IPO market: not as healthy as it looks

On the face of it, the initial public offering (IPO) market looks healthy – 659 firms have listed on the LSE in the last two years. But is it really?

On the face of it, the initial public offering (IPO) market looks healthy 659 firms have listed on the LSE in the last two years. But is it really?

The problem is that few of these listings have been in what the market considers quality' firms. Of these 659, 538 were listed on Aim and many have been small financial firms or volatile exploration companies. Worse, of the many listed on Aim since the beginning of 2004, only 27% have outperformed a similarly structured basket of stocks listed on the main exchange, says Friedel Rother on Reuters. So what's going on?

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Annunziata Rees-Mogg

Annunziata was a deputy editor at MoneyWeek, covering financial markets, politics, economics and comment pieces. She then went on to the Daily Telegraph as a lead writer where she wrote a column on young women’s financial issues. She was briefly a member of the European Parliament for the East Midlands region in the UK as part of the Conservative Party.  Annunziata continues to write  as a freelance journalist.