Bottom Line: London just needs to wait a bit for lift-off
ON ONE level and after a superficial look at developments, it might seem as if London is in danger of missing out on the impending flood of new issues that are about to hit the financial markets.
Yesterday’s flurry of statements revealed that ISS, the giant services group, is floating in Copenhagen; King.com has chosen the New York Stock Exchange and only Poundland, the discount retailer, is choosing to list in London.
But the superficial view is wrong. This spring is shaping up to be a busy time for the London listings market, with a logjam of companies waiting to use its facilities to raise finance. The scepticism that caused the markets to virtually close three years ago has gone, though it will only take a major case of mis-pricing for the new-found confidence amongst share buyers to be shattered.
The sale of shares in Lloyds Bank will dominate but there will be plenty of other issues to keep the markets busy. King’s plans to list in New York were underway long before the London Stock Exchange changed its rules to accommodate technology companies. There is hope for technology groups floating in London still, with maybe Just Eat the first to try.
ISS might have been part of a UK-listed group if G4S had succeeded with its bid in 2011 but it is a Danish group and its brand recognition there will help support a retail share offering which it probably would not have managed in London.
London’s time in the sun will come. There’s no need to panic.
david.hellier@cityam.com