LONDON: A boom in stock market flotations helped boost revenues for the London Stock Exchange Group by a fifth in the first quarter of its financial year, the LSE said yesterday.
Revenues surged by 20 percent to £299.9m ($514m) in the three months to the end of June, compared with a year earlier, LSEG said in a results statement.
The LSEG’s capital markets division posted a particularly strong performance, with revenue up 16 percent, the operator of Britain’s main exchange and Italy’s Borsa Italiana said.
The number of initial public offerings (IPOs) or flotations across its markets more than doubled to 78 from 33 in the same period last year, the group added.
“We have made good progress in the first quarter, delivering a strong financial performance,” said Chief Executive Xavier Rolet in the earnings release. “We have been pleased by the continued resurgence in the IPO market with an increase both in the number of companies joining our markets and the amount of money raised.”
The group’s earnings were also boosted by clearing house unit LCH.Clearnet. LSEG bought a majority holding in 2012. The company added that it was preparing a prospectus for a rights issue to help fund its proposed $2.7bn acquisition of US asset manager Russell.
Earlier this year, in June, the LSEG agreed to purchase Russell in order to diversify and grow its business in the US. AFP
