Stock market listings surge in 2010

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The number of stock market flotations more than quadrupled in 2010, the London Stock Exchange has revealed

The number of stock market flotations more than quadrupled in 2010 amid a revival for company listings, the London Stock Exchange (LSE) has revealed.

More stable market conditions saw 89 initial public offerings (IPOs) on the LSE over the past year, up from just 22 last year.

The LSE said firms listing on the London market raised £10.1 billion against £1.5 billion the year before when the recession hit investor appetite for IPOs.

This year has seen a swathe of firms joining the LSE, including online grocery delivery service Ocado, Superdry fashion group SuperGroup and more recently Betfair, the world’s largest international online sports betting provider.

In July, Essar Energy – one of India’s top private sector power and oil and gas firms – also listed raising £1.3 billion, marking the largest ever Indian IPO in London.

Tracey Pierce, director of equity primary markets at the LSE, said: “We have seen a rejuvenation in the IPO market during 2010.

“Whilst last year our markets supported a significant amount of fundraising through further issues, 2010 injected some very positive signs of life into the new issues market, including a number of major wins for London.”

But not all this year’s IPOs have been an immediate success in a sign that investors are still wary.

Ocado listed in July with a significant amount of fanfare, but major doubts over its value saw the launch price slashed to 180p and it lost 10% on the first day of dealings.

Despite recent takeover speculation, Ocado shares are still trading below their debut price, at around 171p.

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