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Firms raise £615bn during the pandemic… but without stock market

British firms raise £615bn during the pandemic – but without stock market as majority want to avoid an IPO

  • Nine out of ten firms said they had accessed new money during the pandemic
  • Almost a third had drawn Government funds, while nearly half took bank loans
  • More than 56% resorted to private equity funds, according to a survey

British companies raised an estimated £615billion in funds from sources other than the stock market during the pandemic as many firms put off plans to float.

The survey by fintech Globacap of 250 finance directors at medium and large firms found that nine out of ten said they had accessed new money. 

Almost a third, 31.2 per cent, had drawn Government funds, while 48.4 per cent took bank loans and 56.4 per cent resorted to private equity funds.

Pandemic funding: Nearly half of medium and large firms took out bank loans

Some 87 per cent said they wanted to resist launching an IPO for as long as possible despite major floats this year, such as those by Dr Martens and Deliveroo.

Around 80 per cent stated they would prefer to avoid private equity or venture capital.

Globacap said this, ‘suggested that most businesses at a certain level feel they have no choice other than to go public or seek private equity financing’.