New entrants into the IPO arena have become scarce
(Picture: CCO/pxhere.com)Is London’s stalled IPO pipeline empty — or merely blocked?
Listings are down a remarkable 95 per cent this year, but one leading City broking adviser tells me there is no shortage of credible businesses queuing up to make their public debut.
But none — or almost none —can quite bring themselves to press the button while investor appetite remains so suppressed.
Yesterday’s worse-than-expected inflation numbers, gloomy warnings from the Bank of England about a possible five-quarter recession, and the conflict in Ukraine means that the economic fog is even denser than usual.
Until investors can see some sign of it lifting and a possible route through to firmer ground then they are likely to sit in their hands.
That means a quiet autumn for London’s IPO advisers though a steady stream of M&A deals will probably be enough to keep most, if not all, in bonuses.
Well below the radar some City professionals are being let go, though the numbers are small, we are far from major shake-out territory — yet.
Even when it comes to the virtually closed IPO market it would not take many green shoots to get things up and running again.
And as ever there are pickings to be had in tough times. City law firms, for example, are said to be recruiting finance specialists as fast as they can in anticipation of the great corporate restructuring opportunities that the recession will bring.
Say what you like about the Square Mile, no one can argue it is not adaptable. In due course London’s IPO market will return — we just don’t know when.
