Bigger Is Better in the UK When it Came to Deals and IPOs in 2015

When it comes to IPOs and M&A deals in the U.K., 2015 will be remembered for both its mega-listings and mega-deals
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Bigger really is better these days, at least when it comes to IPOs and M&A deals in the U.K. 2015 will be remembered for both its mega-listings and mega-deals, according to Jasper Lawler, market analyst with CMC Markets, who sees more of the same in 2016. Lawler said the IPO market this year was dominated by very strong performance from just a handful of companies. ‘One of the interesting characteristics for IPOs in the U.K. for 2015 was that it was very heavily concentrated. The amount of value that was created for investors really was just within the best performing two stocks, which was Auto Trader and World Pay,’ explained Lawler. According to data from the London Stock Exchange, as of mid-December, there were 85 IPOs in the UK this year, compared with 137 the prior year. Out of the ten biggest IPOs, Auto Trader and World Pay were the only IPOs to trade significantly above their offering prices. Lawler said that performance will set the trend for 2016. TheStreet's Rhonda Schaffler has details from New York.