A flurry of tech and ecommerce listings have given Europe’s market for initial public offerings its best start to the year since 2015, as extended pandemic lockdowns fuel investor enthusiasm for digital companies.

So far this year, companies listing on European stock exchanges including London’s have sold €8.4bn in equity through 16 deals, according to Refinitiv data. That figure, which includes new funds raised and owners cashing out stakes, was the biggest haul and number of IPOs for the comparable period since 2015. It was the second-biggest amount raised in data going back to 1998.

The IPO surge highlights how lockdown winners are capitalising on increased demand from investors and a recovery in valuations across global markets. US listings have also soared, fetching a record $22.6bn over the same period.

London has kept hold of its IPO crown, with four companies floating on the main stock market and two on Aim, despite fears that over time it might lose business to the EU following Brexit.

Recent London listings by Moonpig and Dr Martens included cornerstone investment from BlackRock, the world’s largest fund manager, as well as San Francisco-based investment firm Dragoneer.


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Source: Financial Times

By Nikou Asgari