© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Smaller Companies Choose IPOs to Fund Growth
Posted 3rd March 2015

Smaller Companies Choose IPOs to Fund Growth

The volume and value of Initial Public Offerings (IPOs) on London's junior market increased last year as SMEs sought funding for growth, according to data from global information services company Experian.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Smaller Companies Choose IPOs to Fund Growth
Image

Smaller Companies Choose IPOs to Fund Growth

The volume and value of Initial Public Offerings (IPOs) on London’s junior market increased last year as SMEs sought funding for growth, according to data from global information services company Experian.

There were 75 IPO transactions on London Stock Exchange’s (LSE) AIM last year worth a total of £2.5 billion, an increase in value of 134 per cent on 2013.

IPOs on AIM provide an opportunity for SMEs to seek growth funding, while the increased activity will also encourage business owners looking for an alternative to a sale.

Wholesale and Retail was the most active sector, contributing 41 per cent to the overall value of transactions, followed by Manufacturing (34 per cent) and the Information and Communication sector (24 per cent). Finance and Insurance services was the third most active sector on London’s junior market in 2013, contributing 30 per cent of the value, but only ranked in fifth place last year, accounting for 12 per cent of the total transaction value.

The volume and value of IPOs on the LSE’s main market also increased last year. The number of IPOs went up by 43 per cent from 40 to 57, while the total value rose to £12 billion, up 12 per cent on the £10.6 billion recorded in 2013. This was the highest level of volume and value recorded on London’s main market since 2007. Large IPOs worth more than £100 million dominated the main market, and private equity investors were involved in 20 of the large transactions, accounting for £7 billion of the total.

Financial and Insurance services was the most active sector on the London Stock Exchange last year, raising £5.5 billion through 39 deals, followed by the Wholesale and Retail sector, which completed 32 transactions worth £5.5 billion combined, while the Information and Communication sector completed 27 transactions worth £3.3 billion.

Wendy Driver, Business Development Manager at Experian UK&I, said: “The growing number of IPOs on the AIM suggests smaller businesses are increasingly considering listing as an option to secure the funding they need to take their company to the next level. Business owners may be curious about what their company could be floated for and should look back at IPOs of companies similar in size and sector in previous years to decide whether it’s an option they wish to explore further.”

Categories: Finance, Strategy


You Might Also Like
Read Full PostRead - Eye Icon
Driven by Success: Auto Europe Group – Imad Khalidi CEO of the Month: USA
Leadership
05/07/2016Driven by Success: Auto Europe Group – Imad Khalidi CEO of the Month: USA

For over half a century, Auto Europe has been a leader in worldwide car rental services.

Read Full PostRead - Eye Icon
PaySaxas, Wise, and Others: Best Multi-Currency Business Accounts in 2024
News
30/10/2023PaySaxas, Wise, and Others: Best Multi-Currency Business Accounts in 2024

PaySaxas, Wise, and Others: Best Multi-Currency Business Accounts in 2024  Doing business outside one country and settlements with foreign partners require a solution — to open an international online current account. Such an account will help to make p

Read Full PostRead - Eye Icon
Time Is Of The Essence – Integrate Your Acquisitions Now Or Risk Your ROI
M&A
21/09/2022Time Is Of The Essence – Integrate Your Acquisitions Now Or Risk Your ROI

Strategic acquisition remains a popular option to rapidly scale. The Private Equity ‘Buy and Build’ methodology enables portfolios to gain additional market traction whilst obtaining valuable IP and gaining useful new Human Capital. These are distinct posi

Read Full PostRead - Eye Icon
Best Classical Music Promotions Company – UK
Finance
01/07/2016Best Classical Music Promotions Company – UK

From Sweden Productions are a London-based production company specialising in production management and promotions of large-scale high profile concerts, festivals and events with a Swedish connection.

Read Full PostRead - Eye Icon
Small Business Struggles
Finance
13/08/2015Small Business Struggles

The British Business Bank is regulator of a scheme that ensures small businesses are referred to relevant alternative finance providers in the event of being turned down for bank funding. But what's taking so long?

Read Full PostRead - Eye Icon
Ten Biggest Legal Mistakes Tech Start-ups Make
Strategy
15/06/2018Ten Biggest Legal Mistakes Tech Start-ups Make

This month my company (A City Law Firm) marked our ten-year anniversary, which has made me think back to our first year, how we started and some of the early mistakes we made.

Read Full PostRead - Eye Icon
Landis Rath & Cobb LLP Advise Centre Lane’s acquisition of Saladworks ($16.9 million)
Finance
15/07/2015Landis Rath & Cobb LLP Advise Centre Lane’s acquisition of Saladworks ($16.9 million)

Landis Rath & Cobb LLP Advise Centre Lane's acquisition of Saladworks ($16.9 million)

Read Full PostRead - Eye Icon
Citation Acquires QMS International
M&A
02/07/2015Citation Acquires QMS International

Citation Acquires QMS International

Read Full PostRead - Eye Icon
How a Car Accident Lawyer Can Help You Maximize Your Compensation
News
28/08/2024How a Car Accident Lawyer Can Help You Maximize Your Compensation

How a Car Accident Lawyer Can Help You Maximize Your Compensation Regardless of the severity of injuries and degree of fault, car accidents do not always end up in a fair settlement amount for the victim, especially if they cannot back up their claims. Car acc



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow