London’s stock market was boosted yesterday as two companies revealed plans to float.
London Tunnels and Kazakhstani carrier Air Astana both said they will list on the London Stock Exchange this year.
The announcements signal hope for a revival in listings after a tough year.
New dawn?: London Tunnels and Kazakhstani carrier Air Astana both said they will list on the London Stock Exchange this year
The City was dealt several blows in 2023, including Cambridge-based chipmaker Arm’s decision to float in New York.
A parade of firms left the exchange after being snapped up or moving their listings to other financial hubs.
London Tunnels, which plans to turn unused Second World War walkways and shelters into a tourist attraction with 2m visitors a year, hopes to raise £30m through its stock market debut this month.
The firm, which has already raised £10m from investors, is targeting a market capitalisation of £123m and will price its stock a £2 per share. It hopes to open the 1940s Kingsway Exchange Tunnels in central London in 2027. It envisions ‘achieving the same iconic status’ as the London Eye.
Chief executive Angus Murray said: ‘This unique set of tunnels, owned by a British company, built by the British Government, for the defence of Britain, that can further enhance London’s reputation as a leading tourist destination, should be listed in London.’
Meanwhile, Air Astana, which is owned by British defence giant BAE Systems and the Kazakh sovereign wealth fund, plans to raise £94m through listing in both Kazakhstan and London. AJ Bell investment director Russ Mould said the announcements showed the ‘IPO machine has whirred back into action’.
Figures showed 2023 was the quietest year for Initial Public Offerings in more than a decade. According to accountancy firm EY, there were just 23 listings in 2023 – a 49 per cent drop on the previous year – making it the slowest year since 2010.
Arm’s decision to float in New York in September was viewed as a snub of London.
The British tech firm had been a member of the blue-chip FTSE 100 index before it was taken private in 2016.
Irish building products group CRH and Smurfit Kappa have both moved their primary listings across the Atlantic. Dublin-based gambling giant Flutter is preparing for a secondary listing in the US this month.
Holiday operator Tui said last week it will press ahead with plans to move its primary listing to Frankfurt. If passed, the company will delist in London in June.
Meanwhile, education publisher Pearson has suggested it may move to New York.
‘There has been minimal IPO activity for the last two years. We believe this needs to be actively addressed,’ Peel Hunt analysts said this month.
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