An IPO that would have been London’s biggest of 2024 fell through today, as Special Opportunities REIT failed to raise the minimum £250 million required to go ahead with the plan.
The real estate investment trust, which aimed to buy cut-price office properties from “motivated sellers” as the sector readjusted to the rise of work from home, had initially planned to raise £500 million. That would have been the largest amount raised in an IPO this year, which has been characterised by a dearth of new listings. By valuation, Special Opportunities was the third-biggest company to float this year, behind Air Astana and Raspberry Pi.
When it announced plans to float, the trust revealed it already had commitments for GoldenTree Asset Management, TR Property Investment Trust and Columbia Threadneedle to invest £104 million.
Special Opportunities would also have been the first Real Estate Investment Trust (REIT) to IPO in London since 2021.
However, today its board said it had failed to raise the minimum £250 million required to go ahead with the float.
They said: “Investors have shown significant support for the company's structure, alignment of interest and recognition of the market opportunity.
“Having considered their options, the Board did not believe it would be in the best interests of investors to reduce the minimum fundraise below £250 million given the nature of the market opportunity and pipeline.
Instead, the trust will continue with its strategy but using money raised on private markets.
The collapse follows a very successful first day as a listed company for Raspberry Pi yesterday. Shares soared by almost 40% soon after opening, bringing the computing business near unicorn status.
Meanwhile, many in the City have pinned hopes of an IPO recovery on Chinese fast-fashion behemoth Shein, which is reportedly considering plans to float in London after efforts to do so in New York fell through. Shein is likely to be valued at around $50 billion, instantly making it one of the biggest companies in London.
