Professional services firm Ernst & Young has predicted a resurgence of initial public offerings over the course of 2017.
According to the firm, the unexpected European Union result compounded the slow first half of the year in the UK, and saw many businesses put listing plans on hold.
The first nine months of 2016 saw a total of 46 IPOs on the London Main Market and AIM, the London Stock Exchange.
This raised a total of £3.1bn, a 47 per cent decrease in proceeds and 11 per cent in volume compared with the same period in 2015.
Ernst & Young added the summer months are traditionally quiet for IPO listings, with six IPOs listed in the third quarter this year, the same number as last year, but capital raised was up 18 per cent.
Newly listed stocks in 2016 have outperformed veteran assets, which are currently trading an average of 32 per cent above list price, with only one stock with a very small negative growth.
According to Ernst & Young, there was only one private equity backed IPO.
The firm stated that looking ahead, higher valuations and lower volatility could see IPO activity pick up, and activity in 2017 could surpass that of 2015.
Scott McCubbin, Ernst & Young's IPO leader for UK & Ireland, said: “Following the markets’ strong recovery and the added interest of US and Asian investors looking to take advantage of the weak pound, we now expect a number of firms to dust off their IPO plans.
“It will be the specific characteristics of the individual companies that drive investor interest. Companies in the retail, technology, and media and entertainment sectors are likely to be the most attractive, mirroring previous quarters. We could well see a resurgence of IPOs in 2017, as firms look to take advantage of global investor interest in the UK market.”
