Market report - June 2006
London Stock Exchange Group PLC
11 July 2006
News Release
11 July 2006
MR60-6.06
IPOS RAISE MORE THAN £10 BILLION DURING FIRST HALF OF THE YEAR
• Number of SETS trades in June up 77 per cent
194 companies raised over £10.4 billion through IPOs on the London Stock
Exchange's markets during the first six months of 2006, a 64 per cent increase
on the £6.4 billion in IPO money raised during the same period last year.
In the six months to the end of June 2006, the Exchange attracted 50
international IPOs to the Main Market and AIM, drawing companies from 15
different countries. This total included seven international companies on the
Main Market, raising £2.7 billion between them, and 43 international companies
on AIM, raising £1.8 billion between them. By comparison, during the period
from January to May this year, there were 15 international IPOs on the New York
Stock Exchange and Nasdaq combined.
Overall, during the first half of this year there were 40 IPOs on the Main
Market, raising £5.2 billion, and 151 IPOs on AIM, raising £4.7 billion.
This total included four IPOs on the Main Market in June 2006, raising £171.6
million, and 21 IPOs on AIM which raised £481.4 million, including eight IPOs
from international companies.
Trading on the London Stock Exchange also continued to show very strong growth
in June. There were 7.3 million SETS trades during the month, up 77 per cent on
June 2005, while the value traded on SETS increased 68 per cent to £138.2
billion. The average daily number of trades on SETS in June increased to
329,648 while the average daily value traded rose to £6.3 billion.
Included in the SETS figures, SETSmm had an impressive month, with the total
number of trades up 177 per cent on June 2005 to 1.6 million, an average of
70,845 trades per day. The value traded was up 107 per cent to £11.3 billion,
or £513 million daily. The year-on-year growth in SETSmm trading can, in part,
be attributed to the transfer of the remaining 198 quote-only FTSE SmallCap
index securities onto SETSmm. Compared with their trading performance during
June 2005, the last full month before the transfer, SmallCap index stocks have
benefited from a reduction in spreads from 214 to 163 basis points, less than
half the published spread available on other markets.
Also included in the SETS figures, the Exchange's International Order Book (IOB)
had an excellent month with an 183 per cent increase in the number of trades to
69,402, and an increase of 236 per cent in the value traded to £5.6 billion.
The total value of UK equities traded during the month was £276.5 billion, up 42
per cent on June 2005, while the total number of trades increased 59 per cent to
8.1 million.
Covered warrants and structured products had another strong month with 7,714
trades during the month, up 89 per cent on June 2005, and a total value traded
of £80.5 million, an increase of 299 per cent. The number of ETF trades during
the month was up 92 per cent on the same month last year to 20,002, while the
value traded increased 161 per cent to £1.6 billion.
RNS, the Exchange's service for the dissemination of company news, issued 5,669
company news and results announcements during June 2006, an increase of 17 per
cent on last year, representing 87 per cent of all company news and results
announcements issued in the UK. The total number of announcements made via RNS
was 15,869, up 21 per cent on June last year.
There were 22 trading days in June 2006, the same number as the previous year.
- ends -
For further information, please contact:
Catherine Mattison Press Office +44 (0)20 7797 1222
newsroom@londonstockexchange.com
Notes to editors:
• About the London Stock Exchange
The London Stock Exchange is the world's premier international equity exchange
and a leading provider of services that facilitate the raising of capital and
the trading of shares.
The London Stock Exchange is the most international equities exchange by trading
in the world and Europe's largest pool of liquidity. By the end of 2005, the
market capitalisation of UK and international companies on the London Stock
Exchange's markets amounted to £4.1 trillion, with £5.2 trillion of equity
business transacted over the year.
The London Stock Exchange is a Recognised Investment Exchange (RIE) under the
Financial Services and Markets Act 2000 and is supervised by the Financial
Services Authority.
