International listings buoy trading on LSE

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Over £10.4bn was raised through IPOs on the London Stock Exchange in the first half of 2006, a 64 per cent increase on the same period last year, confirming London’s status as a magnet for international stock listings.

In the six months to the end of June, the LSE said a total of 194 companies had listed on the either the main market or AIM, with 50 international IPOs from 15 different countries. Seven international companies listed on the main market, raising a total of £2.7bn, while the other 43 international companies listed on AIM raised £1.8bn.

In total, there were 40 listings on the main market, raising £5.2bn and 151 on AIM, raising £4.7bn.

In addition, the LSE said trading grew strongly, with the number of electronic SETS trades for the month of June up 77 per cent compared to last year at 7.3m. In terms of value, SETS trading in June increased 68 per cent to £138.2bn.

The total value of UK equities traded in June rose 42 per cent to £276.5bn, while the total number of trades rose 59 per cent to 8.1m.

Rupak Ghose, analyst at Credit Suisse, said the strong results were not a surprise as “most of the activity was booked last year”. He added that he expected “a slight slowdown in the second half of the year as the group trades against stronger comparatives”, but he pointed out that July would be a strong month because of the Rosneft and Standard Life listings.

In a separate announcement, Euronext said that according to independent figures from PricewaterhouseCoopers it had raised more capital through new listings than any other European exchange in the second quarter of 2006, totalling €4.16bn.

Since the start of the year, Euronext said it had raised €8.7bn from 69 companies, compared with the 78 that joined the exchange in the whole of 2005.

By mid-morning, LSE shares were up marginally at £11.44.

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