Welcome to Computershare's end of year review. Bringing you highlights from the IPO market, what the future holds and our current successes.
Europe remains the second most active IPO market with continued growth year on year. London remains one the busiest exchanges having hosted 50 IPO deals so far in 2017, of which we were appointed in 34 deals.
"We undertook our IPO in April and our experience through each step in the process was faultless. From the initial planning phase through to implementation, Computershare’s support and guidance created an easy transition to the public listing. Their helpful and insightful advice and professionalism was fundamental when delivering our General Meeting in June and again provided support and pertinent knowledge where warranted."
“The formation of Janus Henderson offers compelling value creation to our investors but there’s no doubt that the merger was complex. By partnering with Computershare, we were able to plan and execute all the necessary legal and regulatory steps precisely and effectively, meeting the needs of shareholders in all jurisdictions.”
In addition to this, the Corporate Actions Team managed the highly complex Liability Management Exercise undertaken by The Co-operative Bank plc. We handled voting in respect of four different company meetings on one day, redemption and repayment of £200m loan notes and took in investment from market participants in satisfaction of the UK Regulatory authorities’ ongoing capital requirements.
We were also delighted to pick up three industry awards this year, which is a testament to our commitment to lead our industry:
State of the market
Although the last few weeks of 2017 have seen a number of potential new UK listings being postponed, it is anticipated that 2017 will have been the busiest year globally for IPOs since the financial crisis of 2007. The number of IPOs could reach approximately 1,700 and might raise as much as $200bn (US dollars).
Europe remains the second most active IPO market with continued growth year on year. London remains one the busiest exchanges having hosted 50 IPO deals so far in 2017, of which we were appointed in 34 deals.
Number of IPOs per region for 2017
| Region | Q1 | Q2 | Q3 | Total | Percentage (%) |
|---|---|---|---|---|---|
| Americas | 34 | 65 | 43 | 142 | 12.90 |
| Asia Pacific | 250 | 218 | 213 | 681 | 61.85 |
EMEIA (including UK) | 97 | 108 | 73 | 278 | 25.25 |
| | | | | 1101 | |
With our global footprint, we are continuing to be the leading expert in cross-border solutions. At the end of Q3 2017, there were 12 cross-border deals involving companies listing into the UK with us supplying expertise and registry services for 75% of these.
The real estate and financial services sectors have dominated the IPO market in the UK, continuing the country's presence as a global financial centre. The advantage of a stable and established regulatory regime and the strong performance of the FTSE indices against the weakened pound continue to entice international investors.
The real estate and financial services sectors have dominated the IPO market in the UK, continuing the country's presence as a global financial centre. The advantage of a stable and established regulatory regime and the strong performance of the FTSE indices against the weakened pound continue to entice international investors.
Future of the market
While proposed reforms championed by the Financial Conduct Authority (FCA) aimed to make it easier for foreign state-owned companies to list their securities on the UK market, they are likely to come to a head within 2018 before Saudi Aramco make their decision. Further reforms aimed at restoring the importance of a prospectus and enhancing conduct standards will come into force from 1 January which is aimed at improving the UK's IPO process.
The UK is unlikely to see an entire recovery of the IPO market until is there long-term stability with the pound and the level of certainty and clarity on terms and process of the UK's exit from the European Union is known. That being said, the IPO pipeline is looking strong for the Alternative Investment Market (AIM) and other smaller London main market listings. With global IPOs still seeking a listing in London, this should be taken as a sign of confidence regardless of the perceived political instability.
The UK is unlikely to see an entire recovery of the IPO market until is there long-term stability with the pound and the level of certainty and clarity on terms and process of the UK's exit from the European Union is known. That being said, the IPO pipeline is looking strong for the Alternative Investment Market (AIM) and other smaller London main market listings. With global IPOs still seeking a listing in London, this should be taken as a sign of confidence regardless of the perceived political instability.
Computershare wins and awards
We have supported 34 UK IPOs so far this year, providing assistance to both large and small companies alike.During the last 12 months, we have aided in bringing companies to market including Allied Irish Banks plc, Jackpotjoy plc, Ten Entertainment Group plc and Greencoat Renewables plc who, having raised $311m, were one of the largest IPOs to list on AIM during Q3 2017.
Ten Entertainment Group plc
Led by our unique Global Capital Markets team in Corporate Actions, we successfully managed and completed the complex cross-border merger between Henderson Group and Janus Capital Group – one of the most prominent and complex Corporate Actions of recent years. We are now managing ongoing registry services to the merged Group across four jurisdictions (USA, UK, Australia and Jersey).
Janus Henderson Group plc
We also performed Corporate Action duties in respect of the Bank of Ireland restructure and the sell-off by the Irish Government of their €3.8bn stake in the €12bn IPO of Allied Irish Banks.
In addition to this, the Corporate Actions Team managed the highly complex Liability Management Exercise undertaken by The Co-operative Bank plc. We handled voting in respect of four different company meetings on one day, redemption and repayment of £200m loan notes and took in investment from market participants in satisfaction of the UK Regulatory authorities’ ongoing capital requirements.
We were also delighted to pick up three industry awards this year, which is a testament to our commitment to lead our industry:
Ranked 'the UK's leading Registrar' by the Capital Analytics survey 2017
'Best Registrar' at the Investment and Wealth Management Awards 2017
'Administration Team of the Year' at the 2017 Jersey ICSA Awards
Get in touch
If you have any questions or would like to discuss a corporate transaction, we would be happy to hear from you.