UK Economy Shows Signs of Recovery with Spate of IPO’s Expected in 2013

The UK economy is showing signs of recovery as evidenced by the recent growth in the demand for limited company contractors, particularly in London. The environment of low interest rates has resulted in companies and savers having few options available to generate a reasonable return on their investment. This in turn has led to a rapid rise in the stockmarket as equities are seen by many as a safe haven for investors.

The current environment has led to increased optimism in the stockmarket. Companies in turn have built up large cash reserves whilst waiting for suitable investment opportunities. This does not just apply to large corporates. Limited company contractors find themselves in a similar position with significant surplus cash deposits awaiting a suitable opportunity for investment.

A number of high profile IPO’s are anticipated in the final quarter of 2013. The Royal Mail is expected to announce its flotation next week with the government planning to sell a 60% stake in the business valued at £3.3 billion. Other flotations in the news include Countrywide, Crest Nicholson, Rightster and Zoopla.

The flotation of Foxtons, the estate agent, was particularly successful with its IPO being oversubscribed by approximately 10 times. Outside of the UK, Twitter has announced its much publicised IPO with the social media company looking to raise $1 billion in its public share sale.

This is a positive time to invest in a flotation. Contractors with spare cash in their personal accounts may be interested in investing through their ISA. The UK government have recently announced that individuals can invest in AIM listed companies through their ISA.