After the Love Has Gone - Hardman & Co
Post-IPO liquidity – how bad is it, does it matter and what can companies do about it? We have analysed three years of LSE data to answer the question, looking at 206 floats. To get the full benefit of being quoted on the capital markets, companies need to engage and understand that the market for investor airtime is very competitive. Engagement can take many forms including working more closely with investor relations advisors.
Some of our findings show:
• That post-IPO liquidity rapidly drains away
• New £500-£1,000m floats see huge turnover in month one, but, thereafter, trade less than existing companies…
• …whilst AIM floats trade less to start with
• Surprisingly, there is almost no correlation between the size of an IPO and the % traded in the subsequent 12 months
About Hardman & Co
Hardman & Co is a capital markets research and consultancy business. The company is recognised for research and advice of the highest quality; their services are provided by a large team of highly qualified industry professionals, with extensive experience of working with companies and investors.
Hardman & Co helps businesses to be better understood and valued by every type of investor via company research, investor engagement, capital markets advice.
Published 12 July, 2018