London markets will be ‘dead’ if rate of decline continues, warns Peel Hunt chief
London’s capital markets could end up “dead” if they continue at their current rate of decline, the boss of Peel Hunt has warned.
Steven Fine, who heads the mid-tier investment bank and broker, fired a warning shot to the market today over the dearth of IPO activity and speed of firms delisting.
“Our industry has been dramatically hollowed out over the last five, 10 years,” he told the Financial Times. “If we carry along this trajectory we will end up just like the Irish market, which is dead.”
The comments come after a volley of warning shots from the firm in recent months over the state of London’s public markets.
In a note to investors this week, the bank said that the small-cap index of smaller firms in the capital could be gutted by 2028 if the “relentless” pace of de-equitisation continues.
A number of firms have fallen into the sights of buyers this year, with 12 coming under offer in the first three months of the year alone.
“The relentless M&A and the de-equitisation, the lack of refilling the hopper is starting to bite quite hard,” the Peel Hunt chief told the FT. “I’m not convinced the IPO market is going to open soon.”