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Strong Year For Capital Raising Continues For The London Stock Exchange

Date 12/10/2021

Julia Hoggett, CEO, London Stock Exchange plc: 

“The UK capital markets have had an extremely strong 2021 as the busiest IPO market globally outside the US and Greater China. The evolving make-up of companies raising capital from the UK’s public markets has been noticeable with almost half of all IPO capital raised on the London Stock Exchange being from tech or consumer internet companies, and 20 founder led businesses have joined our markets. Over the coming months we look forward to working with the Government, Regulators and the wider ecosystem to ensure that the UK’s capital markets evolve to meet the changing needs of companies and investors and remain one of the most compelling places globally for them to achieve their ambitions.”

 

Public markets have continued to be an engine of the UK economy and London continues to support the funding needs of global businesses:

  • The number of companies choosing to go public this year is the highest since 2014, and in doing so they raised £13.7bn in capital
  • Innovative companies from a diverse range of sectors chose the public markets to finance their future growth, for example 43% of all IPO funding raised was for tech or consumer internet listings and 20 founder-led businesses have listed in London in 2021
  • The closed ended funds listed in the UK continue to innovate with world firsts in clean hydrogen and space tech as well as record volumes of capital raising with almost £5bn invested in renewable energy, private markets, infrastructure and other alternative strategies in Q3 2021
  • ETP listings continue to grow and over half of all ETF listings have been ESG funds in 2021
  • Issuers raised $463bn in the first nine months of 2021 through bonds listed on our markets, including 23 bonds channelling £18bn to sustainable finance in Q3 2021 - most notably the UK Government's record-breaking debut Green Gilt

In equity... 

  • Over £11bn in equity (IPOs and follow-ons) raised in Q3 2021 on the London Stock Exchange, bringing the 2021 total to £39.7bn to date - the highest year-on-year equity proceeds raised since 2009
  • 85 IPOs raised over £13.7bn – the highest number of IPOs in the first 3 quarters of the year since 2014 (100)
  • So far this year, tech and consumer internet listings account for 43% of the total IPO capital raised
  • Support for founder led businesses continues, with Microlise Group Ltd, Big Technologies plc, BiVictriX Therapeutics plc and Made Tech Group Plc admitted to AIM in Q3 2021. Over 20 founder led businesses have listed in London so far this year
  • Listings in Q3 2021 included WISE, with a valuation of over £8bn - the largest London float by market cap in 2021, and the largest ever tech listing on the London Stock Exchange (based on market cap)
  • In September, Petershill Partners Plc raised £1.0bn at listing (pre-greenshoe), making it the largest London IPO by proceeds raised in Q3 2021. UK life sciences company Oxford Nanopore raised £603m, the biggest healthcare IPO in London so far this year
  • HydrogenOne Capital and Seraphim Space Investment Trust became the first listed funds globally in their sectors – clean hydrogen and space tech, respectively
  • More than 25% of all follow-on capital raised in the first nine months of 2021 has been by listed investment funds. This has been led by strategies investing in alternative assets such as infrastructure, property and music royalties
  • London has continued to attract international companies, welcoming Baltic Classifieds Group plc (Estonia), LungLife AI Inc (US), Bradda Head Holdings Ltd (US), Sivota Plc (Israel), Caracal Gold (Kenya) and GreenRoc Mining Plc (Greenland) in Q3 2021
  • An additional 3 companies at IPO were recognised with the London Stock Exchange’s Green Economy Mark in Q3 2021 – Saietta Group Plc, Microlise Group plc and HydrogenOne Capital Growth plc

In fixed income... 

  • $463bn raised by more than 650 bond issuances in the first nine months of 2021 
  • 73 bonds on the Sustainable Bond Market (SBM) have raised £35.1bn to date in 2021, bringing the total to 311 active bonds and £87 billion in total debt capital raised
  • The UK Government issued its inaugural green gilt, a £10bn, 12-year bond maturing on 31 July 2033 - the largest sovereign green bond to list on the London Stock Exchange
  • The UK green gilt will be available for clearing through LCH Ltd RepoClear and is eligible as non-cash collateral for members placing margin with LCH Ltd and LCH SA
  • It is also expected to be eligible for inclusion in FTSE Russell’s World Government Bond Index (WGBI). The gilt has been admitted to the Sustainable Bond Market and is also available for trading on the London Stock Exchange’s Order Book for Retail Bonds

In Exchange Traded Products... 

  • 210 ETP listings in 2021 to date, up from 127 in the first nine months of 2020
  • 1,393 ETFs and 379 ETCs/ETNs now listed on the London Stock Exchange
  • Over the half of London ETF listings in 2021 are ESG-linked funds – 68 ESG ETF listings, up from 37 year-on-year
  • There are now 231 ESG ETFs listed on the London Stock Exchange, one of the fastest growing finance instruments on our markets
  • There are 43 ETP issuers on our market, following 5 new issuers in 2021