London notches best year for floats since 2007

A wave of listings flooded London markets last year as private firms pushed to capitalise on strong investor demand, reveals new figures published today.

Some 121 businesses floated in the City in 2021, the highest volume since 2007, according to research carried out by consultancy EY.

Newly listed firms raised over £16bn in the capital last year.

The financial services, real estate and tech sectors registered the strongest listing performances, according to EY.

Elevated float activity has been driven by investors pouring into equity markets in search of yield amid a record low interest rate environment.

Booming trading volumes among retail investors that have entered financial markets for the time during Covid-19 lockdowns widened liquidity on global markets, encouraging smaller private firms to go public in the process.

Scott McCubbin, initial public offering (IPO) leader at EY, said: “Last year was an exceptional year for the UK IPO market, with companies taking advantage of the open market to list in record numbers.”

However, a combination of soaring inflation and the possibility of the global supply chain crisis rumbling on is likely to dampen listing activity in 2022, McCubbin added.

Across the world, 2,388 deals took place, the most activity recorded in the last two decades and up 64 per cent over the last year. 

Some $453bn was raised collectively.