UK IPO Market Revival Begins

Concerns the global IPO market is over hyped are unfounded - an acceleration in flotations is typical of the later stages of a bull market and will continue in the UK

Fidelity International 25 September, 2014 | 11:15AM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Tom Stevenson, Investment Director at Fidelity Personal Investing, comments on the likely surge in IPOs following the success of Alibaba’s listing.

Bankers who sat on their hands during the referendum campaign are thought to be dusting off a string of initial public offerings (IPOs). The success of the high profile flotation of Alibaba (BABA) in the US last week, raising $25 billion and rising to a 36% premium to the issue price on the first day’s trading, is likely to encourage investment bankers that there is high demand for attractive growth stories.

In the UK, Aldermore was first out the blocks. Aldermore is one of the new breed of ‘challenger’ banks looking to chip away at the dominance of the traditional High Street financial brands. It announced on Monday that it would be issuing £75 million of new shares to help build its business.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alibaba Group Holding Ltd ADR195.98 USD-1.02

About Author

Fidelity International

Fidelity International  

is a global leader in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific. 

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