GlobalCapital has reported that UK IPOs are effectively on standby until there is some clear indication on the nature of the relationship between the UK and its largest trade partner beyond the end of next week.
UK IPO origination bankers have bemoaned the uncertainty and said that a number of companies considering flotations have delayed their plans.
This is largely because of the large discount investors are likely to demand to take a risk on an untested new stock at a time of Brexit turmoil.
However, despite new IPO issuance being severely damaged by Brexit, other types of equity fundraising has continued, despite of it.
In fact, there has been 115 equity capital markets deals in the UK in 2019, 38.6% of the entire European market as of the end of last week, according to Dealogic.
There has been $10.7bn worth of ECM issuance so far this year, which, while a little inflated by the $3.5bn AstraZeneca block last week, is far above the Netherlands in second place at roughly $3bn.
Because of the huge AstraZeneca deal, issuance volume is now 24.7% above the $8.6bn issued at this stage last year.
The fact that UK companies can still fundraise at a time of pronounced uncertainty shows the strength of UK capital markets, the fortitude of investors and the strong perseverance of the sell-side professionals who have continued to put their heads down and in the words of Theresa May 'gotten on with it'.
They have managed to do this at a time when international equity funds have been pulling capital from the UK on a monthly basis, according to data from Bank of America Merrill Lynh and EPFR Global.
Banks often take a lot of stick, but it is a testament to all involved in UK ECM that they can still persuade shareholders to back equity capital raisings, at the same time as fund managers are pulling capital and the country’s government is flirting with a No Deal Brexit.
Goldman Sachs and Morgan Stanley actually managed to place a $3.5bn block of shares in AstraZeneca during a day bookbuild last Friday, at the same time Theresa May was holding her third meaningful vote on the Brexit deal.
While this delayed the execution of the transaction, the syndicate still got it over the line allowing AstraZeneca to fund a transformational collaboration that could revolutionise cancer treatment.
This kind of activity is why the City is so admired around the world and why London is still seen as one of the most attractive places to list across the globe. Companies will do so again once the Brexit madness has subsided.
Nevertheless, UK MPs should make no mistake that this success is very much despite Brexit and is remarkable given the majority of MPs' abject failure to put aside party interests to come together and compromise in the best interests of the UK.
There are some notable exceptions; the decision by MP Nick Boles to resign from the Conservative Party is the end of a sad attempt to try to encourage a majority for compromise and to remain in the single market.
GlobalCapital has also backed this solution in the past.
Some other admirable MPs have stood up for the UK's interests and the personal threats that many have received for doing so, is an example of the horrifying pressure placed against individuals that do try and do the right thing.
However, as a whole, the UK’s political class has failed disastrously.
MPs should look at how business and the City have overcome the volatility parliament has created and heed its warnings when it telsl them to cast aside the lunacy of leaving the European Union a week on Friday without a deal.