REVIEW OF AIM AND MAIN MARKETS
SIX MONTHS TO JUNE 2020
UK CAPITAL
MARKETS INSIGHTS
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The BDO UK Capital Market Insights report analyses AIM and Main Market activity on a quarterly basis, including transaction activity, sector trends, significant deals and technical updates.
The AIM and Main Market indices recovered to 80% and 90% of their respective pre-COVID-19 levels, after losing over 35% in March 2020
IPOs were subdued, but H1-20 saw further issues top £17bn - a five year high - as companies shored up their balance sheets and investors supported their existing investments
The retail sector drove fundraising on both markets as investors sought to support ailing retailers
Traditionally the largest drivers of fundraising activity, the funds, real estate and natural resources sectors were quiet in H1-20.
Introduction
key facts and figures: H1-20
29 IPOs
MM at 5 year low
Retail drives fundraising
£4.6bn
£27bn
of further issues
of
pre-COVID-19 levels
Indices recover to
BDO
most active reporting accountant 2018 to 2020
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40%
23%
10%
2%
45%
25%
5%
3%
41%
21%
10%
2%
37%
28%
11%
5%
£16bn
£16bn
£12bn
£14bn
£10bn
£8bn
£6bn
£4bn
£2bn
300
250
200
150
100
50
-
Q1-18
Q2-18
Q3-18
Q4-18
Q1-19
Q2-19
Q3-19
Q4-19
Q1-20
Q2-20
Total Transaction Volume
Retail
Technology & Media
Financial services (general)
Healthcare & pharma
Leisure & hospitality
Financial services (funds)
Real estate & REITs
Natural resources
Other
118
234
173
211
161
217
155
181
167
245
£3.0bn
£2.0bn
£2.5bn
£1.5bn
£1.0bn
£0.5bn
£16bn
700
600
500
400
300
200
100
-
Q1-18
Q2-18
Q3-18
Q4-18
Q1-19
Q2-19
Q3-19
Q4-19
Q1-20
Q2-20
Total Transaction Volume
Retail
Technology & Media
Financial services (general)
Healthcare & pharma
Leisure & hospitality
Financial services (funds)
Real estate & REITs
Natural resources
Other
462
488
374
405
370
415
356
415
355
466
All organizations
Less than $25 million
$25 million - $75 million
$76 million or more
SECTOR ACTIVITY
NEW VS FURTHER ISSUE
Click on your revenue breakout to see how your organization benchmarks against peers
on AIM
and MM
5 year high
80 - 90%
funds, resources & real estate
62%
Fundraises down
40%
23%
10%
2%
45%
25%
5%
3%
41%
21%
10%
2%
37%
28%
11%
5%
£16bn
£16bn
£12bn
£14bn
£10bn
£8bn
£6bn
£4bn
£2bn
300
250
200
150
100
50
-
Q1-18
Q2-18
Q3-18
Q4-18
Q1-19
Q2-19
Q3-19
Q4-19
Q1-20
Q2-20
New issues transaction number
Total Transaction Volume
New issue total raise
Further issue total raise
118
234
173
211
161
217
155
181
167
245
19
18
17
211
10
18
13
9
11
8
£3.0bn
£2.0bn
£2.5bn
£1.5bn
£1.0bn
£0.5bn
£16bn
700
600
500
400
300
200
100
-
Q1-18
Q2-18
Q3-18
Q4-18
Q1-19
Q2-19
Q3-19
Q4-19
Q1-20
Q2-20
462
488
374
405
370
415
356
415
355
466
New issues transaction number
Total Transaction Volume
New issue total raise
Further issue total raise
All organizations
Less than $25 million
$25 million - $75 million
$76 million or more
SECTOR ACTIVITY
NEW VS FURTHER ISSUES
Click on your revenue breakout to see how your organization benchmarks against peers
01 Main mARKEt INSIGHTS
The Main Market recovered to 80% of its pre COVID-19 level at 30 June 2020
Main market secondary fund raises toped £14bn, the highest level in over five years; the majority of this was post lockdown (March to June 2020)
One quarter (£4bn) of total funds raised reflected investors supporting the ailing retail sector
There were just 19 Main Market IPOs, with the majority (£1.6bn) of the £2bn raised from new issues in H1-20 relating to a GDR listing by China Pacific Insurance (Group).
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.
02 AIM insights
AIM outperformed the Main Market, recovering to 90% of its pre COVID-19 level at 30 June 2020
There were just 10 new issues on AIM in H1-20, with funds raised well down on prior year levels
AIM saw £2.8bn raised across 791 secondary transactions in H1-20
As with the Main Market, retail received the largest share of secondaries (22%, £633m).
Introduction
UK MARKET INSIGHTS: OVERVIEW H1-20
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click to download Previous REPORTS
UK Capital Markets Insights
2020 Q1
AIM Insights
2019 H2
Main Market insights
2019 H2
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
ABOUT UK CAPITAL MARKETS INSIGHTS
This publication has been carefully prepared, but it has been written in general terms and should be seen as containing broad statements only. This publication should not be used or relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained in this publication without obtaining specific professional advice. Please contact BDO LLP to discuss these matters in the context of your particular circumstances. BDO LLP, its partners, employees and agents do not accept or assume any responsibility or duty of care in respect of any use of or reliance on this publication, and will deny any liability for any loss arising from any action taken or not taken or decision made by anyone in reliance on this publication or any part of it. Any use of this publication or reliance on it for any purpose or in any context is therefore at your own risk, without any right of recourse against BDO LLP or any of its partners, employees or agents.
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Copyright © August 2020 BDO LLP. All rights reserved. Published in the UK.
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contact us:
CHRIS SEARLE
Corporate Finance Partner
Transaction Services
IAN COOPER
Corporate Finance Partner
Transaction Services
020 7893 2058
chris.searle@bdo.co.uk
020 7893 2678
ian.cooper@bdo.co.uk
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:
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