The ICAEW recently stated that there has been a significant decline of new listings on the London Stock Exchange during the last two years. So much so that the number of take private transactions exceeds the number of IPOs twofold.
London is not alone in this trend.
According to The Economist, global public equity markets had fallen by $120 billion by May 2024, driven by widespread delistings. The AIM market saw a 35% decline, with the number of listed companies dropping to 718 by June 2024.
What does this mean for owner managed and privately held companies looking to raise finance for growth?
For owner-managed and privately held companies aiming to secure financing, these shifts in the public equity market mean alternative funding options may be more viable.
There are numerous alternatives in the private equity space, with equity financing from private equity firms being one of the most prominent. It is essential for growing companies to thoroughly assess the available options before committing to a specific strategy.
A growing company should carefully evaluate all available funding avenues before making a decision.
How we can help
At UHY, our corporate finance and taxation teams are experienced in advising on all forms of fund raising, restructuring and mergers and acquisitions, for both listed and privately owned companies.
Please contact your usual UHY corporate finance adviser, should you wish to discuss this further.
