The Alternative Investment Market (AIM) had its strongest first quarter for 20 years for initial public offerings (IPOs), as AIM and the main market welcomed £3.9 billion in new listings.

EY’s latest IPO Eye shows that 16 businesses listed on AIM, raising a cool £1.3 billion, during the first three months of the year, including high profile listings such as Boohoo.com and Koovs. In the same quarter last year there were five admissions raising just £20 million between them.

On the main market there were eight new businesses raising total funds of £2.7 billion. Five of these were from the retail sector: McColl’s AO World, Pets at Home, Poundland and Lenta, a Russia-based retailer.

David Vaughan, EY’s IPO leader for UK & Ireland, said the figures reflected an improved picture of the economy: “What we have seen over the last quarter is an improving economic landscape, consumers who are feeling increasingly confident and buoyant capital markets.

“These elements, coming together at the same time, are leading to a significant surge in retailers who are looking to take advantage of these favourable conditions.”

He said the IPOs were predominantly low-cost retailers and those with a strong online presence; a fact which hints at changes in consumer preferences. He added that more high-profile IPOs were on the horizon.

“As strong as this quarter has been our pipeline suggests that the next quarter will continue the momentum. There are many businesses who have witnessed the London IPO market revival over the past 12 months and they are now looking to take advantage of these favourable market conditions.

“This appetite doesn’t show any immediate signs of slowing as capital continues to flow into UK equities.”