Investors expect a steady UK market for initial public offerings (IPOs) in the next 12 months despite the political and economic headwinds..
The global research for advisers BDO, which questioned institutional investors investing in UK equities with a combined $10 trillion under management, found 76per cent of respondents expected the number of IPOs on the Alternative Investment Market (AIM) to increase in 2015 or at least match last year, with 77per cent expecting the same outlook for the main market.
It found 33per cent citing the UK as an attractive country for equity investment, only marginally behind China (at 34per cent) and Germany and Japan (joint second at 37per cent). The US was voted top at 48per cent.
Neil McGill, corporate finance director with BDO in Scotland said: "Despite all the uncertainty, global investors continue to rank the UK as a key place to do business. This positive sentiment is particularly welcome given the number of floats that failed to make it to the market last year."
A lack of UK bank funding was identified by 71per cent as the overwhelming reason for an IPO. Investors were most attracted to technology companies (51 per cent) followed by consumer goods (36per cent), financials (33per cent) and healthcare (30per cent).
Three-quarters of investors agreed that small and mid-cap companies are the key to future economic growth in the UK, but 67per cent cited large companies (£300m-plus) as the more attractive investments over the next 12 months.
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