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New Private Equity IPOs Report, March 2018

We are pleased to share the inside story and key trends of the IPOs of private equity backed companies on the London markets in 2017.  Combined with our previous private equity IPO trends reports we now cover five years of private equity backed IPOs and there are some interesting themes emerging we consider in our latest report.

IPOs remain an important tool in private equity exit strategies, and we believe that the outlook for IPOs generally and IPOs of private equity backed companies in particular is good.  However time is of the essence for companies considering a flotation, due to the likely effect of Brexit negotiations on market sentiment in the fourth quarter of 2018 and early 2019.

The key highlights from the report are:

  • There were 69 IPOs in 2017 of trading businesses, on the London Stock Exchange, a 15% increase on 2016 numbers (2016:60), including 21 private equity backed IPOs (2016:16).
  • In 2017 these IPOs raised £7.1 billion (2016: £6.7 billion) a 5.9% increase.
  • Private equity backed IPOs raised £3.1 billion in 2017, a 138% increase from 2016 (2016:£1.3 billion) and represented 40% of all new money raised in IPOs.
  • 2 of the 3 most valuable IPOs were private equity backed.
  • Mid Market PE sponsors have taken increasing interest in IPOs which has coincided with a move towards AIM across the last 5 years with 62% of private equity IPOs on AIM in 2017 compared to 50% in 2016 and 26% between 2013-2015.
  • Of the private equity backed  IPOs we surveyed in 2016 and 2017, 16 came to market less than five years after the incumbent private equity investor had invested, 10 of those 16 in less than 3 years from the initial investment.
  • Across 2013-2017 the largest number of IPOs were in the Financial (134), Consumer (97) and Industrials (60) sectors and the private equity backed IPOs mirrored this sector spread. In 2017 the largest private equity backed IPO was in the Energy sector.

In 2017 Pinsent Masons advised clients on a wide range of capital markets transactions and on over £3 billion of mid-market private equity transactions.  We were ranked the No.3 law firm by number of London Stock Exchange listed companies and the No.1 law firm to AIM companies according to the Adviser Rankings, and in the top 5 for number of private equity deals completed by a law firm in the UK (The Lawyer).  This blend of expertise makes us well placed to report again this year on the trends in the private equity IPO market.   

We would be delighted to come and speak to you and your colleagues about this report and our own experience of private equity backed IPOs.  If this was of interest do let us know and we will arrange a suitable time to do so.

You can register to download the report here.

For more information in relation to the report and our corporate practice group, please contact one of the key contacts below:

Key Contacts