Exclusive: London rides wave of floats to snatch Europe listing crown

London has ridden the crest of a wave of companies listing in the capital over the last year, reveals a fresh study shared exclusively with Morning Wire today.

The City muscled out its rivals on the continent to take the crown as Europe’s top listing hotspot, research by consultancy KPMG has found.

The capital breezed past Stockholm and Amsterdam, its two closest rivals in Europe, demonstrating London remains the most attractive destination for firms to go public despite concerns Brexit would dent its attractiveness.

Chancellor Rishi Sunak told Morning Wire: “It’s fantastic to see that the City remains one of the best destinations for firms to go public.”

London listing volumes could rise even further in the coming year after a new listing regime that is designed to attract fast growing tech companies and make the City more competitive on the global finance stage came into effect this month.

The fresh rules will make London “more open, more competitive, more technologically advanced, and more sustainable,” Sunak added.

108 firms came to market in the City over the course of 2021, smashing pre-pandemic levels, underlining the scale of recovery in business confidence from the depths of the Covid-19 crisis.

In 2019, 35 companies listed in the capital, while last year, when the UK was in the teeth of the pandemic, 38 firms launched an initial public offering.

The strong rebound in listings volumes has been driven by investors searching for higher returns amid a record low interest rate.

Newcomers have benefitted “from pent up investor demand built over the Covid-19 period,” said Linda Main, head of UK capital markets advisory at KPMG.

Nearly £14bn was raised from listings in 2021, almost triple the amount raised last year and 140 per cent higher than 2019’s print.

Financial services led float volumes higher, accounting for over a third of total funds raised, KPMG said.

Investors poured into a string of investment firms which floated on the London Stock Exchange this year.

Private equity fund Bridgepoint clocked one of the best listings, raising nearly £800m, supported by investment firm Petershill Partners and broker Peel Hunt.

Takeaway delivery firm Deliveroo drew in the greatest amount of investor money in 2021, raising £1.5bn, closely followed by cult boot maker Dr. Martens at nearly £1.3bn.

Some 53 companies listed on the Main Market, the highest tally in four years. Meanwhile, on London’s junior AIM market, floats skyrocketed to 55 in 2021, up sharply from just 16 last year.