Company founders, executives, managers and even employees are set to enjoy a bumper year in 2014 as the red hot London IPO market shows no signs of slowing down.

Company founders, executives, managers and even employees are set to enjoy a bumper year for the rest of 2014 as the red hot London IPO market shows no signs of slowing down, the latest data by research firm Capita Asset Services shows.

Already this year £11.6 billion ($18.8 billion) has been raised through 92 IPOs - trumping the 77 companies that floated in 2013. It is anticipated this could reach £18.5 billion by the end of the year – a figure not seen since 2007 and more than twice the £8.3 billion generated by stock market debuts last year.

Proceedings from main market IPOs are expected to hit £11.7 billion - beating the £8.7 billion record for money raised in 2011 - while average sales per AIM listing are set to reach an all-time high.

This is excellent news for wealth managers who will be hot on the heels of the many newly-rich individuals created through floating their companies.
However experts are urging caution as the appetite among investors for IPOs has waned recently.

"The IPO gold rush in the first half of 2014 came hot on the heels of a sharp upturn in share prices, as the stock market soared at the end of 2013. However, despite a strong start, and a surprising summer flurry of flotations, those hoping to come to market in the latter half of 2014 are having to contend with a cocktail of flat markets, weak earnings and poor dividends," said Justin Cooper, chief executive of of Shareholder Solutions, part of Capita Asset Services.

"With a number of IPOs failing to meet expectations, enthusiasm amongst fund managers is lower than at the start of the year, and has allowed them to be more discerning as they approach the offers on the table. Indeed this fear of market saturation recently led to several companies, including Hungarian budget airline Wizz Air, to withdraw from the field," he added.

But it is not all doom and gloom.

"The economy is strong, and continuing to strengthen, and there’s still a steady stream of private owners looking to exit their business. Rumours resound about a potential listings of challenger bank Aldermore and telecoms giant EE among others, joining a healthy pipeline of companies gearing up to make themselves available to UK shareholders," Cooper continued.

Data shows the IPO charge so far this year has been led by consumer companies. In total 32 companies - one in every three - floating across the UK markets has been in consumer goods and consumer services with 13 of these being general retailers.

Furthermore 57 per cent of all the IPO money raised so far in 2014 has come to these consumer industries - a total of £6.6 billion in the year to August.

The flotation of AA in June for £1.35 billion was the largest in the period, followed closely by two international main market flotations for B&M European Value Retail.

On the UK main market, Saga, Pets at Home, Poundland, and Zoopla have helped bring the total figure raised by homegrown consumer companies to £4 billion.

And there is more to come. In the wake of TSB’s June IPO, Virgin Money is said to be gearing up for a £2 billion flotation this year. Other companies that could launch IPOs in the coming months include luxury shoemaker Jimmy Choo and breakdown service RAC.