IPO market still fragile
Five new companies listed in the UK in the third quarter of 2004 raising a combined total of £878m, compared with just three companies for the same period last year.
The five new initial public offerings bring to 12 the total number of IPOs for 2004 so far, raising in excess of £2.1bn. This compares well with last year?s total for the same period which was £1.4bn, of which £1.2bn was attributable to Yell.
Despite positive signs of an IPO recovery, KPMG maintains the market remains fragile.
Neil Austin, head of new issues at KPMG corporate finance, said: ?Although 2004 has been better than 2003 it is still a nervous market. Only quality companies are putting their heads over the parapet and even then there is often considerable debate about pricing, with issue prices very often being at a discount to valuations which were indicated initially.?