London stays the best choice for an preliminary public providing (IPO) amongst British tech companies which look to be eyeing up the general public markets regardless of a muted interval, based on new analysis.
In a survey of UK-based tech companies RSM UK discovered that simply over three-quarters (76%) have been contemplating itemizing publicly inside the subsequent 5 years.
Among the many companies planning a public launch, 57% mentioned their prime vacation spot can be in London, up from 53% the yr prior.
In distinction, simply 26% selected the US, sharply down from 47% final yr and 35% mentioned Europe, down from 42%.
This means that regardless of a sluggish few years for the London markets and a interval of uncertainty for companies, some confidence within the UK tech ecosystem has returned.
“There are clear indicators of bettering confidence amongst enterprise leaders in UK tech, and we’re seeing this come by of their intentions to discover a UK itemizing,” mentioned Ben Bilsland, associate and head of know-how trade at RSM UK.
“That is significantly encouraging, as UK tech corporations have sometimes regarded in the direction of a US market itemizing, because of the capability to entry capital on a a lot bigger scale.
“With vital instability round US authorities coverage, it’s attainable this has inspired UK companies to discover choices nearer to residence as an alternative.”
Bilsland additionally famous that the “sky excessive valuations of AI shares” within the States could also be “fuelling issues of an AI bubble” and, due to this fact, an incoming “market correction”.
Separate analysis from RSM UK earlier this month discovered that 76% of British tech companies felt assured their enterprise will develop below the present administration.
“Extra tech companies can also be leaning in the direction of the UK inventory market given its broader base of worldwide corporations and traders,” mentioned Diane Craig, associate and head of capital markets at RSM UK.
“Current regulatory adjustments which have streamlined the UK itemizing regime and made the UK a more cost effective possibility may be elements. Finally there are benefits to each the UK and US markets, and the best option will fluctuate relying on the enterprise’s particular person traits.”
Craig added that current listings in London, together with the RSM UK-advised Magnificence Tech Group IPO, have helped increase the market’s attraction.
