In this issue of Equity Capital Markets: It has been a positive quarter for global equity markets and, notwithstanding the ongoing Brexit uncertainty, for primary fundraisings in the London markets.
In Q3 2017 a combined total of more than £2.5 billion of new money was raised on the Main Market and AIM. An additional £3.8 billion of further money was raised across both markets in Q3 2017 taking total funds raised on the Main Market and AIM to £6,4 billion during Q3 2017.
Global IPO activity this year is approaching its busiest year since 2007. Supported by rallying markets and low volatility, the 25 AIM admissions in Q3 2017 (Q2 2017: 18 AIM admissions) make Q3 2017 the most active quarter in terms of AIM admission since Q2 2016 (26 AIM admissions) and the total of £2.0 billion raised on AIM in Q3 2017 was almost equal to total funds raised on AIM in the whole of H1 2017 (Q1 2017: £825 million, Q2 2017: £1.2 billion).
As at 30 September 2017, the average market capitalisation of AIM companies was £104 million, a significant increase over the £97 million average at the end of Q2 2017 and the first time that the average capitalisation of AIM companies has exceeded £100 million.
As we enter Q4 2017, concerns over Brexit talks, tension between the USA and North Korea and expected hike in US interest rates are playing a vital role in investors’ assessment of future market performance. Nonetheless, equities markets have proved robust so far and the uncertainties are somewhat offset by the continued availability of cheap money and continued growth in key global economies.
Further figures and analysis are contained in the PDF newsletter.
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
This article was previously published on Smith & Williamson prior to the launch of Evelyn Partners.