Companies tend to list on the stock market when conditions look ripe for a healthy reception from investors so as to get a deal away at the best price.
After a fallow period for IPOs (initial public offerings) in 2022/23, activity appears to be gathering pace buoyed by the FTSE 100 and FTSE All-Share notching up new all-time highs in recent weeks.
In an unusual turn of events, London could benefit from US-China trade tensions after Chinese fashion group Shein was reported to be accelerating plans for a UK listing after receiving pushback from US and Chinese regulators.
In 2023 Shein was valued at $66 billion (£52.6 billion) according to a Reuters source.
A London listing would be subject to Beijing’s approval after new listing rules were introduced for Chinese firms going public offshore, including clearance from the Cyberspace Administration of China.
A source told Reuters the regulator was conducting a cybersecurity review of Shein’s data handling and sharing practices.
Shein is such a big name in the retail space it could attract other companies to consider listing in London, argues AJ Bell investment analyst Dan Coatsworth.
‘The key negative is that Shein comes with more baggage than a celebrity takes on holiday. Questions continue to be asked about its corporate governance standards, working conditions, supply chain and accusations of intellectual property theft,’ cautions Coatsworth.
Technology company Raspberry Pi is teeing up a £500 million London float which would be a welcome addition after seeing so many technology firms exit in recent years.
Meanwhile, the first REIT (real estate investment trust) IPO this year, Special Opportunities REIT, is due to go live on 20 May.
The seven IPOs which have listed in 2024 have so far shown a clean pair of heals to the market average, gaining 40% compared with 8% for the FTSE All-Share.
Leading the pack is low-sodium salt maker MicroSalt (SALT:AIM) whose shares have more than doubled since debuting on 2 February at 43p per share as investors recognise its potential to disrupt the global food industry.
Holding the wooden spoon is Kazakh airline Air Astana (AIRA) which is down by a tenth after failing to ignite much enthusiasm from investors.
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author of the article (Martin Gamble) and the editor (Ian Conway) own shares in AJ Bell.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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