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2003 Issues

Spring 2011

The recovery in market sentiment towards the end of last year and during the first dealing days of 2011 has given added life to the London IPO market although companies remain cautious about committing themselves to the expense and effort of listing given the general uncertainty in both domestic and global economies.

Looking back over the past year there have been some outstanding successes for both corporate sellers and investors. The LSE main market listing in March 2010 of fast growing fashion retailer Supergroup was one of the highlights of the IPO scene with the shares steadily rising from the 500p listing price to finish the year at just under 13. Less successful, at least initially, was the much hyped sale of the Waitrose linked online grocery operation of Ocado. Although Ocado has built up a strong retail reputation during the 8 years it has been trading it has yet to report a profit and both analysts and media commentators viewed the flagged offer price of between 200p and 220p as much too high. At the last minute the company and its advisers reduced the sale price to 180p. Despite this reduction, the shares opened at a discount of almost 20p and by early August were still trading at a 15p discount to the placing price. However, sentiment towards Ocado changed quite dramatically towards the end of the year and by early January 2011 the shares had climbed swiftly to 200p, vindicating the original listing price.

 

New Issues Centre
Spring 2010