Jump in IPO funds good for private wealth?

Fundraising through initial public offerings (IPOs) increased more than five-fold to over £10 billion in 2010, new figures have revealed, news which could be of interest to private wealth holders with investments in the stock market

The number of IPOs jumped from 22 in 2009 to 89 this year, generating a 573 per cent increase on the amount of money poured into start-ups over the course of the year.

Alternative investment market (AIM) stocks dominated the picture, raising £6.3 billion from 43 share issues.

Tracey Pierce, director of equity primary markets at London Stock Exchange Group, said the figures showed a "rejuvenation in the IPO market during 2010".

She added it showed London has retained its standing as the place to go for companies with global plans.

"We believe that these new floats are just the beginning of a growing, healthy, long-term pipeline of issuers, looking to join our markets," Ms Pierce commented.

This increase in IPO activity comes just two weeks after an article in the Daily Telegraph urged investors to trust the stock market rather than traditional savings accounts.
 ADNFCR-2318-ID-800314713-ADNFCR