UK IPO uptick offers hope for London Stock Exchange recovery
A pair of UK companies have announced plans to list on the London Stock Exchange in a move which provides renewed hope that British capital markets can make a turnaround.
Cobalt Holdings and Iforex have both confirmed their plans to list on the stock market, amid continued concerns over the falling number of IPOs (initial public offerings) in the UK.
Iforex, a fintech trading and betting firm, said it planned to list on the main market in June with a float of £50m.
In 2024, trading income at the firm totalled $50.1m, higher than in 2023 but significantly lower than the firm’s 2022 income of $76.8m.
Meanwhile, Cobalt Holdings has confirmed they are planning to list in London in June, with Glencore taking a 10 per cent stake in the metal investment company.
Sources familiar with upcoming listings told City PM that London continues to be attractive to materials firms, and Cobalt itself is modelling itself on London-listed Yellow Cake, which buys and holds uranium.
Tariff uncertainty hits UK IPOs
The news has come as many brokers expected a dearth of floats on the stock exchange until market volatility due to tariff uncertainty was resolved.
“We were previously expecting UK IPO activity to pick up after Easter,” Peel Hunt analysts wrote.
“The recent market volatility has caused many issuers to rethink near-term timetables, particularly those targeting second quarter transactions.
“With the rebound in market levels and improved sentiment in recent weeks, some are keeping optionality on later pre-summer windows, almost most have shifted to post-summer.”
There have only been two IPOs this year worth more than £30m, activist fund Achilles Investment and accountancy firm MHA, along with a handful of smaller AIM listings.
Earlier this month, Puma AIM VCT revealed it was planning to launch on the stock exchange in the first AIM VCT to float in 18 years.
Other potential IPOs on the stock exchange include Monzo, currently rumoured to be lining up bankers for its £6bn float, and Moneybox.