The resurgence of the IPO market in 2014
a year an average listing outpaced the index by 10.5 percent .
2014 is not following the historic trend . With such a pent up supply of companies to list , the sheer volume of companies coming to market has meant fund managers have been spoiled for choice .
Although the market is a far cry from where we were in 2009 , there is not quite the same golden combination of a bull market and thin supply of issues seen last year which drove very strong initial performance .
That ’ s not to say it won ’ t return to trend over the longer-term , so long as the companies coming to market are reasonably valued and are able to demonstrate their robust business propositions .
‘ Looking at the pipeline of companies considering an IPO , there is still a lot of potential new supply over the next 12 months – and especially so if the FTSE sees a traditional end of year rally ’
Later years Looking at the later years of an IPO , the probability of a company outperforming the wider index inevitably falls , but the gains by those that outperform outweigh the losses .
Two years on from listing , 57 percent of companies see slower growth than the index , however as an average , there is still an outperformance of 7.6 percent
Justin Cooper , CEO of Shareholder Solutions , Capita Asset Services
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