The IPO market has been very quiet, but a few minnows have now made their way onto the market. Six months after announcing its intention to list, World Chess has finally floated in London, albeit only raising £3 million versus an original target of up to €8 million (c. £7 million). It is also joined on the market today by software firm Fadel.
AJ Bell’s Danni Hewson said: “The pipeline of IPOs looks slim, with investment trust AT85 Global Mid-Market Infrastructure Income having already pushed back its float date to early summer, and there are only a handful of other names which have publicly confirmed plans to list including MicroSalt and Venus Minerals.
“The excuse last autumn for the dearth of IPOs was political uncertainty and volatile market conditions. With markets having moved higher this year and more stability bestowed upon the government, one might have thought more companies would come to market, yet the banking crisis might have put a spanner in the works. Once that calms down, we could feasibly see a resurgence in IPOs.
“The big question, however, is whether companies will want to list in London or try their hand at getting a higher valuation elsewhere in the world if they have operations beyond the UK.”