LONDON, April 4 (Xinhua) -- The first quarter saw 24 IPOs raising funds of 6.5 billion U.S. dollors, the highest in 20 years in London IPO market, said an EY report released on Friday.
The retail sector accounted for the largest share of activity, with eight IPOs (Initial Public Offering) raising cumulative funds of 4 billion dollars, accounting for 60 percent of total funds raised, both in the Main Market and Alternative Investment Market, according to the London-headquartered accounting firm Ernst & Young (known as EY).
"What we have seen over the last quarter is an improving economic landscape, consumers who are feeling increasingly confident and buoyant capital markets. These elements, coming together at the same time, are leading to a significant surge in retailers who are looking to take advantage of these favourable conditions," said David Vaughan, EY's IPO leader for UK & Ireland.
"These IPOs have predominantly been low-cost retailers and/or those with a strong online presence and growth strategy. The drivers for this increase in retail IPO activity include the shift in consumer purchasing patterns towards online vendors and the increased demand for value-based retailers which has been established in the preceding challenging economic environment," he added.