Initial public offerings (IPOs) on the London Stock Exchange have fallen to their lowest level in 14 years, Bloomberg reported Tuesday, citing compiled data
MOSCOW (Pakistan Point News / Sputnik - 04th April, 2023) Initial public offerings (IPOs) on the London Stock Exchange have fallen to their lowest level in 14 years, Bloomberg reported Tuesday, citing compiled data.
Only three small companies have listed in London this year, raising a combined total of only about $14 million, the lowest since at least 2009, the report said.
At the same time, New York IPOs raised $3.5 billion, the lowest amount since 2016, while exchanges in Europe brought in $2.15 billion, the lowest since 2020, the data showed.
While listings around the world have had a poor start to the year due to fears that rising interest rates are fueling a slowdown in economic growth and problems in the banking sector, London is having a particularly tough time, exacerbated by rising inflation and a lack of appetite from big investors for the troubled economy, the news agency said.
"The UK equity market has typically been seen to lag in terms of valuations. That's driven a bit of negative sentiment around UK listings," Stephanie Niven, portfolio manager at the Ninety One investment company, was quoted as saying by Bloomberg.
UK inflation rose to 10.4% in February from 10.1% in January, according to the Office for National Statistics. In late March, the Bank of England raised interest rates by a quarter of a percentage point to 4.25% and said it was prepared to raise rates further if inflation continued to rise.
