London will enjoy a very strong year for stock market flotations, analysts say, arguing that both Brexit and coronavirus offer firms a unique opportunity to expand.
Various big-name businesses that have seen booming online demand from home-bound customers during Covid-19 lockdowns have revealed eye-catching plans for initial public offerings (IPOs) in recent weeks.
Clarity over Britain’s final departure from the European Union on January 1 acted as a catalyst for many companies to raise funds, according to specialists, while the rollout of Covid-19 vaccines also soothed investor concerns over the deadly pandemic.
So far this year, the celebrated shoemaker Dr. Martens, app-driven meals delivery service Deliveroo and online greetings card seller Moonpig have all outlined plans.
“Looking to the year ahead, we can expect 2021 to be a very strong year for the UK IPO market,” said Scott McCubbin at London-based financial services giant EY.
“An uptick in IPO activity may well intensify the competition for investment, placing greater emphasis on preparing early for IPO and raising profile with investors.—AN