Deloitte: £38 billion raised in ‘follow-on’ issues as equity markets react to a tumultuous year


- This year 295 secondary offerings raised £38 billion to 4 December 2020 versus £22 billion in 2019;

- There were 212 secondary offerings for the same period (1 Jan 2019 – 4 Dec 2019)..

New research from Deloitte suggests that UK capital markets have focused on ‘follow-on’ issues, raising additional equity finance from investors or selling existing shares in listed companies, amounting to £38 billion so far this year. Corporates have needed to shore up balance sheets to weather the COVID-19 storm, while conditions to launch IPOs have remained difficult for a significant part of the year.

Follow-on activity of £18.5 billion in the second quarter of 2020 alone was around 75%-80% of the previous two full years and, as of 4 December, YTD 2020 has seen roughly 60% greater follow-on deal value than each of 2018 and 2019.

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