In its recent earnings report, Close Brothers Group Plc attributed to the increase in IPO activity in the UK as the reason why its securities business is booming.
Chief Executive Preben Prebensen told Reuters, "In August, market volumes across the board in equities on the London Stock Exchange were up 10 percent and AIM market volumes were up 24 percent. We are very well positioned to capitalise on the opportunity which have been there in August and September."
AIM is the most successful growth market globally. A sub-market of the London bourse, it allows smaller to float shares with a more flexible regulatory system. The spike in AIM volume was because of the UK's government plan to drive economic recovery in August. People were allowed to invest in small companies while avoiding paying taxes.
Close Brothers' Winterflood and Seydler, two of its divisions in its securities unit, saw its adjusted operating profit climbed 5% to GBP25.7 or USD41.2 million this year ended July 31.
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