London Raises Most IPO Capital Since 2007, Leading Europe
The London Stock Exchange raised more funds for initial public offerings (IPOs) in 2021 than any other year since 2007.
Figures published by the London Stock Exchange Group (LSEG) showed that 122 companies raised more than £ 16.8 billion, the highest in Europe and more than the Paris and Amsterdam stock exchanges combined. An additional £ 32.4 billion ($ 43.6 billion) was raised through offers from existing listed companies.
It is also a 13-year record for London’s Alternative Investment Market (AIM), which has raised £ 9 billion in IPOs and additional capital and admitted 64 companies this year.
The main and junior scholarships have admitted the highest number of companies since 2014.
Despite a recent report revealing that the London market was viewed by some investors as less technological than the United States, LSEG figures showed that 39% of all IPO capital on the main exchange was raised by companies from consumer Internet or technology, including Wise (WISE), Oxford Nanopore (ONT), Darktrace (DARK) and Deliveroo (ROO).
Meanwhile, AIM has seen three of its biggest signings in terms of amount raised this year: Life Science REIT (LABS) at £ 350million, Revolution Beauty Group (REVB) at £ 300million and Victorian Plumbing Group. (VIC) to £ 298million.
More than 20% of the equity raised in London – £ 11.6 billion – has been raised by listed investment funds.
Boom in ESG funds
LSEG also revealed that 141 bonds had been admitted to its international securities market in 2021, while £ 514 billion had been raised by 1,887 bonds as of December 29.
He added that there were now 310 new Exchange Traded Products (ETPs) listed in London, up from 196 last year, and almost half were environmental, social and corporate governance (ESG) funds.
Last month, an analysis by Calstone found that ESG fund inflows were outpacing other funds and “cannibalizing other types of funds in the race for new capital.”
Increase in foreign exchange volumes
Total currency volume hit a daily record of over $ 680 billion, LSEG said.
Currency aggregator FXall, which this year acquired financial market data firm Refinitiv, added 200 clients and was up 9% year-on-year.
Murray Roos, Group Head of Capital Markets at LSEG, said: “2021 has also been an important year for LSEG. The integration of Refinitiv brought together our FX, Fixed Income and Equity businesses to form the Capital Markets division of LSEG, a multi-asset and diversified global financial market infrastructure.
“I am happy that these companies have experienced strong growth, new customers and record numbers. The strength of this combination is demonstrated in the innovation we have brought to the market this year.
“We look forward to building on this momentum and recent regulatory changes in the UK to make London an even more attractive place to raise capital. “
Read More: Can Listing Reforms Shake Up Britain’s Sclerotic Stock Market?
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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade a CFD.
You can still benefit if the market moves in your favor, or suffer a loss if it moves against you. However, with traditional trading, you enter into a contract to exchange legal ownership of individual stocks or commodities for cash, and you own it until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the total value of the CFD trade to open a position. But with traditional trading, you buy the assets for the full amount. In the UK there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs come with overnight costs to hold trades (unless you’re using 1 to 1 leverage), making them more suitable for short-term trading opportunities. Stocks and commodities are more normally bought and held longer. You could also pay a commission or brokerage fees when buying and selling assets directly and you would need a place to store them safely.
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