s position as a leading global financial centre, the UK companies that have prospered during the pandemic.
government launched the Hill review in Q4 2020. The 15 recommendations from
this were published in Q1 and we are starting to see the process begin for the initial
“
rule changes to be put out for consultation, with any implementation likely to take
place later in the year. As a result, we are unlikely to see any significant impact on
IPOs until the second half of the year, although we understand that the expected
changes are already being built into IPO planning for deals scheduled for the latter
part of the year.
The UK has had the strongest opening quarter for
Whilst the UK would likely have to make some significant changes if it were to IPOs for 14 years, with the markets successfully
rival the US, the Hill Review is a positive step forward for the UK’s future in tech. weathering the effects of Brexit and bouncing back
Notwithstanding the rule changes, investors will also continue to have a keen
eye on issuers’ business models, governance and use of proceeds — all indicating from the stall in activity caused by the onset of
that robust preparation is key to a successful IPO. We can also see there is clearly
competition to IPOs from US SPACs seeking acquisition targets in the UK which
the pandemic a year ago. With an effective vaccine
could stand to affect or reshape the market here. rollout underway, momentum and confidence in the
UK IPO market should continue to build, but future
Globally
2020 has shown us that we can take nothing for granted and uncertainties will
growth may vary depending on the sector.
continue to weigh in and create market volatility. The potential for a further wave of
the pandemic, the speed of vaccination rollouts and efficacy rates and geopolitical Scott McCubbin
tension are all ingredients that may trigger a perfect storm. EY UKI IPO Leader 6Relevant programmes
EY Global IPO Centre of Excellence IPO Retreat
Our Global IPO Centre of Excellence is a virtual hub which 16–17 May 2022
provides access to tools and knowledge for every step Looking to float in the next 12–36 months
of the journey from finding out more about what going Our IPO Retreat helps CEOs and CFOs contemplating an IPO on one of the
public means to considering capital raising options and London markets. It gives unparalleled advice from key advisors and guest
speakers who have been through the process, and provides invaluable
addressing post-IPO risks. It provides access to all our networking opportunities. The IPO Retreat offers an invaluable opportunity to
IPO knowledge, tools, thought leadership and contacts find out whether an IPO is the right growth option for your business.
from around the world in one easy-to-use source. To find out more, contact:
Aneliya Petrova, apetrova@uk.ey.com
ey.com/en_gl/ipo
Contacts
Scott McCubbin Marcus Bailey
For more information about IPO Leader IPO Business Development Leader
the IPO Eye and on any IPO — Tel: + 44 20 7951 3519 Tel: + 44 20 7951 1357
related matter please contact: Email: smccubbin@uk.ey.com Email: mbailey2@uk.ey.com
Please visit ey.com/uk/IPO for more information on how we can help you on your IPO journey.
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