Finally, London's main market welcomed two new entrants this week after a series of false starts in the IPO market. Waste management specialist Biffa (BIFF) and LED lighting group Luceco (LUCE) both successfully floated on Monday, providing some relief to an IPO market which has seen a number of companies get to the brink of listing before pulling back in the past month.
There was always going to be a hiatus around the EU referendum vote, but the post-vote market gyrations saw the effect extended through the summer months, which are traditionally quiet for IPOs anyway. Research by IPO specialists at EY shows there were six IPOs in the third quarter. In the first nine months of the year, this figure jumps to 46 across the Main Market and Alternative Investment Market (Aim), although this is down 11 per cent on the previous year, with total proceeds raised off by 47 per cent.
September saw just one high-profile float, Hollywood Bowl (BOWL), and the first two weeks of October saw both car parts manufacturer TI Fluids and gyms operator Pure Gym pull plans to list citing difficult market conditions, even as the FTSE 100 was setting new record highs.
Biffa and Luceco's floats have restored some confidence, but Biffa had to slash its float price by up to one-third to get it away. Investors will also have an eye on software giant Misys, which is in the process of trying to get its own IPO away, but has reportedly had to scale back the proposed pricing.
