London's capital raising figures are being mainly supported by the cryptocurrency sector

The UK's capital markets have had a quiet start to the year, according to brokers, with total equity raised standing at just £810m in July – a decrease of over 40% compared to the same month last year. This trend, however, might be changing, as recent deals by FTSE 250 members Coats and Hammerson could signal a market revival.

Notably, the seventh-biggest deal by value was by a firm that turned over just £176,000 between January and April – the Smarter Web Company, which raised funds to buy Bitcoin. This shift in deals by FTSE 250 members could indicate a potential market revival, according to Steven Fine, of Peel Hunt.

Coats raised funds to buy the US firm OrthoLite for £570m, and Hammerson's deal size is yet to be disclosed. These transactions, along with other significant capital raisings expected in the second half of the year, such as BayWa AG's planned two-tranche capital increase, which aims to raise 125 Mio. Euro, suggest a more active market in the coming months.

Steven Fine mentioned that there has been a bit of a shift, citing these recent deals by FTSE 250 members as examples. He also stated that a lack of long-term supportive shareholders has been a significant factor in the poor showing of the market. Renewed shareholder confidence in listed firms' growth strategies is key to a market revival, according to Fine.

However, the exact timeline for the market revival is uncertain, with Fine predicting it could be in the second half of the second half. Brokers' expectations for a market revival are now more focused on 2026, as stated in the latest Investec report.

It's worth noting that the number of transactions is down by a third at 63, with Smarter Web Company's Bitcoin buying activity being one of the factors contributing to the lower number. This number, however, is lower once you strip out other small-caps that have also been involved in Bitcoin buying.

In the latest podcast by Peel Hunt, Fine mentioned that there has been a bit of a shift, citing recent deals by FTSE 250 members Coats and Hammerson as examples. He also emphasised the importance of having long-term supportive shareholders, using the six words – "backed by long-term supportive shareholders" – to describe the ideal scenario for a market revival.

As the year progresses, it will be interesting to see if the UK capital markets continue to show signs of revival, with brokers expecting everything to pick up in the second half of the year.

London's capital raising figures are being mainly supported by the cryptocurrency sector