Volatility sinks new floats -KPMG
Initial public offerings in London's main stock market jumped 64 percent in the first six months of this year but activity has slowed considerably in June on the increased market volatility, accounting firm KPMG 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," it said in a statement on Monday.
"If markets settle down, we will see normal service resume in September. If volatility continues, we may well see the IPO window closed for a lot longer," it said.
In the first six months of this year, a total of 15 trading companies raised a combined 4.15 billion pounds in the main market, up from 2.53 billion pounds a year ago raised by 12 trading firms, it said.
A total of 26 trading firms that have joined the main UK market since the beginning of last year have outperformed the market, rising 23 percent on average, versus the market's 9 percent advance.
But only 16 companies out of the total are recording gains from their IPOs, led by the best performer Carter & Carter which jumped 139 percent above its issue price, and Kazakhstan miner Kazakhmys up 115 percent.
In the Alternative Investment Market (AIM), IPOs more than doubled to 4.48 billion pounds in the first half from 1.8 billion a year ago, but the number of companies which went public dropped to 146 from 184 a year ago, KPMG said.
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