The past year has seen a resurgence of activity in capital markets, including a number of high-profile flotations. This has been viewed as a strong indication of growing confidence in the markets following the recession.

In particular, a number of fashion and retail businesses have chosen to undertake public listings combined with fundraisings on a variety of stock exchanges, both in the UK (on the Main Market and on AIM) and internationally, demonstrating the gradual recovery of a sector which suffered more than most during the global financial crisis.

Examples of fashion and retail companies which have chosen to list in recent months include:

  • Bonmarche, the UK fashion retailer aiming at female over-50s. It floated on Londonfs AIM market via an IPO and placing in November at a price of 200p per share, giving the company a valuation of '200million
  • Conviviality Retail, owner of UK liquor store chain Bargain Booze, which commenced trading on AIM (and also raised funds by way of a placing) in August, and
  • Clairefs Inc, parent company of international accessories chain stores Clairefs Accessories, which announced its intention to float on the New York Stock Exchange in May.

In addition, Obuv Rossi, the shoe retailer, is considering floating on the Moscow Stock Exchange.

The Bonmarché IPO is particularly notable as a significant turnaround for the business: it was bought out of administration only last year by Sun European Partners from its former parent company Peacocks (which maintains its own high street fashion presence in the UK). This is an indicator that not only are retail and the high street fashion market emerging from the downturn, but that, with appropriate backing and management, brands can still position themselves to experience significant growth and recovery and reach a point where they are able to bring themselves to market.

Analysts anticipate that in the coming year fashion, retail and consumer businesses will account for a significant portion of upcoming IPOs, both in the European markets and globally. This is viewed as a sign that the global economy is returning to health. Consumer spending is increasing as a result of more disposable income, which is fundamental to the growth and success of such businesses. The recent and upcoming IPOs will also demonstrate to other fashion and retail companies that accessing funds via public equity is an achievable option for their business By Laura Kichenside and Caroline Grange-Fielder (London) .

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