Mitchinson added: “Some companies have been in the eye of the storm and have needed to raise money to get through this difficult period – like Hyve or De La Rue. Others like Ocado have done raises to allow them to put their foot on the gas. So there’s been some shoring up of the balance sheet and some more front footed placings.”
Russ Mould, investment director at AJ Bell, said: “It is pleasing to see UK firms such as Numis and Barclays in the thick of the action. Barclays has taken a lot of heat for the performance of its investment bank, so this run of deal-making may help to silence a few critics. Numis continues to reap rewards for its strong research and the patience with which it has built up a roster of experienced analysts and bankers who know their stuff and what their clients need.
“After years of companies handing back more cash to shareholders than they raised, as buybacks and dividends outstripped flotations and placings, it is encouraging to see that the UK stock market can still help firms raise money quickly and cost-effectively so they can invest in assets, ideas and staff to keep the economy going.”
The cascade of share placings has sparked concerns in the City over banks’ tactics. The Financial Conduct Authority said it had heard reports that big banks were using their position as lenders to companies to give them lucrative work on equity raisings over smaller broking houses. The watchdog wrote to CEOs in April to warn them over the practice.
