Latham & Watkins’ London capital markets group has suggested on 12 fairness capital raisings for the reason that onset of the COVID-19 pandemic, enabling companies to strengthen their stability sheets, enhance liquidity, and proceed to pursue strategic possibilities throughout a protracted interval of disruption.
The transactions all happened on the principle market on the London Inventory Trade, generated greater than GBP2.5 billion in combination proceeds, and included a variety of family names akin to J D Wetherspoon, Aston Martin and Taylor Wimpey.
“Particular COIVD-19 steering and modifications from regulators and investor teams have enabled issuers to lift an became greater proportion of current share capital, whereas additionally benefitting from the extra working capital flexibility supplied by the FCA,” mentioned Chris Horton, a capital markets associate in Latham’s London workplace. “Issuers and underwriters have gotten more and more artistic to draw funding. Together with retail choices in transactions, which has turn into widespread in current occasions. Equally, we’ve seen rising curiosity in personal investments in public fairness (PIPEs), and just lately suggested on SIG’s capital elevate, the first UK PIPE deal since 2009.”
James Inness, London company associate, added: “Whereas that is an extremely troublesome time for a lot of companies, there is no such thing as a doubt that the fairness markets are functioning very effectively. Issuers are capable of elevate capital rapidly and effectively to fix and strengthen their stability sheets or, in lots of circumstances, spend money on development possibilities and acquisitions. The outlook for fairness markets transactions seems optimistic and we’re seeing a rising pipeline of secondary fund raises, together with to help M&A activity, in addition to renewed curiosity in exploring IPOs.”
Within the US and globally Latham topped capital markets mid-year league tables.