UK Capital Markets Insights
22 June 2020
The BDO UK Capital Market Insights report analyses AIM and Main Market activity for the year to April 2020, including the impact of COVID-19 for the period and the implications for coming months
A tale of two halves
The markets looked to be on the road to recovery following the general election with IPO activity ramping up, only to be halted by COVID-19 as indices saw record falls and IPOs went on hold.
Only four new issues were completed across AIM and the Main Market in April 2020, after the FTSE and AIM both saw nearly 40% wiped off share values in March 2020. However, further issues reached the second highest level in over 2 years, as companies sought to bolster their balance sheets, mitigate potential loan covenant challenges or raise funds for strategic purposes to take advantage of opportunities arising from the crisis.
Find out how the lockdown impacted transaction dynamics in April and May and what our expectations are for the rest of 2020.
Download the report
New and further issues by sector
COVID-19 drove a significant change in sector dynamics across both AIM & the Main Market. With activity traditionally dominated by financial services, funds, real estate and natural resources, COVID-19 instead drove significant investment into to ailing sectors like retail, TMT and leisure. Many funds and REITs, conversely, found their share prices heavily discounted to NAV largely restricting them from raising equity.
For an overview of new and further issues by sector and the largest fundraises across AIM the Main Market, download our report.
Recent technical guidance issued by the FCA has helped issuers and investors navigate the wider market challenges for COVID-19-impacted businesses. In our report, we summarise this and include our recommendations for issuers contemplating a transaction in the near future.
2019 H2 Download
2019 H1 Download
2018 H2 Download
2018 H1 Download
About UK Capital Markets Insights
Our quarterly UK Capital Markets Insights publication tracks the performance of the AIM and FTSE markets of the London Stock Exchange. Produced by our capital market team it examines market data to identify key trends and includes our outlook for the coming months, covering:
• The performance of the AIM and Main Market indices
• Key drivers of transactional activity, including new and further issues by sector across the exchanges
• Noteworthy fundraises and market dynamics
• The most active advisors
• Recent technical updates and guidance