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Five Graphs to Highlight London’s Equity Capital Markets In 2020

1. Largest year for capital raisings since 2009, with £51.2bn raised through IPOs and Further Offers.

equity capital market activity

London was the most active equity market in Europe in 2020, with 2.7x more transactions (635 IPOs & FOs) than the next most active exchange, and 2.8x more in IPO and FO proceeds (£51.2bn) than the next exchange.

The top 7 deals in 2020 on London Stock Exchange are:

CompanyDeal TypeCapital raised (£m)
Aveva GroupFO2,847
IAGFO2,497
Rolls-RoyceFO2,277
Compass GroupFO1,999
THGIPO1,881
China Pacific Insurance (as part of Shanghai London Stock Connect)IPO1,567
China Yangtze Power (as part of Shanghai London Stock Connect)IPO1,542

2. 2020 saw FTSE AIM All-Share Index hit its highest level since August 2007, with record trading volumes on AIM.

Record number of trades on AIM in 2020

In 2020, AIM continued to drive growth market capital in Europe, accounting for 54% of all IPO and FO capital raised and 1.7x more than the next European Growth Market.

In total, there were 397 deals, raising £485m through IPOs and £5.3bn in FOs.

7 of the largest 10 European growth market deals took place on AIM.

3. Trading of London Stock Exchange equities hit two records

LSE Order book trading turnover 2020

London markets experienced significant volatility due to the outbreak and news of the Covid-19 pandemic.  The resilience of our infrastructure has provided certainty. Markets have been able to function efficiently throughout the crisis.

The International Order Book with international listings such as Russian, South Korean, Indian and  Shanghai London Stock Connect securities increased 17% in turnover and reached $1bn daily trading record in March.

4. Exchange Trade Product trading turnover grew by 50% YoY  

Exchange Trade Product trading turnover grew by 50% YoY

195 new ETPs, including 61 new ESG ETFs, were listed in 2020. There are now 1304 ETFs (available as 1,891 lines through multi-currency offerings) and 299 ETCs/ETNs (available as 421 lines) on our markets

ETP order book turnover in 2020 was £154.8bn (c. US$210bn) on London Stock Exchange, growing 50% YoY. Average daily value traded was £609m.

5. Turquoise, a Pan-European Trading  Platform, majority owned by London Stock Exchange, saw surged volumes in mid-point block trading.

Turquoise, a Pan-European Trading  Platform

Turquoise trades over 4,000 securities from 18 European countries. Turquoise Plato™ includes order books that allow participates to trade at the mid-point of the primary markets’ best bid offer prices, saving half of the spread at the point of execution. 9 out of 10 highest daily turnover in Turquoise Plato Block Discovery™ happened in 2020.

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