By DAVID BLACK | From

THE UK led the world last year in the number of public flotations, and was No.1 in Europe in capital raised, according to Ernst & Young.

Its Global IPO Survey 2005 showed that the UK raised $6.8 billion (£3.75bn) across 191 transactions, with the main success story in the junior London market, AIM.

According to the survey: "Its combination of speed, market regulation and international outlook make an AIM IPO an attractive alternative to venture-capital or private-equity funding for domestic firms, while, for ambitious foreign companies, it is a stepping-stone to the international stage."

There were also upturns in France, Italy and Germany, with substantial improvements on 2003’s totals. In addition, both Ireland and Spain also did more than $1bn of IPO business.