The Hill Report – a plan to revitalise the UK capital markets landscape
Despite the pandemic and uncertainty around the outcome of the US election, the volume of IPOs in the US market more than doubled in 2020, while the number of IPOs on the London market also increased but by a less impressive margin. London was still the dominant market in Europe with approximately 36.1% of capital raised in European IPOs in 2020 coming from the London market, but significant evidence of a Brexit effect on equity markets appears in the migration of trading in European share trading from London to Amsterdam. Companies looking at potential IPOs have taken notice and Euronext has been actively marketing to them. Non-UK European companies, particularly in the tech sector, considering an IPO in 2021 are in many cases beginning the process keeping options open between New York, London and Amsterdam. Questions are being asked about whether the London markets are attractive enough to technology (including health-tech) and other growth area companies that are contributing to the US IPO boom, and if not, whether there are any changes that may or ought to be implemented for London to remain competitive.
The UK Listing Review, published on 3 March 2021, sets out a number of recommendations designed to revitalise the UK capital markets landscape by, among other things, making the UK a more attractive prospect for companies (especially technology and high-growth companies) that are in the process of deciding where to list and making further fundraising procedures more efficient for companies already listed in the UK. The recommendations aim to refresh the status of the UK market, and UK listed companies, as attractive investment prospects for both institutional and retail investors.
Click here to read the full text of our review of each of the recommendations which could affect existing and prospective issuers as well as investors and advisors.