Press releases 2008

39/08
29 December 2008
2008 Equity Fundraising Significantly Exceeds 2007

Companies across the London Stock Exchange’s markets raised a record £71 billion in new and further issues of equity during the course of 2008, significantly ahead of the total for the whole of 2007. These strong figures, despite difficult market conditions, were underpinned by a number of substantial secondary issues throughout the year, together with key international wins which consolidated the London’s position as the international capital market of choice. There is a good IPO pipeline awaiting an improvement in market conditions.

Martin Graham, Director of Markets at the London Stock Exchange, said:

“While the second half of 2008 has seen some of the most challenging IPO market conditions many of us can remember, the year has ended on a more positive note with the successful IPO of Resolution, raising £660 million. A stream of substantial further issues has continued right up to the end of the year, underlining our view that fundraising through secondary issues on our equity markets will become especially attractive in the coming year.”

“During the year we continued to outperform the world’s other major exchanges in attracting international IPOs, making very good progress in regions such as Latin America and the Middle East, where we have been less active historically. And we continue to pursue longer term prospects with the development of AIM Italia and our joint venture with the Tokyo Stock Exchange. Changes to the listing regime and the launch of the Specialist Fund Market have also increased the choice of routes to market for investment entities, and have firmly established our credentials as a leading venue for quoted alternative investment vehicles.”

73 IPOs were conducted on the Main Market, Specialist Fund Market, Professional Securities Market and AIM during the year, raising £7.2 billion in total. The Exchange confirmed its position as the world’s most international capital market, attracting 25 international IPOs, raising £3.5 billion between them. This compared with only 13 international IPOs on the New York Stock Exchange and Nasdaq combined.

2008 EQUITY MARKET HIGHLIGHTS

Middle East

The Exchange had a very good year in the Middle East, helping eight companies from the region to raise a combined £1.5 billion on joining the Exchange’s markets. The companies included three from Kuwait and two from Qatar, including the Exchange’s first ever IPOs from those countries, as well as one each from Dubai, Egypt and Bahrain. In addition, the world’s first ETF to offer access to Kuwait, the Lyxor ETF Kuwait (FTSE Coast Kuwait 40) was admitted to trading on the London Stock Exchange’s Main Market on 29 July.

Russia and Eastern Europe

On 22 April, the number of companies from Russia and the CIS quoted on the London Stock Exchange’s markets reached 100 when Magnit complemented its existing listings on RTS and Micex with a GDR issue on the London Stock Exchange’s Main Market which raised $239 million.

Also in May, New World Resources, a coal producer operating in the Czech Republic and Central Europe, raised £1.3 billion on the Main Market.

Latin America

On 14 May silver miner Fresnillo became the first company from Mexico to join the London Stock Exchange’s markets when it was admitted to trading on the Main Market, raising £913.3 million.

India

KSK Emerging India Energy Fund joined AIM on 10 June, raising £101.0 million. It was one of the largest AIM floats of the year. KSK was also one of four India-based firms to float on AIM in a four week period, raising approximately £196.1 million between them.

Investment Entities

Da Vinci CIS Private Sector Growth Fund became the first investment entity to join the Specialist Fund Market, the London Stock Exchange’s new market for alternative investment vehicles, raising $110 million on 29 May. The strength of the Exchange’s offering for investment entities was underlined by the successful IPO of BH Global Limited, a newly established feeder fund investing in Brevan Howard Global Opportunities Master Fund which commenced unconditional dealing the same day, and raised £533.8 million through a listing on the London Stock Exchange’s Main Market.

During the course of the year, Boussard and Gavaudan, and MW Tops, which had previously floated elsewhere, both took advantage of the updated listing rules for investment entities and joined the Exchange’s Main Market in order to benefit from the liquidity and profile that a listing in London offers.

MAIN MARKET, PSM & AND SFM UK & INTERNATIONAL					AIM UK & INTERNATIONAL
	IPOs	IPO Money raised £m	Further Money Raised £m	Total money Raised £m*	IPOs	IPO money raised £m	Further issues money raised £m	Total money raised £m*
2008	35	6,299	60,438	66,737	38	917	3,214	4,322
2007	87	20,450	9,525	29,995	182	6,262	9,602	16,183
2006	89	20,124	16,161	36,307	278	9,315	5,734	15,678
2005	88	10,674	9,150	19,851	335	5,632	2,481	8,942
2004	52	4,930	8,929	13,903	243	2,412	1,879	4,655
2003	20	3,563	12,799	16,378	66	986	1,000	2,095

*includes non-IPO new issues

- ends -

Statistical notes and references

1. Information in this release is based on the Exchange Group’s management estimates and calculations sourced from publicly available information, including Main Market and Secondary Market fact sheets and Professional Securities Market fact sheets, AIM Market Statistics, Monthly Market reports and the Exchange Group’s and its subsidiaries’ internal market and trading databases.

 

2. Money raised figures for individual IPOs are given in the currency in which the securities were issued, and, where possible are extracted from the companies’ own announcements. For Magnit and BH Global the total money raised figures are extracted from the London Stock Exchange’s own management estimates.

 

         3.   The number of international IPOs on NYSE and Nasdaq was sourced from their respective websites, with all companies incorporated outside the US categorised as ‘international’. The numbers are correct to the end of December 2008.

4. The statistical tables and other references to ‘international IPOs’ refer only to companies that are incorporated outside the UK. Some companies on the Exchange’s markets are UK incorporated, but are deemed to operate the majority of their business overseas. Such companies are described in this press release as ‘based in’ or ‘from’ the country in which they operate, although they may be counted as UK companies for the purposes of the overall statistics.

For further information, please contact:

Catherine Mattison Press Office +44 (0)20 7797 1222

newsroom@londonstockexchange.com

About London Stock Exchange Group:

London Stock Exchange Group is Europe's leading diversified exchange business. It operates Europe's largest and most liquid equity market, holds the number one position in trading ETFs and securitised derivatives, and through its interest in MTS, is the leading platform for the trading of fixed income products.

The London Stock Exchange itself is the world's most international exchange with nearly 700 overseas companies from over 70 countries on its markets. It has consolidated this position in the last three calendar years, having attracted 218 international companies which raised over £32 billion between them. These figures include international companies on AIM, the London Stock Exchange's growth market, which has grown to become the world's most successful market for small and medium sized enterprises with over 1500 companies at the end of 2008.

Following its merger with Borsa Italiana in 2007, London Stock Exchange Group also now offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis, and a comprehensive range of European bond trading services through MTS.