Market for new issues collapses
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE NEW issues market almost halved in value during the year, robbing many small companies of the chance to go public and raise capital, according to accountancy firm KPMG, writes Clifford German.
There were only 68 new issues in the whole of 1998, raising less than pounds 3.9bn between them. This compared with 100 deals raising pounds 6.7bn in 1997 and 218 deals raising pounds 10bn in 1994.
The level of activity continued to decline into the fourth quarter, when there were only 14 deals, raising pounds 147m.
"The new issues market virtually closed down at the end of July - after the sharp fall in the stock market - and there is no hint of an upturn on the horizon," said Neil Austin, head of new issues at KPMG corporate finance yesterday.
The desperate position of the new issues market, which also affects smaller quoted companies looking to raise more money through rights issues, is forcing smaller companies to resort to private equity or bank loans.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments