London IPOs Are Slower Than Expected
- Stock market chief Julia Hoggett warned of a deluge of London IPOs.
- However, the reality turned out to be more of a dribble than a wave.
- Changing the rules is unlikely to open the floodgates for London IPOs.
In February, Julia Hoggett, the chief of the London Stock Exchange, forecasted a significant increase in initial public offerings (IPOs) in the UK, urging stakeholders to prepare for a wave of new listings. However, the anticipated surge has not materialized, leading to a disappointing reality for the market. Instead of a robust influx of IPOs, the UK has only witnessed four listings exceeding £30 million, falling short of expectations. The first of these IPOs was the February listing of Kazakhstan's Air Astana, which was primarily a strategic move for BAE Systems, the airline's 49 percent owner, to reduce its stake. This listing has not performed well, with the global depositary receipts now down by 28 percent, reflecting a lack of investor confidence and market enthusiasm. The sluggish performance of the UK IPO market raises questions about the underlying factors contributing to this trend. Analysts suggest that economic uncertainties, regulatory challenges, and a cautious approach from potential issuers may be deterring companies from pursuing public listings. As the year progresses, the outlook for the UK IPO market remains uncertain. Stakeholders are left wondering if the anticipated wave of listings will eventually materialize or if the current trend of minimal activity will continue, leaving the market in a state of stagnation.