2021 was an extremely strong year for UK equity capital markets, which continue to demonstrate their enduring appeal and value to investors and businesses internationally say KPMG.

International accountancy firm KPMG have released a new market update showing how 2021 proved to be a resurgent year for UK IPOs.

In spite of ongoing Covid-19 related uncertainty and wider market volatility, a total of 108 companies came to market in London in 2021, more than 2020 (38) and 2019 (35) combined.

The report shows how the UK once again demonstrated its position as the leading European IPO venue: total IPO Funds Raised in London were £13.9 billion, ahead of Stockholm (with Funds Raised of approximately £9.4 billion, including £1.7 billion raised by the IPO of Volvo) and Amsterdam (approximately £7.2 billion).

According to KPMG, Financial Services was the key sector from an IPO perspective, accounting for approximately 35% of total Funds Raised. This was largely driven by the market debut of 19 funds or investment vehicles, compared to only 9 and 6 in 2020 and 2019 respectively.

Additionally, the leading accountancy firm say it was particularly interesting to see the IPO of PE giant Bridgepoint, “with rumours of other PE firms set to follow suit in 2022.”

Encouragingly, TMT was the other key IPO sector (accounting for approximately 32% of total Funds Raised), “demonstrating London’s ability to attract high profile, fast growing tech companies, including the likes of Darktrace and Deliveroo.”

The market update shows key drivers behind the increase in the volume of IPOs this season include many London Stock Exchange (LSE) newcomers benefitting from pent up investor demand built over the COVID-19 period and relatively strong equity market conditions.

KPMG say the IPO pipeline remains exceptionally strong for 2022.

Despite inflation worries, KPMG say they expect the positive momentum of the last 12 months to continue with IPOs anticipated to be delivered both by private issuers and through public company demergers.

Full report available here.

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