Firms looking at floats as optimists gain ground

Oct 5 2009 by Peter McCusker, The Journal

Newcastle law firm Muckle played host to Mr Stuttard. Andrew Davison, a partner at Muckle, said: “There has been no appetite for flotations for over a year but there are signs of renewed interest.

“There is now money available on the capital markets to invest the right businesses and the right management teams. There is risk capital available for growth.

Tyneside-based drug development company e-therapeutics was the last company to float on the Alternative Investment Market over two years ago and there are around 15 North East companies on AIM. Companies seeking to list on the AIM market, the baby brother of the FTSE, tend to be smaller companies looking for capital to fuel rapid growth.

North East companies with private equity backers are among those currently seeking a stock market listing.

Chris Stott, associate partner in transaction services at KPMG in Newcastle said: “This could well be an exit route for many private equity firms looking to raise additional capital.”