Just one technology company listed on the London Stock
Exchanges alternative investment market in the first six
months of 2017, even as initial public offerings for the sector
hit a two-year high globally.
Moore Stephens Tech Barometer report and PwCs
Global Technology IPO Review show that the U.K.s AIM
listings have nearly halted since the vote to leave the
European Union. Ethernity Networks was the only company to list
on AIM in the first half of this year across the software,
hardware, telecoms, electronics, support services and
other technology sectors, according to the Moore
Stephens report. That compares with eight such listings during
the same six-month period last year.
Brexit has been the main driver behind the lack of
IPOs, said Dougie Hunter, associate director at Moore
Stephens. I dont think you can get away from
Private-equity firms that earlier saw the U.K. stock market
as an attractive way to cash out of their investments now
prefer secondary buyouts, or selling companies in
their portfolio to other buyout firms, according to Hunter.
Meanwhile technology firms have picked up the pace in going
public, with 28 companies raising $5.1 billion in IPOs in the
second quarter, the highest number of tech IPOs in two years,
according to PwCs report released last month.
The improvement of economic fundamentals in the major
developed economies, continued rallies in many equity markets
and the backlog of tech companies waiting to go public led to
the increased volume, Raman Chitkara, partner and global
technology leader at PwC, said in the report.
The London Stock Exchange did not respond to a request for
comment about the slowdown in tech IPOs in the U.K.
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Investments in companies listed on Londons AIM have
made strong gains over the past year. The FTSE AIM All-Share
Index was up 29.61 percent in the 12 months through June,
according to data from FE Analytics.
Hunter believes there are a handful of companies looking to
list on AIM once theres more clarity on how U.K.
companies will be impacted by Britains exit from the
When the landscape becomes clearer, people will think
lets just get on with it, he said.