US and China dominate global IPO market
Deliveroo’s pending stock sale gives London a much-needed financial boost, but the global IPO market is becoming a straight fight between China and the US.
The announcement that Deliveroo will pursue a London listing in the first half of the year, valuing the food delivery firm at around $10 billion, gave the City a much-needed financial fillip.
Lord Jonathan Hill, who published his review of the UK listings regime last week, said it was “great news” a firm born and bred in Britain had plumped for a domestic stock sale.
But one swallow does not make a summer. In Hill’s recommendations, the British peer and former European commissioner for financial services noted that London accounted for just 5% of global initial public offerings (IPOs) between 2015 and 2020.
As Euromoney wrote last week, the number of companies listed in London has fallen by 40% since its peak in 2008.
The harsh truth is that the global IPO market is now a two-way fight for supremacy that pits the US against China. The rest of the world picks up the scraps.
As ever, data doesn’t lie.