British IPOs raise more in 2021 than in any other year since 2007

04/02/2022

British initial product offerings (IPOs) raised more funding in 2021 than in any other year since 2007, figures have revealed.

The research, published by the London Stock Exchange (LSE), suggests that the UK is the number one destination for high-growth companies in Europe.

An IPO is when a private company becomes public by selling its shares to investors on a stock exchange.

According to the report, 122 new companies were listed on the LSE in the 12 months to December 2021, raising a phenomenal £16.8 billion.

This means the stock exchange raised more capital last year than in any other year since 2007 and more than double 2020’s figure of £3.1 billion – and is by far the largest stock market in Europe, raising more equity than the Amsterdam and Paris exchanges combined.

It is also the most equity capital raised outside of the US and Greater China.

The analysis further shows that 39 per cent of all IPO capital in 2021 was raised by tech or digital service companies, despite the sector representing just 29 per cent of new listings that year.

Together, 37 tech companies – including food delivery app Deliveroo, consumer comparison site Trustpilot, and fintech Wise – raised a combined £6.6 billion in IPO capital in 2021.

Commenting on the figures, Julia Hoggett, CEO of LSE, said: “2021 has demonstrated the strength of the UK capital markets with our most active year since 2007. It has also highlighted the vital role LSEG’s capital markets play in supporting innovation, growth and the transition to a low-carbon economy.”

The study also reveals that the UK is now home to 116 unicorns – firms worth $1 billion or more in value – and 213 futurecorns – firms with the potential to reach unicorn status.

For help and advice with related matters, please get in touch with our team today.