Market Tracker weekly bulletin – 5th October 2018

Market Tracker weekly bulletin – 5th October 2018

A round up of key developments in corporate transactions covered by Lexis®PSL Market Tracker this week.

Transactions

Equity Capital Markets

Recent big-ticket IPOs struggle on admission

Aston Martin and Funding Circle both launched their highly anticipated, high-value IPOs over the last week. Despite enthusiastic valuations from both companies in their prospectuses, early trading indicated a subdued investor appetite.

Aston Martin began conditional dealings on the Main Market of the London Stock Exchange on 3 October, its opening share price of £19 per share at the lower end of the initial price range of between £17.50 and £22.50 per share. Based on its final offer price, the company's market capitalisation on admission was £4.33 billion, which was lower than its expected valuation of £4.54 billion. The share price fell from £19 to a low of £17.75 per share during the first day of dealings. The company closed its first day with shares priced at £18.10 per share and ended its second day at £17.90 per share, valuing it at around £4.12 billion.

The shares are trading on a conditional basis, with unconditional dealings commencing on 8 October. Based on its current performance, it is now unlikely that the company will qualify for inclusion in the FTSE 100 when the index undergoes its quarterly review in December.

Funding Circle was conditionally admitted to trading on the Main Market on 28 September, with an offer price of

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About the author:
Jenisa is Head of Market Tracker, a transaction analysis product that sits within Lexis®PSL Corporate. She has over 13 years of legal publishing experience, with a focus on researching and reporting on trends and developments in the corporate and commercial legal market. Previous roles include content developer for Lexis®PSL, Legal Podcaster at Informa, and Research Editor at Practical Law Company where she specialised in reporting on cross-border corporate and commercial developments from the firm’s New York office.