UK IPO market on the up

IT services sector among four most successful IPO markets, KPMG claims

Despite the dramatic fall in the global equity markets, overall activity in the UK’s Initial Public Offering (IPO) market is up on last year, according to new research from insolvency firm KPMG.

A study by KPMG’s Capital Markets Group shows there were four successful main market debuts in June this year, including computer services company, Clinphone, which raised £60m. This bring the UK’s main market tally to 15 trading company IPOs, raising combined funds of £4,152m so far this year – an increase on the 12 trading company IPOs raising £2,528m over the first half of 2005.

Tony Fry, transactions services partner, KPMG’s Capital Markets Group, said: "Although activity levels are up on last year, the wheels seem to have come off the IPO wagon in the last few weeks with a number of cancelled or delayed floats. The issue here is the instability of the market rather than its absolute level. If markets settle down, we will see normal service resume in September. If volatility continues, we may well see the IPO window close for a lot longer.

"The market is nervous but there is clearly an appetite for the right stocks. The fact that stockbroker firm, Bridgewell, made a successful debut on AIM is a positive signal – it shows that investors believe stock market activity will continue. Good quality businesses can successfully launch an IPO provided they are realistically priced," added Fry.