Samuel Kerr’s Post

Its certainly been a momentous day for the London Stock Exchange after the Financial Conduct Authority unveiled sweeping reforms to the UK's listing regime. But what does it all mean for IPOs? Cristiano Dalla Bona Taku Dzimwasha and I go through it all with some of the best experts we could find to discuss how much of a game-changer this is for UK ECM. A huge thanks to Mark Austin, Michael Jacobs, James Roe, Danny Tricot and Clive Hopewell for contributing to this piece. Hope you enjoy !

It was a huge day for the London Stock Exchange today as the Financial Conduct Authority made the most sweeping reforms to the UK listing regime in decades. The changes are certainly a leap forward for companies looking to list in the UK and has the potential to revitalise the London IPO market. The shift in disclosure requirements removes significant regulatory friction for companies seeking to list on the LSE and new dual-class structures create a more attractive environment for pre-IPO shareholders and brings London into line with other jurisdictions like NY. Entrepreneurs considering a listing may also appreciate the change in rules that has dropped the requirement for a shareholder vote in Class 1 transactions, putting public companies on an equal footing when it comes to M&A. But there is more work to do particularly on freeing up domestic capital to invest in UK equity. Lucinda Guthrie and I put together a piece for the Evening Standard sharing our thoughts on today's big news and the challenge ahead for new UK Chancellor Rt Hon Rachel Reeves. Have a read here: https://lnkd.in/dDbHi6qa Let me know what you think! #UK #LSE #listing #ipo #deals #businesses #fca

In this week's ECM Pulse, we look at a historic election in the UK. There are hopes that the growth-focus of the country's new Labour government could lead to specific structural reforms that could turbocharge UK equities and the IPO market. In the short-term political stability in the UK is likely to lead to further investment in equities and greater participation in ECM deals. Read all in this week's ECM Pulse.

John West is #hiring. Know anyone who might be interested?

Crisis ? What Crisis? While European IPOs have taken a bit of a battering in recent weeks investors have not put down pens for summer quite yet. Europe's blue chip buysiders are increasingly focused on making big trades in hot sectors that they like through reverse enquiries to prompt big block trades. Traditionally a hedge fund product, accelerated trades are increasingly becoming the domain of long-onlies who are using them to secure big positions in select names. Read all in this week's ECM Pulse (published yesterday).

Equity capital markets continue their recovery in 2Q with big deals prompting an IPO revival in Europe and the US. Chunky follow-ons also contributed to higher volumes in 2H24. USD186.3bn of volumes in 2Q contributed to a strong first quarter. Total 1H volumes of USD 358bn are up 11% over last year, although a decline in APAC issuance has tempered a strong recovery in the Americas and EMEA. Total issuance across those two regions is up 52.5% and 30% respectively with European IPO volumes up a huge 244% given several substantial large deals in 1H. Is it time for optimism? With a tempestuous US presidential election around the corner, it feels a little early, perhaps, to be opening the champagne, but market conditions do feel far more constructive in 2024. Huge thanks to Perris Lee, Troy Hooper, Cristiano Dalla Bona, Taku Dzimwasha and Raj Saiya for all their help in putting this together !

In today's ECM Pulse we did a deep dive on what went wrong last week in the IPO of Golden Goose and whether the company could have gone ahead after French president Emmanuel Macron's political gambit smashed the company's peers thereby substantially reducing its IPO discount. This made what was already a delicate balancing act almost impossible. With political nervousness back in Europe for at least a couple of weeks, will contagion spread to other deals? Read all in this week's ECM Pulse.

In yesterday's ECM Pulse we looked at the last of Europe's IPOs before the summer break and the hopes that they can continue the continent's IPO winning streak. Well over 70% of IPOs in Europe priced this year are trading up and on a weighted basis European listings have outperformed major benchmarks, as well as US IPOs. There are hopes that Golden Goose and others will send investors into summer happy and not sour the mood before a big issuance widow in September, read all in this week's ECM Pulse.