THE STATE of the IPO market is in rude health, outperforming the FTSE 100 by 21%, figures from Deloitte reveal.
The 28 London Main Market listings completed this year generated an average return of 17.2%, an improvement on the end of last year, when the 30 IPOs in 2014 delivered an average return of 12.4%.
Chris Nicholls, head of IPO and equity advisory at Deloitte, said: “This year has been somewhat of a rollercoaster. All-time highs for the FTSE in the first half gave way to elevated volatility brought about by investor concerns over slowing growth in China and a collapse in commodity prices. Despite this, we have seen nine IPOs since mid-October, and overall in 2015 IPOs have outperformed the market by some margin.”
An investment of £1,000 in each of the 28 IPOs is now worth £32,811, whereas a £1,000 investment in the FTSE 100 at each IPO date would have fallen slightly to £26,867.
Deloitte said the IPO pipeline for 2016 “looks reasonably robust” with “strong demand for high-quality companies” and “continued confidence in the strength of London equity markets”.