Private Equity Exits via London IPOs in 2013

    February 2014

    The London IPO market started its comeback in 2012 but 2013 proved to be the turning point with a significant improvement in market confidence and investor appetite.

    Private equity sponsors have been quick to take advantage of the IPO window. During 2013 there were 105 IPOs on the London markets, of which 18 were IPOs of private equity-backed companies (12 onto the Main Market and 6 AIM transactions). This equated to 54% of all financial sponsor-backed IPOs in 2013 on European exchanges. The early successes of 2013 have driven more and more businesses to consider the IPO route. The market is anticipating approximately 50 -60 IPOs during the first quarter of 2014, many of them will have started the process in earnest during the second half of 2013 in response to the deals that got away at that time. This is the strongest pipeline that London has seen for some years and at its current pace 2014 may exceed the 252 IPOs recorded in 2007.

    Given the importance of the IPOs that took place in 2013 as a point of reference for what is happening in the market currently, we have prepared a detailed analysis of those deals.  Our analysis looks separately at IPOs on London’s Main Market and AIM.