Despite the COVID-19 pandemic that affected the global economy, the London Stock Exchange (LSE) nevertheless, raised significant new money from Initial Public Offers (IPOs), mergers, and takeovers in the first half of 2020 of which a total £25.1billion were pooled from three deals according to data published BuyShares.co.uk
This record shows the strength and dominance of the LSE which suffered a significant hit in the first half of 2020 during which the number of companies trading on its platform dropped to the lowest level in five years, while their market capitalisation plunged by $953bn amid the coronavirus crisis.
BuyShares.co.uk data shows that the three largest deals on the London Stock Exchange in the first half of the year hit £25.1bn in market capitalisation opening price.
For the period under review, Flutter Entertainment and Stars Group merger tops the list of the most valuable deals in the first half of 2020, with £13.9 billion in market capitalisation at admission to the London Stock Exchange. The two giants officially wrapped out on May 5th, only a few weeks after shareholders of both companies approved the deal.
Flutter Entertainment announced the Stars Group merger last year to expand its reach in the US sports betting and online gaming markets. The deal joined Stars Group’s FanDuel, FOX Bet, and online gaming sites PokerStars and PokerStars Casino with Flutter’s impressive portfolio, including the European sports betting giant, Paddy Power Betfair, into the largest gaming company in the world. Flutter owns 55 percent of the newly merged company with Stars Group retaining the other 45%.
In February, combined Just Eat and Takeaway.com shares start trading with almost £10bn in the market capital opening price, the second-largest deal on the London Stock Exchange in the first half of 2020. The two merged companies said they would use the capital and convertible bond issue for business development, to pay down debts, and for other corporate purposes and potential acquisitions.
Just Eat Takeaway.com chief executive Jitse Groen said: “The listing marks the “beginning of a new era” for the company. The Just Eat Takeaway.com merger provides the scale that is a necessary condition to remain competitive in a globalized environment. Our ambitions, however, reach much further. We intend to lead the sector, which not only means delivering the absolute best product for both consumers and restaurants, but also a dedication to our social responsibility.”
In February, a Manchester-based smart meter company, Calisen, had successfully listed on the London Stock Exchange at a valuation of £1.3bn, the third-largest deal in the first half of the year.
Bert Pijls, Calisen chief executive, said: “Today marks the start of an exciting period for Calisen, with new capital to support our next phase of growth as a listed company on the London Stock Exchange. We are proud to be a major employer in northern England and will continue to play an important role in supporting Britain’s digital energy transformation.”
The company, backed by majority shareholder KKR Evergreen Aggregator, a US buyout group, raised £328.79m by listing on the stock exchange with shares priced at 240p per share.
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