Capital Economy, Business and Finance
Rachel Reeves hailed the IPO of Canal+ on the London Stock Exchange this week as a “vote of confidence” in UK capital markets. But when the media firm behind the Paddington Bear film franchise debuted on Monday its shares tumbled nearly 20 per cent, fetching a valuation of around £2.3 billion.
It tops off a brutal year for the City. Ashtead this month became the latest firm to move its listing to the US, bringing the number of exits to near 90.
But London’s bankers might take solace that the IPO drought is global too. US floatations are lagging 2017 levels despite a recent pick up in activity.
Across markets the decline in IPOs is often linked to a common theme: the rise of private finance. Some of the biggest companies globally – SpaceX and Databricks, for example – are proof that you don’t need to go public to access large-scale liquidity.