Companies considering flotation have a choice of markets:
AIM
AIM is the London Stock Exchange's international market specifically designed
for smaller, growing companies, combining the benefits of a public flotation
with appropriate levels of regulation.
Main Market
The London Stock Exchange's Main Market for established companies seeking
international recognition is one of the world's best known, longest-established
and most liquid markets. It is home to some of the world's largest and most
successful companies, giving them access to one of the deepest pools of capital
in the world.
Professional Securities Market
The Professional Securities Market was established in July 2005, to coincide
with the introduction of the FSA's new Listing Rules. PSM provides a solution
for those issuers seeking to list securities in London without having to
re-state their financial information to IFRS or follow the additional
requirements of an offering to retail investors. Debt securities or depository
receipts of any denomination may be listed on PSM on production of a prospectus
aimed at a wholesale or professional audience.
• IPO
An IPO or Initial Public Offering is when a new company joins one of our markets
and raises capital by issuing shares. This excludes transfers and introductions
(when companies join the market without raising money).
• Indices
Indices are calculated and managed by FTSE Group, a world-leader in the
creation and management of global equity indices. The FTSE Group is jointly
owned by the London Stock Exchange and the Financial Times, but operates as a
wholly autonomous company.
For information about the company or any FTSE indices, please contact
media@ftse.com
• SETS - the electronic order book
It is over eight years since the launch of SETS and the service continues to go
from strength to strength. Overall, the market is benefiting from tighter
spreads and greater liquidity. Usage of SETS continues to grow, as shown by
recent record increases in the number of orders entered, the number of firms
using the order book and order book share of business.
• SETSmm
SETSmm is the Exchange's successful trading service for FTSE 250 and other
leading non order book securities. By combining the best features of the
existing SETS and SEAQ trading services, SETSmm appeals to market users who want
to trade electronically, as well as those customers who use the market making
system.
• Retail Trading Figures
Retail trading figures are available from our website at -
www.londonstockexchange.com/en-gb/products/membershiptrading/retailtradestat
Figures are available from November 2002 to date.
LONDON STOCK EXCHANGE - MONTHLY FACTSHEET FIGURES
2006
June 2006 June 2005
DOMESTIC EQUITY TRADING Month Year to date Month Year to date
Equity Trading Value (£m) 276,502 1,695,275 195,320 1,197,271
Number of Equity Trades 8,050,791 44,068,576 5,058,618 30,362,749
INTERNATIONAL EQUITY TRADING
Equity Trading Value (£m) 229,089 1,691,850 227,126 1,262,839
Number of Equity Trades 1,192,379 9,770,066 1,615,535 7,941,156
ORDER BOOK TRADING
Order Book Value (£m) 138,246 780,232 82,346 475,437
Order Book Trades 7,252,257 37,651,243 4,105,846 24,341,767
June 2006 June 2005
DOMESTIC MARKET CAPITALISATION (£bn) 1,885 1,580
TOTAL NUMBER OF COMPANIES 3,193 2,994
Main Market UK 1,312 1,412
Main Market International 321 342
of which techMARK 141 152
AIM 1,549 1,240
Professional Securities Market (Equity only) 11 -
June 2006 June 2005
MONEY RAISED (£m) Month Year to date Month Year to date
Equity Money Raised:
New issues: Main Market UK 172 2,578 747 2,032
New issues: Main Market International - 2,681 1,199 2,545
New issues: AIM 597 5,007 640 2,134
Further issues: Main Market UK 1,292 4,586 1,105 3,708
Further issues: Main Market 3 665 75 218
International
Further issues: AIM 665 3,542 218 978
PSM (new & further, UK & International) - 527 - -
COMPANIES ADMITTED 82 336
42 286
Debt Money Raised (£m)
Main Market UK 13,648 68,849 16,435 75,866
Main Market International 11,686 102,994 21,787 63,956
PSM ( PSM (UK & International) 1,064 8,356 - -
This information is provided by RNS
The company news service from the London Stock Exchange
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