At 2009 levels the initial public offering in the UK

Initial public offerings in the UK have started at a slower pace since the global financial crisis, as volatile markets and poor stock market performance have dampened investors’ appetite.

IPOs in the UK stood at around $ 530 million this year, the worst first quarter since 2009, according to data compiled by Bloomberg. Only two bids in London, both from special purpose acquisition company (SPAC), have raised more than $ 50 million in 2022.

In addition to worries about a spike in inflation, rising interest rates and Russia’s invasion of Ukraine, low performance following the London-based public offering has weighed on demand. Deliveroo lost 71% of its value in its first year of trading, with Alphawave IP Group, Oxford Nanopore Technologies, Petershill Partners and Bridgepoint Group also in dire straits.

“The all-year IPO market in the UK is closed at the moment, which is really rare,” said Andrew Peck, co-head of equity sales at Investec. “Right now, the right price in the eyes of the market is clearly too low for those who want to potentially sell a high quality asset.”

Several British companies are considering going public in the US stock market in search of more funding and higher valuations, including the money transfer company Zepz. SoftBank Group has stated that it wants to introduce its chip maker Arm in New York. Acquisition company CVC Capital Partners is said to be considering a public offering in Amsterdam, in parallel with London.

While other European countries have seen major IPOs this year, such as Norwegian oil company Var Energi and Italian microelectronics company Technoprobe, London has only seen long delays in major registrations by law firm Mischon de Reya and Olam International’s food arm.

These issuer companies are still targeting public subscriptions at a later date, while others, such as soda maker WE Soda and Blue Owl Capital’s Dyal Capital Partners, are said to be working on major IPOs in the UK this year.