London stock market bucks IPO drought with rush of follow-on deals

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UK exchange the most active in Europe as investors offload stakes in secondary transactions

Record highs for the FTSE 100 have spurred a flurry of share sales on UK stock markets, even as the number of new listings in London remains subdued. The volume of follow-on transactions, in which investors in listed companies offload significant chunks of their stock, has already reached $11.5bn this year, according to data from the London Stock Exchange Group. That is the fastest start to the year to late May since the boom year of 2021, and includes 110 such follow-on issuances.

A consortium of investors has been gradually offloading billions of pounds worth of shares in LSEG that were acquired as part of the stock exchange’s $27bn purchase of data and trading group Refinitiv in 2021. In the latest deal in mid-May, those investors including the private equity group Blackstone sold a block of shares representing about 3 per cent of the company, or nearly $2bn. The deal offered the shares at 1.

 

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